Series 87 Cheat Sheet — Research Reports, Disclosures, Conflicts & Dissemination

Series 87 is “research integrity under supervision.” The best answer is usually the one that is most accurate, most disclosed, most approved, and most consistent with the firm’s research controls.

This cheat sheet is a study aid (not legal advice). Always follow your firm’s written supervisory procedures (WSPs) and current FINRA/SEC requirements.

Quick links:

• Guide Home
• FAQ
• Official Resources

Exam map (where points come from)

Series 87 at a glance (FINRA)

• Items: 50 scored + 5 unscored (55 total)
• Time: 1 hour 45 minutes (105 minutes)
• Passing score: 74

Job functions and weights

How Series 87 questions are written (exam mindset)

• Many questions are “what must be disclosed?”, “what approval is needed?”, or “what is prohibited?”
• The exam rewards process discipline: don’t improvise disclosures; follow the report template and the required internal review path.
• “Best answer” is usually the one that prevents harm: avoids misleading statements, avoids rumor spread, and escalates to compliance when needed.

Series 87 “best answer” checklist

When two choices both look “compliant,” pick the answer that is most:

• Reader-protective: complete, not misleading, fair and balanced.
• Process-correct: follows WSPs, uses required approvals, and uses approved templates.
• Disclosure-complete: surfaces conflicts, ratings definitions, and required context.
• Documented: preserves an audit trail (version, approvals, recipients, timestamps).
• Channel-safe: uses approved dissemination methods with retained records.

Research-integrity reflexes table (high-yield)

Bookmark table: fastest Series 87 decision sort

Fast eliminations (often wrong on Series 87):

• “Send the draft to clients for feedback” (unapproved draft dissemination).
• “It’s okay because it was a text/DM” (it’s still a supervised communication).
• “Skip the disclosure because it’s small / not important” (disclose and/or escalate).

Rule and regulation map (Series 87 scope)

You do not need to memorize legal text, but you should recognize what each label is “about.”

Research report workflow (how compliance becomes a report)

Series 87 expects you to recognize the “controlled pipeline” for research:

• Collect and classify information
  • distinguish public info vs nonpublic; treat potential MNPI with extra controls (high level)
  • use approved sources and retain support for key claims (high level)
• Draft the report using supported analysis and consistent definitions.
• Fact-check and “fair and balanced” check
  • remove promissory language, exaggeration, and unsupported certainty
  • ensure risks and counterpoints are not buried or omitted (high level)
• Insert required disclosures (ratings, chart/distribution info, conflicts, ownership, etc.).
• Add required certifications (e.g., analyst certification concepts, high level).
• Obtain required approvals before publication (research principal/compliance per WSPs).
• Publish through approved firm channels.
• Disseminate through approved methods with recordkeeping.
• Update/Correct promptly if errors, conflicts, or material changes arise (high level).

If the question asks “what should you do?”, the safest answer often includes follow WSPs, get approval, and document.

Research-control flow

    flowchart TD
	  A["Research idea, draft, or external request appears"] --> B{"Approved source and supported content?"}
	  B -->|"No"| C["Stop, verify, and escalate"]
	  B -->|"Yes"| D{"Disclosures / certifications / approvals complete?"}
	  D -->|"No"| E["Add required disclosures and route for approval"]
	  D -->|"Yes"| F{"Approved dissemination channel?"}
	  F -->|"No"| G["Do not send; move to approved channel and archive path"]
	  F -->|"Yes"| H["Disseminate and retain the record"]

Channel-safety quick cues

• Email, IM, DM, social post, blast, and teaser all still count as supervised communications when used for research distribution.
• Shortened content is not exempt from disclosure logic; if the summary creates a misleading impression, it is still a problem.
• If the channel is new or not clearly approved, the safest answer is pre-approval plus record-retention controls before use.

F4 — Report preparation: what must be disclosed (high yield)

Disclosure checklist (Series 87 level)

Be ready for questions that ask “which disclosure is required?” Common categories in the outline:

• Ratings system disclosures
  • what rating categories mean (concept)
  • how ratings are distributed across the firm’s universe (high level)
• Historical price chart / price history information (high level)
• Rating / price target change history (concept)
  • when the firm requires “history context,” include it (high level)
• Investment banking-related conflicts
  • past/current IB relationships and related conflicts (high level)
• Issuer/third-party compensation influences (concept)
  • if compensation or payments could bias research, expect disclosure and controls (high level)
• Analyst/household financial interests
  • holdings in subject company securities (high level)
• Firm financial interests
  • firm ownership positions
  • whether the firm makes a market in the security (high level)
• Control relationships / affiliations (high level)
  • control relationships and distribution-interest disclosures (concept)
• Other material conflicts
  • any analyst/firm conflicts that could reasonably matter to readers (high level)
• Public appearance disclosures
  • conflicts disclosed not only in reports but also in public appearances (high level)

Exam pattern: if the stem highlights a potential conflict, the correct answer often includes “disclose it” and “obtain approvals” rather than “ignore it because it’s small.”

Disclosure triage table

Ratings system: common traps

• using rating language inconsistent with the firm’s definitions
• omitting required rating distribution disclosure (when required)
• implying a rating is a guarantee (“will outperform” vs “is expected/likely,” high level)
• presenting ratings or targets without the required context/disclosures

If the stem asks “what should be included,” the best answer usually adds definitions + context + disclosure, not marketing language.

Supportability and report quality (what F4 is really testing)

Series 87 expects “supportable research,” not vibes:

• Attribution: don’t present rumors or third-party claims as firm-verified facts (high level).
• Consistency: rating, thesis, valuation method, and risks must match each other.
• Balance: don’t omit material risks or known counterarguments (high level).
• Clarity: define key terms (ratings, time horizon, target) and avoid ambiguous language.
• Updates: if something material changes, the safe answer includes updating/correcting through approved processes (high level).

Conflicts of interest: what the exam wants you to do

Series 87 expects you to recognize conflict categories and the safe response:

• Identify the conflict.
• Disclose it in the report (and in public appearances when applicable).
• Follow restrictions (quiet periods, public appearance limits, trading limits) per policy (high level).
• Escalate to compliance/research principal when unsure.

F4 — Approvals, certifications, and supervision (high yield)

Approvals before dissemination

The outline explicitly tests “appropriate approvals needed prior to disseminating reports or information.”

Series 87 pattern:

• If the question asks whether you can distribute a draft externally: no (get approval first).
• If the question involves a public appearance: assume approval + disclosure requirements apply.
• If the question involves sending research through a new channel (new platform, new mailing list): assume pre-approval + recordkeeping (high level).

Approval-path quick table

Regulation AC certification (high level)

Know what Reg AC is trying to enforce:

• the analyst personally certifies required statements about views and required attestations (high level)
• the certification is tied to accountability and integrity of research

Exam trap: “someone else can certify for the analyst” (generally the analyst must certify; follow WSPs).

Non-GAAP and “adjusted” metrics (Reg G mindset)

If research uses non-GAAP numbers (e.g., “adjusted EPS”):

• ensure the presentation isn’t misleading (high level)
• ensure appropriate context/reconciliation concepts are followed (high level)
• don’t “cherry-pick” adjustments to manufacture a narrative (high level)

Series 87 doesn’t require accounting reconciliation detail; it tests that you recognize non-GAAP needs controls.

Regulation FD (fair disclosure) mindset

If the stem hints at:

• selective disclosure by issuer management
• “exclusive” information shared with a subset of clients
• material information not broadly disclosed

…the safe answer generally involves escalation, avoiding dissemination, and following MNPI controls (high level).

F4 — Report types and what they must contain

Series 87 expects you to recognize common report types and their typical structure.

Report types (from the outline)

• Initiation of coverage
• Rating / price target / projected earnings changes
• Termination of coverage
• Earnings preview / earnings review / earnings analysis
• Fundamental reports
• Topical/theme reports
• Short news notes/summaries
• Industry reports

Research report “core components” (high yield)

The outline lists components; Series 87 questions often ask “what belongs” in a report:

• business model analysis
• company overview
• competitive position
• financial position
• quality of management
• industry overview
• industry/company outlook (projection)
• dividend outlook (if relevant)
• investment thesis
• sensitivity of costs and revenues
• quality/quantity of earnings
• review of recently released financial data
• review of recent news
• rating/recommendation
• valuation discussion
• investment risks

Exam pattern: if asked to pick the “best” report section, choose the one that connects the thesis → valuation → risk.

F5 — Presenting and discussing research (high yield)

Audiences you must recognize

Series 87 expects familiarity with who research is discussed with:

• retail and institutional clients (buy-side analysts, PMs, hedge fund/mutual fund/pension managers)
• institutional and retail sales forces
• trading departments
• company management
• press and media
• other research teams

Public appearance mindset

If you’re speaking publicly:

• disclosures still apply (conflicts, ownership, etc., high level)
• communications must remain fair and balanced
• don’t add “new” material facts outside controls (Reg FD/MNPI mindset)
• follow approvals and scripts/controls per firm policy

Communications categories (Rule 2210 mindset, high level)

Series 87 questions sometimes hide the issue as “it was just a message.”

At an exam level, written communications are commonly treated as:

• Retail communication: broadly distributed to retail; typically requires more rigorous pre-use review/approval (high level).
• Correspondence: narrower, retail-directed messages; still supervised and retained (high level).
• Institutional communication: sent only to institutional investors; still supervised, still must be fair and not misleading (high level).

If the stem mentions a channel that avoids the firm archive (personal email, personal phone, disappearing messages), the safest answer is to stop and use approved channels.

F5 — Dissemination channels and “rumor traps”

Dissemination channels (explicit in outline)

Series 87 expects you to recognize that dissemination includes:

• telephone, voicemail blasts
• IM/text/email
• firm websites and internal systems (“squawk box”)
• external news sources
• social media
• video pitches and podcasts

Exam pattern: “this was just a text” is not a defense. If it’s research dissemination, assume it’s a communication subject to controls and recordkeeping.

Dissemination: common compliance traps

• Selective sharing: sending “good news” to a favored subset before broader release (fairness + controls issue, high level).
• Inconsistent versions: forwarding older drafts, screenshots, or excerpts that don’t match the final approved report.
• Promotional summaries: a “teaser” that drops required context/disclosures (high level).
• Press/media leakage: sharing research to press or influencers outside the approved process (high level).
• Unarchived channels: using platforms the firm can’t retain/monitor.

Channel and dissemination quick sorter

Circulation of rumors (high yield)

If a question stem says:

• “someone heard…”
• “market chatter suggests…”
• “a rumor is spreading…”

…the safest answer is usually:

• do not disseminate unverified information
• escalate to compliance/supervisor
• use only verified, supportable sources (high level)

Rumor / selective-disclosure quick table

Market manipulation / paid influence (high level)

If the stem mentions:

• compensation for publishing or promoting a security
• paying a media outlet/influencer to push research

…expect the correct answer to involve prohibition and escalation.

Distribution participation and research restrictions (high level)

If the firm is participating in a distribution, Series 87 expects you to recognize that:

• research dissemination can be restricted and subject to special rules (high level)
• the correct answer often includes “follow restricted period controls” and “obtain approvals”
• “quiet periods” and “participant” concepts can change what is permitted (high level)

Recordkeeping and audit trail (always a safe answer ingredient)

Series 87 loves answers that preserve evidence:

• retain drafts and final versions per WSPs
• retain approvals and certifications
• retain dissemination records (who received, when, what version)
• retain supporting analysis (high level)
• retain public appearance materials (slides, scripts, talk tracks) when applicable (high level)
• retain approvals for marketing summaries and reprints when applicable (high level)

If two answers seem plausible, prefer the one that includes documentation + supervision.

High-yield “if you see X → do Y” patterns

• “conflict exists” → disclose + follow restrictions + get approvals.
• “public appearance” → approvals + disclosures + fair/balanced language.
• “non-GAAP metric used” → ensure non-misleading presentation; follow required non-GAAP controls (high level).
• “rumor/chatter” → don’t repeat; verify or escalate.
• “distribution participation” → follow restricted period controls; consult compliance.
• “text/IM to clients” → treat as a supervised communication; retain records.
• “trading ahead concern” → stop and escalate; follow the firm’s restricted list and timing controls (high level).
• “request to remove disclosure language” → generally wrong; disclosures are not optional (high level).
• “issuer asks to pre-approve language” → follow WSPs; avoid letting issuers control research content (high level).

Common “wrong but tempting” answer patterns

• Treating a shorter or informal communication as outside the research-approval and retention system.
• Solving the disclosure issue by removing a negative fact instead of disclosing the conflict or risk clearly.
• Assuming a technically accurate statement is safe even when it is presented in a one-sided or promotional way.
• Letting deal-team pressure, issuer pressure, or timing pressure override the research-control process.

Five things to remember under pressure

1. Shorter does not mean safer; a teaser can still be a regulated research communication.
2. If a conflict matters, disclose it or escalate it.
3. The approved version and approved channel both matter.
4. Pressure from issuers or bankers is itself a control issue.
5. In Series 87, the safer answer is usually the one that prevents dissemination until the process is clean.

Glossary (expanded, Series 87 scope)

Roles and responsibilities

• Compliance: the control function that interprets rules, maintains WSPs, approves/monitors communications, and escalates issues (high level).
• Communications principal: a designated approver for communications with the public; exact role/title varies by firm (high level).
• Investment banking (IB): corporate finance function (underwriting, advisory); a major source of conflicts that research must disclose/control (high level).
• Issuer: the company being covered; interactions must avoid MNPI and undue influence (high level).
• Legal: supports policy and disclosure language; often involved in escalation for sensitive issues (high level).
• Research analyst: prepares research and communicates it within the firm’s controls; must follow disclosures/approvals (high level).
• Research management: sets research policy, templates, and controls; may own the rating system definitions (high level).
• Research principal: supervisor/approver role for research analysts; often responsible for review/approval of research content (high level).
• Sales / sales desk: distributes ideas to clients; must use approved communications and avoid misleading summaries (high level).
• Syndicate / underwriting desk: manages offering process; drives distribution-related restrictions (high level).
• Trading desk: executes trades; subject to restricted-list and trading-ahead controls (high level).

Research report mechanics

• Analyst certification: required statement(s) that the research reflects the analyst’s views and required attestations (Reg AC concept, high level).
• Coverage universe: the set of issuers the firm follows; used in rating distribution disclosures (high level).
• Disclosure section: standardized part of a report where required conflicts, affiliations, and ratings disclosures appear (high level).
• Initiation of coverage: first full report on an issuer; expect full disclosures and clear methodology (high level).
• Termination of coverage: ending coverage; may require explanation and appropriate disclosures (high level).
• Investment thesis: the core “why” behind the rating; should connect drivers, valuation, and risks (high level).
• Price chart / price history: standardized historical display tied to research; often includes context for rating/target history (high level).
• Price target: a stated expected price level over a defined horizon; must be supported and not framed as a guarantee (high level).
• Rating / recommendation: the firm’s stated view (e.g., buy/hold/sell); must use the firm’s defined meanings (high level).
• Rating change: an upgrade/downgrade/other rating movement; often triggers “what must be disclosed and approved?” questions (high level).
• Ratings distribution: breakdown of how many covered issuers fall into each rating bucket; disclosure helps readers interpret bias risk (high level).
• Research report: a written communication containing analysis, ratings/targets, or guidance; typically treated as a supervised communication (high level).
• Time horizon: the timeframe the rating/target is meant to apply to; must be stated clearly and applied consistently (high level).

Conflicts and disclosures

• Beneficial ownership: owning or having a financial interest in a security; can create disclosure and restriction obligations (high level).
• Chaperoning: supervised presence/monitoring when private-side information could be discussed; used to prevent MNPI leakage (high level).
• Conflict of interest: any relationship/interest that could reasonably affect objectivity; often requires disclosure and controls (high level).
• Control relationship: a relationship where a person/entity controls or is controlled by the issuer; commonly requires disclosure (high level).
• Household member interest: interests of people in the analyst’s household can be treated as relevant for conflicts (high level).
• Information barrier (“Chinese wall”): firm controls separating research from IB and other functions to limit conflicts and MNPI (high level).
• Investment banking (IB) relationship: past/current/prospective IB services can create conflicts; expect disclosure and controls (high level).
• Market making: the firm making a market in the issuer’s security can create conflicts; often requires disclosure (high level).
• Material conflict: a conflict that a reasonable investor would consider important; Series 87 questions often assume it should be disclosed (high level).
• Preclearance: internal approval process for personal trading to avoid conflicts and trading-ahead concerns (high level).

Communications and dissemination

• Blast / mass email: broad distribution message; should be treated like a formal communication with required review/retention (high level).
• Communication (FINRA Rule 2210 concept): any written/electronic message to customers/prospects; must be fair, balanced, and not misleading (high level).
• Correspondence: narrower retail-directed written communication; still supervised and retained (high level).
• Excerpt / summary (“teaser”): shortened content; must not omit required context/disclosures or become promotional (high level).
• Institutional communication: written communication to institutional investors only; still supervised and must be fair and not misleading (high level).
• Public appearance: spoken (or similar) communications in public forums (seminars, media, webcasts, etc.); disclosures and approvals apply (high level).
• Reprint: redistribution of previously issued research; still requires proper approvals and complete disclosures (high level).
• Retail communication: broadly distributed retail-facing communication; typically subject to stricter pre-use review/approval (high level).
• Social media post: a communication; must be approved/retained per firm policy and cannot be misleading (high level).
• Talk track: prepared spoken messaging for sales/public appearances; often requires review and retention (high level).
• Dissemination: distributing research through any channel (email, IM, website, social, media); recordkeeping and approvals apply (high level).

MNPI, disclosure controls, and integrity

• Insider trading: trading while in possession of MNPI; Series 87 questions expect you to stop and escalate (high level).
• Material: information a reasonable investor would consider important; triggers heightened controls (high level).
• Misleading statement / omission: content that creates a false impression; the safe answer is to correct, disclose, and/or escalate (high level).
• MNPI: material nonpublic information; do not trade or disseminate; escalate and follow controls (high level).
• Promissory language: statements that imply certainty/guarantees; usually inappropriate in regulated communications (high level).
• Reg FD: Regulation Fair Disclosure; selective disclosure risks; safest exam answer is usually escalation and control compliance (high level).
• Reg AC: analyst certification; emphasizes analyst accountability for the views in the report (high level).
• Reg G / non-GAAP: framework for non-GAAP disclosures; research must not present adjusted metrics in a misleading way (high level).
• Rumor: unverified market chatter; Series 87 expects “don’t spread—verify or escalate” (high level).
• Selective disclosure: giving important information to a subset rather than broad public release; triggers Reg FD/MNPI controls (high level).

Offerings, distributions, and trading-ahead themes

• Distribution: an offering/sale process where special research/communications restrictions may apply (high level).
• Follow-on offering: a subsequent offering by an issuer; often triggers distribution-related research restrictions (high level).
• IPO: initial public offering; often triggers distribution-related research restrictions (high level).
• Participant: a firm involved in a distribution (e.g., underwriting/selling group); can change what research dissemination is permitted (high level).
• Quiet period: restricted time window where research publication/dissemination is limited due to offering participation (high level).
• Reg M: SEC rules addressing manipulation risk around distributions; interacts with research timing/communications (high level).
• Stabilization: permitted price-support activities under strict rules during distributions; often discussed alongside Reg M concepts (high level).
• Trading ahead of research: acting (or appearing to act) on research content before clients receive it; expect restricted-list and escalation answers (high level).
• Underwriter / selling group: firms selling securities in a distribution; their role can affect research restrictions and required disclosures (high level).

Supervision and recordkeeping

• Approval: required sign-off before publication/dissemination; varies by content/channel; follow WSPs (high level).
• Archive: the firm’s retained system of record for communications, approvals, and distribution evidence (high level).
• Audit trail: evidence of how a report was produced, approved, and distributed (high level).
• Books and records: required retention of communications, research, approvals, and related materials (high level).
• Restricted list: internal control list limiting activity (research, sales, trading) on certain securities (high level).
• Watch list / gray list: internal monitoring list for heightened sensitivity (possible conflicts/MNPI); may trigger extra review and restrictions (high level).
• WSPs: written supervisory procedures; the firm’s documented compliance playbook for approvals, supervision, and retention.