Series 7 Exam – What is it?

Series 7 Exam – What is it?

What is the Series 7 exam? It is a securities licensing exam that, when passed, qualifies an individual for the solicitation, purchase, and/or sale of securities products, such as corporate securities, municipal fund securities, options, direct participation programs, investment company products, and variable contracts. Historically, it is commonly referred to as a stockbroker license and is also known as a General Securities Representative license.

Who created this exam?

The Series 7 Exam was created and is administered by FINRA, which is the Financial Industry Regulatory Authority. FINRA is a self-regulatory organization that oversees the securities industry. The exam was created to assess the competency of an entry-level representative to perform their job. You can learn more about this exam on the FINRA website here.

Series 7 Exam Prep with Suzy

Learn more about this exam from Suzy

Suzy is our Director of Securities Exam prep. She has over 20 years of experience teaching people just like you how to pass their securities licensing exams on their first attempt. Below Suzy will guide you through an overview of this exam and share with you a great study solution you can use to PASS.

Once I pass this test can I sell securities?

Well, that depends. Have you already taken and passed the SIE exam? The SIE exam, which is also known as the Securities Industry Essentials exam is a co-requisite license with Series 7. This means you can’t do anything with just one of the two licenses. Usually, most people start with the SIE Exam, since no broker/dealer sponsorship is required to sit for it. Once they have passed the SIE exam, then an applicant will either take the Series 6 or Series 7 top-off exams. You can learn more about the SIE exam in our article about it here.

What are the vitals for the Series 7 Exam?

This exam is made up of 125 multiple-choice questions. Each question consists of four answer choices. The exam has a 3-hour and 45-minute time limit and has a 72% minimum passing score. The questions on the exam come from four outline sections of job functions of a general securities representative as follows:

  1. (F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers – 7% of exam – 9 questions
  2. (F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% of exam – 11 questions
  3. (F3) Provides Customers with Information about Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records73% of exam – 91 questions
  4. (F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions11% of exam – 14 questions

You can access the full Series 7 license exam outline here.

“Hi Suzy! I just wanted to message you to say that this morning I passed my Series 7!!!! WOHOO!! I couldn’t have done it without you, thank you so much for your hard work getting me the study materials!”
Shannon

Series 7

What is the difference between the Series 6 and Series 7 exams?

In general, if someone is going to become a stockbroker, they would take the Series 7 exam and become licensed to sell a broad range of securities products. However, if someone is an insurance agent and looking to become licensed to sell variable insurance products, they would obtain a Series 6 license.

Regardless of the route an individual goes, they must also pass the SIE exam in addition to either the Series 6 or 7 top-off exam. Keep in mind, you also need to be sponsored by a broker/dealer to take either these licensing exams.

How to pass the Series 7 exam the first time:

At PassMasters, we have an excellent video lecture-based online Series 7 test prep course. We can teach you everything you need to know to pass this exam on your first attempt. Or, maybe you studied another course and failed. Our specialty is assisting those who have taken this test and failed to prepare to pass the exam. To learn more, click this link: Series 7 Exam Prep

How do you know our Series 7 study material is the best? Check out two full-length sample lecture videos from the course below. You can also take a FREE Series 7 practice exam to see exactly how our practice/final exams are formatted. Of course, you can also check out our Series 7 Exam student testimonials. Feedback from real people who are passing the Series 7 test.

Series 7 Practice Exam Questions Explained

Each week on Wednesday, we post a new Question of the Week video on our YouTube page. Check out this QOTW video in which Suzy explains 20 exam questions. Visit our YouTube page, follow and turn notifications ON to view future QOTW videos when posted. Thanks for checking out our site. We hope this article provided you with some additional clarification about the Series 7 Exam. Good luck with your test!