Exam Objectives:
The Series 7 exam, also known as the General Securities Representative Examination, is a test that qualifies individuals to sell a broad range of securities. The exam is designed to measure the candidate's knowledge of securities industry regulations and industry practices. The exam is administered by the Financial Industry Regulatory Authority (FINRA) and includes the following objectives:
- Seeks business for the broker-dealer through customers and potential customers
- Evaluates customers' other security holdings, financial situation and needs, financial status, tax status, and investment objectives
- Open accounts, transfers assets, and maintains appropriate account records
- Provides customers with information on investments and makes suitable recommendations
- Obtains and verifies customers' purchase and sales instructions and agreements
- Processes, completes, and confirms transactions
- Follows up with customers and confirms transactions after completion
Exam Details:
The Series 7 exam is a multiple-choice exam that consists of 125 questions. Candidates are given 3 hours and 45 minutes to complete the exam. The exam is delivered through a computer-based system and can be taken at a Prometric testing center. The passing score for the Series 7 exam is 72%, and the cost of the exam is $245.
Who should take the exam?
The Series 7 exam is designed for individuals who want to become General Securities Representatives. This includes those who want to sell a wide range of securities, including stocks, bonds, mutual funds, and options. The exam is required for individuals who want to become registered representatives with a FINRA member firm. It is also required for individuals who want to become registered with the Securities and Exchange Commission (SEC) as an investment advisor representative.
Related Books:
There are several books that can help candidates prepare for the Series 7 exam. Some of these books include:
- Series 7 Exam For Dummies, by Steven M. Rice
- Pass the 7: A Training Guide for the FINRA Series 7 Exam, by Robert Walker
- Series 7 Study Guide: Test Prep Manual & Practice Exam Questions, by Series 7 Exam Prep Team
- The Solomon Exam Prep Guide: Series 7—General Securities Representative Exam, by Karen Solomon
Candidates may also want to consider taking a Series 7 exam prep course, which can provide additional study materials and practice exams.
Overall, passing the Series 7 exam requires a comprehensive understanding of securities industry regulations and practices. Candidates should review the exam objectives and related books carefully, and should consider taking a prep course to increase their chances of success.