If you are looking to enter the financial services industry, The Series 7 General Securities Representative Exam is a critical step.
Mostly, it includes individuals engaged in the sale, purchase, and solicitation of various financial securities products.
Those securities products includes –
- ETFs, and
- municipal securities.
Passing this exam is a significant achievement for those pursuing careers in financial services.
Here’s a comprehensive overview of the Series 7 online course and how to prepare for it.
Table of Contents
Series 7 Exam – What to Know?
The Series 7 exam is administered by the Financial Industry Regulatory Authority (FINRA).
It is designed to assess whether an individual is qualified to work as a Registered Representative.
Professionals who pass this exam are authorized to work with both individual and institutional investors, providing guidance on investments in various types of securities.
What is Series 7 license?
The Series 7 license is a crucial qualification for individuals working in the financial services industry.
It’s administered by the Financial Industry Regulatory Authority (FINRA).
Further, it signifies that the holder is authorized to engage in various activities related to securities.
Key details about the Series 7 license:
- Series 7 Exam: To obtain the Series 7 license, individuals must successfully pass the Series 7 exam.
This exam consists of 125 multiple-choice questions and has a time limit of 225 minutes. To pass, candidates need to score at least 72% correct answers.
- Sponsorship Requirement: One significant requirement for obtaining the Series 7 license is that candidates must be sponsored by a FINRA member firm.
This sponsorship demonstrates that the individual is associated with a registered financial institution.
- Series 65 Comparison: Unlike the Series 65 license, which allows individuals to join a registered investment advisory firm without sponsorship, the Series 7 license necessitates sponsorship by a FINRA member firm.
- Securities Industry Essentials (SIE) Exam: Before attempting the series 7 online course, candidates must first pass the Securities Industry Essentials (SIE) exam.
The SIE exam evaluates fundamental knowledge of the securities industry, covering topics such as markets, regulations, risk management, and prohibited actions.
It serves as a prerequisite for the Series 7 and other securities licenses.
In summary, the Series 7 license is a critical credential for professionals in the financial services sector, enabling them to engage in activities related to securities.
To obtain this license, candidates must pass the Series 7 exam, be sponsored by a FINRA member firm, and first pass the Securities Industry Essentials (SIE) exam, which serves as a foundational knowledge assessment for the industry.
Subjects Covered on the Series 7 Exam
The content of the Series 7 classes is outlined by FINRA in its General Securities Representative (Series 7) Content Outline. The exam questions are categorized into four job functions:
Seeks Business for the Broker-Dealer From Current and New Customers (7%):
This section focuses on public communication and regulations related to advertising materials. It addresses rules and regulations that are of particular relevance to investment sales professionals like brokers and securities dealers.
Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives (9%):
This function covers providing customers with information about account types, disclosures, and restrictions. Candidates should have the knowledge of –
- opening brokerage and advisory accounts,
- managing client profiles, and
- obtaining necessary approvals.
Delivers Investment Information, Facilitates Asset Transfers, Offers Recommendations, and Ensures Record-Keeping (73%):
This constitutes the most comprehensive segment of the examination, encompassing a broad spectrum of securities laws and industry regulations pertaining to –
- product choices,
- investment strategies, and
- customer profiles.