Series 7

The Series 7 exam licenses the holder to sell a wide range of securities products with the exception of commodities and futures. Referred to formally as the General Securities Representative Qualification Examination, the Series 7 exam and its licensing is administered by the Financial Industry Regulatory Authority (FINRA).

Stockbrokers in the United States need to finish the Series 7 exam to get a license to trade. The Series 7 exam centers around investment risk, taxation, equity, and debt instruments; packaged securities, options, retirement plans, and communications with clients for prospective securities industry experts. This early on level exam evaluates a candidate's information on essential securities industry information remembering concepts fundamental to working for the industry.

The purpose of the Series 7 license is to set a level of capability for a registered representative or stockbroker to work in the securities industry. The Series 7 license is an essential requirement for a section level broker. The licensing exam covers a broad scope of financial terms and subjects as well as securities regulations.

Candidates who breeze through the Series 7 exam can trade numerous securities, like stocks, mutual funds, options, municipal securities, and variable contracts. The Series 7 license doesn't cover selling real estate or life insurance products. As well as getting the Series 7 license, many states expect that registered representatives pass the Series 63 exam, additionally called the Uniform Securities Agent State Law Exam.

Series 7 Requirements

Since Oct. 1, 2018, Series 7 candidates are required to pass the Securities Industry Essentials (SIE) exam as well as the Series 7 exam to receive the General Securities registration. As per FINRA, the SIE is an early on level exam that "surveys a candidate's information on essential securities industry information remembering concepts fundamental to working for the industry, like types of products and their risks; the structure of the securities industry markets, regulatory agencies and their capabilities; and restricted rehearses." If you really want more information on the SIE, FINRA's SIE exam content blueprint gives more subtleties.

Candidates who need to take the Series 7 exam must be sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm. The member firm must file a Form U4 (Uniform Application for Securities Industry Registration or Transfer Form) for the candidate to be registered for the licensing exam. Non-FINRA members ought to utilize the Test Enrollment Services System (TESS) to register for the exam. FINRA oversees the activities of securities firms and registered brokers, guaranteeing that any individual who sells securities products is qualified and tried.

Candidates who need to take the Series 7 exam must be sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm.

Series 7 Exam Structure

The Series 7 is structured as follows:

1. Looks for Business for the Broker-Dealer from Customers and Potential Customers: 9 inquiries
2. Opens Accounts subsequent to Obtaining and Evaluating Customers' Financial Profile and Investment Objectives: 11 inquiries
3. Gives Customers Information about Investments, Makes Suitable Recommendations, Transfers Assets, and Maintains Appropriate Records: 91 inquiries
4. Acquires and Verifies Customers' Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions: 14 inquiries

The Series 7 exam has 125 various decision questions, endures 225 minutes, and cost $300. The passing score is 72%.

Prior to Oct. 1, 2018, the Series 7 exam contained 250 inquiries covering five major job capabilities. The exam duration was six hours, had no essentials, and cost $305. A score of 72% was required to pass.

FINRA doesn't furnish candidates with any physical certificate as proof of exam completion. Current or potential employers who wish to see proof of completion must access this information through FINRA's Central Registration Depository (CRD).

Completion of the Series 7 exam is an essential for the vast majority different securities licenses, for example, the Series 24, which permits the candidate to oversee and oversee broker activities.

Features

• The purpose of the Series 7 license is to lay out a level of skill for registered representatives in the securities industry.
• The Series 7 exam covers points on investment risk, taxation, equity and debt instruments, packaged securities, options, and retirement plans.
• The Series 7 is an exam and license that qualifies the holder for sell a wide range of securities products with the exception of commodities and futures.