SERIES 7 Exam: The General Securities Representative Exam of America

The series 7 exam, also known as the General Securities Representative Exam, is one of the leading financial tests administered by the Financial Industry Regulatory Authority (FINRA), America’s largest independent regulator of securities and brokerage firms, and registered securities representatives.

In American securities industry sector, FINRA plays a crucial role in the administration of financial tests that allow the eligible financial professionals to become registered representatives of the general securities. FINRA administers a wide range of financial tests including the series 6 exam for the qualified financial professionals who aspire to make a professional career in American securities industry.

The series 7 exam is a much more advanced and complex financial test than the series 6 exam. The series 7 exam is conducted for qualified financial professionals who wish to sell a large range of financial products such as stocks and securities, bonds, futures and options, limited partnerships, open- and closed-end funds and similar other financial products.

The series 7 exam takes about six hours to complete and consists of 260 multiple choice questions, out of which only 250 questions are counted towards final score. Passing score is 70 to 75 per cent and hence the applicants are required to prepare seriously before appearing for the series 7 exam. The test-takers with qualifying scores are awarded a Series 7 General Securities license that makes them eligible for selling a wide range of financial products. Test registration fee is US $265.

The series 7 test consists of seven topics such as Prospecting for and Qualifying Customers (9 questions); Evaluating Customer Needs and Objectives (4 questions); Providing Customers with Investment Information and Making Suitable Recommendations (123 questions); 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); and Monitoring Economic and Financial Events, Performing Customer Portfolio Analysis and Making Suitable Recommendations (21 questions).

Since questions from the topics “Providing Customers with Investment Information and Making Suitable Recommendations” and “Understanding and Explaining the Securities Markets’ Organization and Participants to Customers” form more than half of the total questions asked during the test, applicants are advised to focus on these topics while preparing for the series 7 exam.


robyjose