The General Securities Representative Exam, commonly referred to as the Series 7 Exam, is a required exam to become a Registered Representative of a broker-dealer in the United States.
The exam is a six-hour, 260 question test (250 of which count towards the final score) that is owned, maintained and administered by the Financial Industry Regulatory Authority (FINRA), which covers a broad range of investments including stocks, bonds, options, limited partnerships, and investment company products (e.g., open- and closed-end funds). A candidate must answer 70% of the questions correctly in order to pass. Upon passing the test, one is granted a Series 7/General Securities license.
The Series 7 license is the most comprehensive of several securities licenses that permit an agent to communicate with retail investors. For this reason, many account managers, analysts, and other executives in the employ of a registered Broker/Dealer hold Series 7 licenses. To satisfy the securities dealing requirements of some states, Series 7 license holders must also hold either the Series 63 license or the Series 66 license, depending on the state the licensee works in as well as the state his/her clients reside in.
Typically, the average score of test-takers is around 73%, with around 66% of test-takers achieving a passing score. While one can study from the content outline provided by FINRA, many choose to use the materials of a third-party training vendor such as The Securities Institute of America,Inc.
As of Nov, 2009 registration cost $265, according to FINRA.
| Test Breakdown | # of Questions | % of Exam |
|---|---|---|
| Prospecting for and Qualifying Customers | 9 | 4% |
| Evaluating Customer Needs and Objectives | 4 | 2% |
| Providing Customers with Investment Information and Making Suitable Recommendations | 123 | 48% |
| Handling Customer Accounts and Account Records | 27 | 11% |
| Understanding and Explaining the Securities Markets' Organization and Participants to Customers | 53 | 21% |
| Processing Customer Orders and Transactions | 13 | 5% |
| Monitoring Economic and Financial Events, Performing Customer Portfolio Analysis and Making Suitable Recommendations | 21 | 8% |
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See also
- Bar exam
- Business School
- Certified Public Accountant
- First professional degree
- List of Securities Examinations
- MBA
- Registered Representative
- U.S. Securities and Exchange Commission
- Securities fraud
- Uniform Securities Agent State Law Examination (Series 63)
- Investment Company Products/Variable Life Contracts Representative Exam (Series 6)
- White Collar Crime
External links
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