Series 7 Exam and License: Unlocking the World of Securities Trading
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Summary:
Looking to become a stockbroker in the United States? Then you’ll need to pass the Series 7 exam, administered by the Financial Industry Regulatory Authority (FINRA). The exam covers a broad range of topics and requires a passing score of at least 72%. As of October 1, 2018, candidates must pass both the SIE and Series 7 exams to receive General Securities registration. Passing the Series 7 exam is a prerequisite for various securities licenses, including the Series 24, which enables candidates to supervise and manage broker activities.
The Series 7 exam is administered by the Financial Industry Regulatory Authority (FINRA) and grants licenses to trade all types of securities products, except for commodities and futures.
The Series 7 exam covers a wide range of topics, including investment risk, taxation, equity, and debt instruments, packaged securities, options, retirement plans, and how to interact with clients. It’s an essential requirement for entry-level brokers who want to work in the securities industry.
The Series 7 exam covers a wide range of topics, including investment risk, taxation, equity, and debt instruments, packaged securities, options, retirement plans, and how to interact with clients. It’s an essential requirement for entry-level brokers who want to work in the securities industry.
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Series 7 overview
Passing the exam is an essential requirement for entry-level brokers, with the Series 7 license, you’ll demonstrate your knowledge of basic securities industry information and show that you’re competent to handle the demands of the job.
As of October 1, 2018, Series 7 candidates must pass both the SIE and Series 7 exams to receive General Securities registration.
According to the Financial Industry Regulatory Authority (FINRA), the SIE exam assesses a candidate’s knowledge of basic securities industry information, such as types of products and their risks, the structure of securities industry markets, regulatory agencies and their functions, and prohibited practices.
FINRA’s SIE exam content outline provides more details on what to expect from the exam.
What are the requirements for the Series 7 exam?
To take the Series 7 exam, candidates must be sponsored by a FINRA or SRO member firm. The firm is responsible for filing a Form U4 to register the candidate for the exam.
Those outside of FINRA can also register for the exam using the Test Enrollment Services System (TESS). FINRA keeps a watchful eye over securities firms and brokers, ensuring that everyone who sells securities products is qualified and tested.
The structure of the Series 7 exam
The Series 7 exam is structured like so:
- Seeks Business for the Broker-Dealer from Customers and Potential Customers: 9 exam questions
- Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives: 11 exam questions
- Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets, and Maintains Appropriate Records: 91 exam questions
- Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions: 14 exam questions
If you want to become a stockbroker in the United States, you’ll need to take the Series 7 exam, which consists of 125 multiple-choice questions and takes 225 minutes to complete.
The exam covers various topics, including investment risk, taxation, equity and debt instruments, packaged securities, options, retirement plans, and interactions with clients. To pass the exam, you’ll need to score at least 72%. Keep in mind that the exam fee is $300.
Before October 1, 2018, the Series 7 exam was a bit different. It had 250 questions covering five major job functions and lasted six hours. There were no prerequisites to take the exam, and the passing score was also 72%.
The exam covers various topics, including investment risk, taxation, equity and debt instruments, packaged securities, options, retirement plans, and interactions with clients. To pass the exam, you’ll need to score at least 72%. Keep in mind that the exam fee is $300.
Before October 1, 2018, the Series 7 exam was a bit different. It had 250 questions covering five major job functions and lasted six hours. There were no prerequisites to take the exam, and the passing score was also 72%.
No physical certificate is given by FINRA to candidates upon completing the exam. Employers must access proof of completion through FINRA’s Central Registration Depository (CRD).
The Series 7 exam is a prerequisite for various securities licenses, including the Series 24, which enables candidates to supervise and manage broker activities.
The Series 7 exam is a prerequisite for various securities licenses, including the Series 24, which enables candidates to supervise and manage broker activities.
Key takeaways
- The Series 7 exam is administered by FINRA and grants licenses to trade all types of securities products, except for commodities and futures.
- Passing the exam is essential for entry-level brokers to demonstrate their knowledge of basic securities industry information and show that they are competent to handle the job’s demands.
- As of October 1, 2018, candidates must pass both the SIE and Series 7 exams to receive General Securities registration.
- Series 7 exam, candidates must be sponsored by a FINRA or SRO member firm. Those outside FINRA can also register for the exam using TESS.
- The exam consists of 125 multiple-choice questions and takes 225 minutes to complete. Candidates must score at least 72% to pass.
- The Series 7 exam is a prerequisite for various securities licenses, including the Series 24, which enables candidates to supervise and manage broker activities.
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