The Series 7 Examination

in Examination

If you are interested in selling securities in the United States and want to enter in the world of securities properly, you must have completed the examination called Series 7. Earlier, it was known as the General Securities Representative Examination. The examination is designed by the New York Stock Exchange (NYSE) and accepted by FINRA.

The examination is administered by The Financial Industry Regulatory Authority (FINRA) - formally known as the National Association of Securities Dealers (NASD). $250 US is the examination fee - this includes a $110 examination enrollment fee, and a $90 NYSE development fee.

The Series 7 examination is mandatory to clear before participating in other various principal examinations offered by FINRA. The following series examinations are also covered in the Series 7 examination:

-Series 6
-Series 22
-Series 42
-Series 52
-Series 62

Thus, when you clear this examination, you do not need to take these series examinations separately.

An individual who is participating in the examination must be sponsored by a firm who is a member of FINRA, or a Self-Regulatory Organization (SRO). There is no citizenship or educational requirements.

The duration of the examination is 6 hours - two 3 hours sessions - a compulsory break of 30 to 60 minutes between the two sessions.

The examination is divided into two parts - both parts are mandatory to attempt. The examination contains 260 questions - 125 questions for each part. There are 10 pre-test questions, but they do not count towards the final grading.

All the questions are multiple choice questions (MCQs) and the passing score is 70%.
The test questions breakdown is as follows:

-Prospecting for and Qualifying Customers - 9 questions

-Evaluating Customer Needs and Objectives - 4 questions

-Providing Customers with Investment Information and Making Suitable Recommendations - 123

-Handling Customer Accounts and Account Records - 27 questions

-Understanding and Explaining the Securities Markets' Organization and Participants to Customers - 53 questions

-Processing Customer Orders and Transactions - 13 questions

-Monitoring Economic and Financial Events, Performing Customer Portfolio Analysis and Making Suitable Recommendations - 21 questions

Once an individual clears the examination, he/she is granted a Series 7 license. After passing the Series 7 examination, the individual can sell any type of securities products except the commodities futures - to sell this, the individual has to clear Series 3 examination.

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Zafer Ahmed has 1 articles online

Zafar Ahmed is associated with which offers Securities Compliance Training.

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The Series 7 Examination

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This article was published on 2010/04/20