Middle Market Deals and how to buy, sell and raise capital from $5 to $500 million

Some months ago, I wrote a short post about the CFA exam and its worth to financial professionals.  Today, I'll cover some of the relevent NASD Licenses.

As you deal with business intermediaries, especially those who help to complete securities transactions, including venture capital and other private placements, as well as financial advisors, there are a variety of licenses you should look to see.

Series 24:  General Principal

The NASD generally requires that at least two people in each firm be licensed principals of the firm.  The general idea is that they watch each other to ensure that no one in the firm strays from the NASD regulations.  The principals also supervise the other employees in the firm.

Series 7:  Registered Representative

The series 7 license is intended to qualify a person to work in a general securities role within a registered broker-dealer.  Stock brokers and investment bankers are required to have this license.

Series 63:  Uniform Securities Agent

The series 63 is required by virtually states to operate within their jurisdiction.  Much of state securities law is governed under common guidelines, allowing for a single uniform examination across state borders.  The focus of this license is to ensure compliance with ethical standards.

Series 65:  Investment Advisor

A typical investment advisor, a person who provides financial planning advice within a registered investment advisory business, obtains a series 65 license.

Series 66:  Combined State Law examination

The series 66 license applies in place of the series 63 and 66 65 when the applicant also completes the series 7 licensing procedures and allows the person to act as an investment advisor.

For more information o these and other exams, visit the NASD website.