Series 7 Exam

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The General Securities Representative Exam (GSRE) is a test for registered representatives. The test is also known as the Series 7 Exam.[1] The Financial Industry Regulatory Authority (FINRA) administers the exam.[2] In the United States, stockbrokers sit in this test to get a license to trade.[1]

Structure[edit]

The GSRE is a six-hour exam.[3] It is held in two three-hour sessions. There are 260 questions on the test, 250 of which count toward the final score. Candidates have to score at least 72 percent to pass.[4]

The Series 7 Exam tests candidates on five functions.[1]

Test Breakdown by Function Number of Questions Percentage of Test Questions
Seeks Business for the Broker-Dealer through Customers and Potential Customers 68 27%
Evaluates Customers’ Other Security Holdings, Financial Situation and Needs, Financial Status, Tax Status, and Investment Objectives 27 11%
Opens Accounts, Transfers Assets, and Maintains Appropriate Account Records 27 11%
Provides Customers with Information on Investments and Makes Suitable Recommendations 70 28%
Obtains and Verifies Customer’s Purchase and Sales Instructions, Enters Orders, and Follows Up 58 23%

Eligibility[edit]

In order to take the exam an individual must be sponsored by a member firm of either FINRA or a self-regulatory organisation (SRO).[1]

Registration costs[edit]

As of July 2014, the registration cost is $290.[3]

See also[edit]

References[edit]

  1. ^ a b c d "General Securities Representative Qualification Examination". Financial Industry Regulatory Authority. Retrieved 2014-07-06. 
  2. ^ "Series 7 Examination". U.S. Securities and Exchange Commission. Retrieved 2014-07-06. 
  3. ^ a b "FINRA Administered Qualification Examinations". FINRA. Retrieved 2014-07-06. 
  4. ^ "Series 7 Exam". Stockbroker 101. Retrieved 2014-07-06. 

External links[edit]