What is the Series 7 Exam?

The Series 7 Exam is officially known as the General Securities Representative Exam. This is the exam that must be taken in order for someone to become an official Registered Representative of a broker-dealer in the USA. The person taking the exam will have qualifications that are needed to be able to make various traders with corporate securities. This excludes commodities and futures however.Konseling Online  The exam is held by the Financial Industry Regulatory Authority (FINRA)

The Series 7 Exam must also be taken to enable a member firm associate to be able to register with FINRA. As expected, results must be sufficient for a pass in the exam before any other principal FINRA exams can be taken.

The exam itself goes for six hours. It contains 260 questions in total and 250 of these questions count towards the final score. The exam is maintained and owned by NASD (National Association of Securities Dealers).

The types of investments covered in the exam include:
– Bonds
– Stocks
– Options
– Open and closed-end funds
– Limited partnerships

To gain a pass, the exam taker must receive a score of at least 70%. The license granted to all candidates who pass is the Series 7 / General Securities License. Universitas Swasta di Bandung This license is a powerful one compared with other securities licenses as it gives the agent permission to communicate with retail investors. Due to this fact many registered broker/dealer analysts, account managers and executives have a Series 7 license. Some states will require license holders to also have the Series 66 or Series 63 license, depending on which state the clients reside in.

The test consists of almost 50% of questions on providing customers with investment information.

Evaluating customer needs and objectives takes up only 2% of the exam with just 4 questions on this topic, whilst 21% of the test covers the topic of understanding and explaining securities markets organization and participants to customers and there are over 50 questions on this subject.

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