The Series 7 exam, also known as the General Securities Representative Qualification Examination, is a multiple-choice exam that qualifies you to sell all types of securities products except commodities and futures. It is one of the most comprehensive and challenging securities exams and is required for anyone who wants to become a stockbroker.
To prepare for the exam, you should take a comprehensive review course and practice taking practice exams. There are many different review courses and practice exams available, so you can find one that fits your learning style and budget.
What is a series 7?
The Series 7 exam is administered by the Financial Industry Regulatory Authority (FINRA) and is required by most states for registration as a general security representative. The exam is 6 hours and 45 minutes long and consists of 265 multiple-choice questions. To pass the exam, you must score at least 72%. You are serious about becoming a stockbroker.
Series 7 exam covers a wide range of topics, including:
- Corporate and municipal securities
- Investment company products
- Options
- Direct participation programs
- Government securities
- Securities regulation
- General business and ethical practices
Who should take the series 7?
The Series 7 exam is required for anyone who wants to become a general securities representative, also known as a stockbroker. This includes people who want to work for a brokerage firm, independent financial advisor firm, or other financial services company.
This exam is also a good option for people who want to pursue a career in financial planning or investment management. The exam covers a wide range of topics that are relevant to these fields, such as corporate and municipal securities, investment company products, options, and government securities.
If you are interested in a career in the financial services industry, I encourage you to consider taking this exam. It is a challenging exam, but it is a valuable certification that can open up many opportunities for you.
Here are some specific examples of people who should consider taking the Series 7 exam:
- People who want to become stockbrokers
- People who want to work for a brokerage firm, independent financial advisor firm, or other financial services company.
- People who want to pursue a career in financial planning or investment management.
How to get a series 7 license
To get a Series 7 license, you must follow these steps:
- Meet the eligibility requirements. You must be at least 18 years old and have a high school diploma or GED. You must also be sponsored by a FINRA member firm.
- Pass the Series 7 exam. It is a 6-hour, 45-minute exam that covers a wide range of topics, including corporate and municipal securities, investment company products, options, direct participation programs, government securities, securities regulation, and general business and ethical practices. To pass the exam, you must score at least 72%.
- Register with your state securities regulator. Once you have passed the exam, you must register with your state securities regulator. The registration process varies from state to state, so be sure to check with your state securities regulator for specific instructions.
Once you have completed these steps, you will be licensed to sell all types of securities products except commodities and futures.
Here are some tips for getting a Series 7 license:
- Start preparing for the Series 7 exam early. The exam is challenging, so you need to give yourself plenty of time to study.
- Take a comprehensive Series 7 review course. There are many different review courses available, so you can find one that fits your learning style and budget.
- Practice taking Series 7 practice exams. This will help you get familiar with the format of the exam and identify any areas where you need to focus your studies.
Series 7 training courses to consider pursuing
There are many different Series 7 training courses available, so you can find one that fits your learning style and budget. Here are a few of the most popular Series 7 training courses:
- Kaplan Financial Education: Kaplan Financial Education is one of the leading providers of Series 7 training courses. They offer a variety of different courses, including online, self-paced courses, live online courses, and in-person courses.
- Schweser: Schweser is another popular provider of Series 7 training courses. They offer a variety of different courses, including online, self-paced courses, live online courses, and in-person courses.
- Wiley: Wiley is a well-respected publisher of financial services books and study materials. They also offer a Series 7 training course that is available online and in-person.
- Achievable: Achievable is a newer provider of Series 7 training courses. They offer a self-paced online course that is designed to be affordable and accessible.
- Knopman Marks: Knopman Marks is a boutique provider of Series 7 training courses. They offer a variety of different courses, including online, self-paced courses, live online courses, and in-person courses.
When choosing a Series 7 training course, it is important to consider your learning style and budget. You should also make sure to choose a course that is offered by a reputable provider.
Eligibility
To be eligible to take the Series 7 exam, you must meet the following requirements:
- Be at least 18 years old
- Have a high school diploma or GED
- Be sponsored by a FINRA member firm
There are no prerequisites for the Series 7 exam, but it is helpful to have a basic understanding of financial markets and securities products.
You can find a list of FINRA member firms on the FINRA website.
Once you have met all of the eligibility requirements, you can register for the Series 7 exam through the FINRA website.
Please note that some states may have additional requirements for registration as a general securities representative. Be sure to check with your state securities regulator for specific requirements.
Content Outline
The Series 7 exam is divided into four sections:
- Section 1: Knowledge of the Securities Industry (28%) This section covers a wide range of topics, including the history and structure of the securities industry, the types of securities products available, and the laws and regulations that govern the securities industry.
- Section 2: Characteristics of Securities Products (30%) This section covers the different types of securities products available, including corporate and municipal securities, investment company products, options, and government securities.
- Section 3: Trading and Markets (25%) This section covers the different types of securities markets, the trading process, and the risks associated with trading securities.
- Section 4: Customer Accounts and Transactions (17%) This section covers the different types of customer accounts, the types of transactions that can be executed in customer accounts, and the laws and regulations that govern customer accounts and transactions.
The Series 7 exam is a challenging exam, but it is possible to pass it with hard work and dedication. By focusing on the topics covered in the content outline, you can increase your chances of success.
Structure of the exam
| Section | Number of questions | Percentage of exam |
|---|---|---|
| Knowledge of the Securities Industry | 74 | 28% |
| Characteristics of Securities Products | 79 | 30% |
| Trading and Markets | 66 | 25% |
| Customer Accounts and Transactions | 46 | 17% |
| Total | 265 | 100% |
The Series 7 exam is a multiple-choice exam, and each question has four answer choices. You will have 6 hours and 45 minutes to complete the exam.
To pass the Series 7 exam, you must score at least 72%.
Conclusion
The Series 7 exam is a challenging but rewarding exam. Passing the Series 7 exam will qualify you to sell all types of securities products except commodities and futures. This can open up many opportunities for you in the financial services industry.
If you are serious about becoming a stockbroker or pursuing a career in the financial services industry, I encourage you to start preparing for the Series 7 exam today. There are many different resources available to help you prepare, including review courses, practice exams, and study materials.
FAQs
The Series 7 exam covers a wide range of topics, including corporate and municipal securities, investment company products, options, direct participation programs, government securities, securities regulation, and general business and ethical practices.
There are many different ways to prepare for the Series 7 exam. You can take a comprehensive review course, practice taking practice exams, join a study group or forum, or take a self-paced online course.
You can retake the Series 7 exam up to 5 times within a 12-month period from the date of your first attempt.
Here are some tips for passing the Series 7 exam:
- Start studying early. The exam is challenging, so you need to give yourself plenty of time to study.
- Take a comprehensive review course. This will help you learn the material and prepare for the format of the exam.
- Practice taking Series 7 practice exams. This will help you identify any areas where you need to focus your studies.
- Get enough sleep and eat healthy foods on the day of the exam.
