Series 7 exam
The Series 7 exam, also known as the General Securities Representative Exam (GSRE), is a test for registered representatives. [1] The Financial Industry Regulatory Authority (FINRA) administers the exam.[2] In the United States, stockbrokers take this test to get a license to trade.[2]
Structure
The Series 7 is a six-hour exam.[2] It is held in two three-hour sessions. There are 260 questions on the test, 250 of which count toward the final score. Candidates have to score at least 72 percent to pass.
The Series 7 exam tests candidates on five functions.[2]
| Test Breakdown by Function | Number of Questions | Percentage of Test Questions |
|---|---|---|
| Seeks Business for the Broker-Dealer through Customers and Potential Customers | 68 | 27% |
| Evaluates Customers' Other Security Holdings, Financial Situation and Needs, Financial Status, Tax Status, and Investment Objectives | 27 | 11% |
| Opens Accounts, Transfers Assets, and Maintains Appropriate Account Records | 27 | 11% |
| Provides Customers with Information on Investments and Makes Suitable Recommendations | 70 | 28% |
| Obtains and Verifies Customer's Purchase and Sales Instructions, Enters Orders, and Follows Up | 58 | 23% |
Eligibility
In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO). However, new regulations passed, effective starting January 1, 2016, allow an individual to take the exam without being sponsored using an "independent" track. The sponsor company would normally pay for the exam but those taking the independent route must finance the test themselves.[2]
Registration costs
As of April 2015, the registration cost is $305.[2]
See also
- List of securities examinations
- Investment Company Products/Variable Life Contracts Representative Exam (Series 6)
- Uniform Securities Agent State Law Examination (Series 63)
- General Securities Principal Exam (Series 24)
- U.S. Securities and Exchange Commission
References
External links
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Wikibooks has a book on the topic of: NASD Series License |
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Wikibooks has more on the topic of: Series 7 exam |
