Series 7 exam

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The Series 7 exam, also known as the General Securities Representative Exam (GSRE), is a test for entry-level registered representatives. [1] The Financial Industry Regulatory Authority (FINRA) administers the exam.[2] In the United States, financial professionals take this test to become qualified to purchase and/or sell security products such as: corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts.

The prerequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018.

Structure[edit]

The Series 7 is a four-hour exam.[2] It is held in one four-hour session. There are 135 questions on the test, 125 of which count toward the final score. Candidates have to score at least 72 percent to pass. You must also pass the SIE exam to be registered with the Series 7. The SIE Exam and the Series 7 Exam are co-requisite exams. [3]

The Series 7 exam tests candidates on four functions.[2]

Test Breakdown by Function Number of Questions Percentage of Test Questions
(F1) Seeks Business for the Broker-Dealer through Customers and Potential Customers 9 7%
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 14 9%
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73 73%
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11 11%
TOTAL 125 100%

In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO).[4]

Registration costs[edit]

As of October 1, 2018, the registration cost is $245.[2]

See also[edit]

References[edit]

  1. ^ "FINRA Administered Qualification Examinations". FINRA. Retrieved 2015-03-18.
  2. ^ a b c d "Series 7 Examination". FINRA. Retrieved 2015-03-16.
  3. ^ https://www.financeexamtutor.com/series-7-sie
  4. ^ http://www.finra.org/industry/formu10

External links[edit]