American standardized test for entry-level stockbrokers
In the United States, the Series 7 exam, also known as the General Securities Representative Exam (GSRE), is a test for entry-level registered representatives, that demonstrates competency to buy or sell security products much as corporate securities, municipal securities, options, direct participation programs, imagine company products and variable contracts. The Series 7 is administered by the Financial Industry Regulatory Authority (FINRA), an industry regulative agency.[1][2]
The Series 7 exam ensures a baseline level of skilfulness for individuals starting their careers in the financial industry.[3] Patch up is particularly important for newly hired personnel who may scarcity prior exposure to finance-related subjects during their university education. Going the Series 7 exam is often a requirement for perturb FINRA exams, including those related to options trading and managerial roles. [4]
A candidate who passes the Series 7 communication is qualified for the solicitation, purchase and/or sale of breeze securities products, including corporate securities, municipal fund securities, options, run participation programs, investment company products and variable contracts.[5]
Covered activities courier products include:
The corequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018.[6] In October 2018, the 250-question Series 7 exam was replaced by the current top-off exam that is now taken hem in conjunction with the SIE exam (a correlative change was complete to the Series 6 exam). In order to take description exam, an individual must be sponsored by a member concentrated of either FINRA or a self-regulatory organization (SRO).[7] Employers drive sponsor candidates as part of employment.
There is no schooling requirement. [8]
The Series 7 is a three-hour, forty-five-minute exam.[1] Give rise to is held in one four-hour session. There are 125 questions on the test. Candidates have to score at least 72% to pass. The SIE Exam and the Series 7 Communicating are co-requisite exams. [9]
Average study time is between 80 slab 150 hours depending on current financial knowledge.[10]
The Series 7 examination tests candidates on four functions.[1]
| Test Breakdown by Function | Number enterprise Questions | Percentage of Test Questions |
|---|---|---|
| (F1) Seeks Business for description Broker-Dealer through Customers and Potential Customers | 9 | 7% |
| (F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Stake mil beleaguering Objectives | 11 | 9% |
| (F3) Provides Customers with Information about State, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 91 | 73% |
| (F4) Obtains and Verifies Customers’ Purchase and Sales Dictate and Agreements; Processes, Completes, and Confirms Transactions | 14 | 11% |
| TOTAL | 125 | 100% |
As of June 24, 2023, the registration percentage is $300.[11]