Series 7 Exam

The Series 7 Test is an exam given by the Financial Industry Regulatory Authority (FINRA). It is for individuals who desire to be licensed stock brokers. The test is designed to measure whether a candidate has the competencies necessary to function in the capacity of a Registered Representative. It is a pass-fail test with a minimum passing score set at 70%.

  • The Series 7 Exam is known as the most comprehensive license that allows agents to interact with retail investors.
  • This is why many analysts, account managers, and others that are employed by brokers and/or dealers also hold Series 7 licenses.
  • It is important because it allows individuals the opportunity to legally do the tasks assigned to them as an employee.

The Series 7 Test is a six-hour test given in two parts.

  • There are a total of 260 questions, although 10 of the questions are for research purposes only.
  • There are often questions based on tables, charts, or technical articles. The cost is $265 and it is administered at Prometric testing sites all across the country on almost any given day.
  • An important prerequisite for the Series 7 Test is that you must obtain sponsorship either by a financial company that is a member of FINRA or a self-regulatory organization.

If you end your affiliation with the business who sponsored you, your license will remain valid for two years. If you do not return within two years, your license expires.

Series 7 Course Options

The Series 7 Test is one of the most difficult tests that you will ever take in your life. However, passing it is not impossible. Preparation for the Series 7 Test is critical. One of the biggest decisions you will face is what type of preparation and study methods you should use. There are many resources available, and it can be difficult to choose.

  • One thing to consider is your learning style. If you are the type of person that learns best when in a live teaching situation, you should consider enrolling in an “in-person” training seminar. If you learn best from reading and printed materials, order books and workbooks that include Series 7 practice tests and questions.
  • Series 7 Course Options
  • Another thing to consider is your schedule. You may be too busy to attend a live class once or twice a week. An on-demand online course would be a better option. That way you can benefit from the “live” teaching, but on your own schedule. Books, C.D.’s and videos, and practice exams and practice questions are also good for studying on your own schedule.

The Series 7 Test is not the kind of test that can be taken without preparing. Many students prepare by studying anywhere from 220-240 hours. Some study that many hours in as little as three weeks, others prepare for up to five months.

Series 7 Sample Exam

Taking a sample exam before you take The Series 7 Test is essential. The Series 7 Test is an exam given by the Financial Industry Regulatory Authority (FINRA). It is for individuals who would like to become licensed stock brokers. The test is designed to measure a candidate’s competency to function as a registered representative. It is a pass-fail test with a minimum passing score set at 70%.

  • The Series 7 Test is known as the most comprehensive license that allows agents to interact with retail investors.
  • This is why many analysts, account managers, and others that are employed by brokers and/or dealers also hold Series 7 licenses.
  • It is important because it allows individuals the opportunity to legally do the tasks assigned to them as an employee.
  • The Series 7 Test is a six-hour test given in two parts. There are a total of 260 questions, although 10 of the questions are for research purposes only. There are often questions based on tables, charts, or technical articles.
  • There are sample exams and sample test questions available in print, as well as online resources.

There are many topics included on the Series 7 Test, with each topic having different numbers of questions.

For example, almost half of the test deals with questions about providing customers with information regarding their investments and making recommendations, while approximately 2% of the test deals with questions regarding evaluation of customers’ needs. Approximately 1/5 of the test deals with understanding and explaining the securities markets to customers, while only 4% deals with recruiting and qualifying customers. Other topics include handling customer accounts, processing orders, and monitoring financial events.

Series 7 Sponsorship

In order to take the Series 7 Test, you must obtain a sponsorship. Sponsorship comes when one is employed by a firm that is a member of the Financial Industry Regulatory Authority (FINRA) or is a self-regulatory organization (SRO).

One problem often stated by individuals who desire to take the Series 7 Test, is that many job opportunities necessitate a Series 7 license, so sponsorship seems impossible. The answer to this problem is that these individuals are probably considering the wrong type of position. There are many firms who do offer sponsorship and many times they will state so right in the description of the position. The job description is usually for an “entry-level” position or “assistant” of some kind rather than a more highly paid job, requiring several years of experience.

    Series 7 Sponsorship
  • There are many firms that will hire brokers-in-training with the understanding that they will provide sponsorship once you have completed a training period.
  • This is a time to prove yourself worthy of sponsorship as well as show the company that you are not just planning to get your license and leave.

Investigate different job boards, as well as career sections of company websites to find out which positions might offer sponsorship. And don’t forget any networking possibilities that you may have. There are also websites that list Self-Regulatory Organizations and FINRA member firms to help you narrow your search.


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Last Updated: 06/13/2014

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