Series 7 exam

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

Structure

The Series 7 is a six-hour exam.[2] 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.

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

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%

In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO).[3]

Registration costs

As of April 2015, the registration cost is $305.[2]

See also

References

External links

Wikibooks has a book on the topic of: NASD Series License
Wikibooks has more on the topic of: Series 7 exam
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