In the United States, the Series 7 exam, also known as the General Securities Representative Exam (GSRE), is a test for entry-level registered representatives, that demonstrates competency to buy or sell security products such as corporate securities, municipal securities, options, direct participation programs, investment company products and variable contracts. The Series 7 is administered by the Financial Industry Regulatory Authority (FINRA), an industry regulatory agency.[1][2]
The Series 7 exam ensures a baseline level of proficiency for individuals starting their careers in the financial industry.[3] It is particularly important for newly hired personnel who may lack prior exposure to finance-related subjects during their university education. Passing the Series 7 exam is often a requirement for other FINRA exams, including those related to options trading and managerial roles. [4]
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Transcription
Permitted activities
A candidate who passes the Series 7 exam is qualified for the solicitation, purchase and/or sale of all securities products, including corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts.[5]
Covered activities and products include:
- public offerings and/or private placements of corporate securities (stocks and bonds),
- rights,
- warrants,
- mutual funds,
- money market funds,
- unit investment trusts (UITs),
- exchange-traded funds (ETFs),
- real estate investment trusts (REITs),
- options on mortgage-backed securities,
- government securities,
- repos and certificates of accrual on government securities,
- direct participation programs,
- venture capital,
- sale of municipal securities and
- hedge funds
Eligibility
The corequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018.[6] In October 2018, the 250-question Series 7 exam was replaced by the current top-off exam that is now taken in conjunction with the SIE exam. (A correlative change was made to the Series 6 exam.). In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO).[7] Employers will sponsor candidates as part of employment.
There is no education requirement. [8]
Structure
The Series 7 is a three-hour, forty-five-minute exam.[1] It is held in one four-hour session. There are 125 questions on the test. Candidates have to score at least 72% to pass. The SIE Exam and the Series 7 Exam are co-requisite exams. [9]
Average study time is between 80 and 150 hours depending on current financial knowledge.[10]
The Series 7 exam tests candidates on four functions.[1]
| Test Breakdown by Function | Number of Questions | Percentage of Test Questions |
|---|---|---|
| (F1) Seeks Business for the Broker-Dealer through Customers and Potential Customers | 9 | 7% |
| (F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 11 | 9% |
| (F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 91 | 73% |
| (F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions | 14 | 11% |
| TOTAL | 125 | 100% |
Registration costs
As of June 24, 2023, the registration cost is $300.[11]
See also
- List of securities examinations
- Series 6 exam
- Uniform Securities Agent State Law Exam (Series 63)
- General Securities Principal Exam (Series 24)
- U.S. Securities and Exchange Commission
References
- ^ a b c "Series 7 Examination". FINRA. Retrieved 2015-03-16.
- ^ "Series 7 Examination". www.sec.gov. Retrieved 2023-06-25.
- ^ Hicks and Stalter, Coryanne and Kate (19 August 2021). "An Advisor's Guide to the Series 7 License".
- ^ CPA, Sam Swenson, CFA. "What Is Series 7?". The Motley Fool. Retrieved 2023-06-25.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ "Series 7 – General Securities Representative Exam | FINRA.org". www.finra.org. Retrieved 2023-06-25.
- ^ "FINRA Administered Qualification Examinations". FINRA. Retrieved 2015-03-18.
- ^ "Form U10 | FINRA.org". Archived from the original on 2015-04-11.
- ^ "Frequently Asked Questions About the FINRA Series 7 Exam". Kaplan Financial Education. 9 April 2019. Retrieved 24 June 2023.
- ^ "SIE Exam |SIE Exam Tutor".
- ^ "7 Strategies for Passing the Series 7 FINRA Qualifications Exam". Kaplan Financial Education. 8 April 2019. Retrieved 24 June 2023.
- ^ "Qualification Exams | FINRA.org". www.finra.org. Retrieved 2023-06-24.
External links
- Financial Industry Regulatory Authority
- FINRA Registration and Examination Requirements
- Securities Industry Essentials Exam
This page was last edited on 21 January 2024, at 05:11