Series 7
Candlefocus EditorIn the United States, the Series 7 exam is a comprehensive test that determines whether or not an individual is competent to serve as a registered representative in the securities industry. The exam tests an individual’s knowledge of the different types of securities products, as well as his or her ability to evaluate customer accounts and propose suitable investments. Passing the Series 7 exam is essential for those looking to become involved in the sale, buy-side, and underwriting of securities products, including stocks, bonds, mutual funds, and ETFs.
The exam is divided into two, three-hour sections consisting of 125 multiple-choice questions. The sections cover a range of topics aimed at testing an individual’s understanding of the various securities products, their associated risks, and the regulatory framework. The topics include investment risk analysis, taxation, equity and debt instruments, packaged securities, options, and retirement plans.
The Series 7 Exam is administered by FINRA (the Financial Industry Regulatory Authority). A candidate can only take the exam after completing an approved study course and finding a sponsor firm to sponsor their licensing application. The sponsoring firm must be an approved member of the FINRA.
Successful candidates must maintain their license by completing continuing education courses on a regular basis. Annual courses are available to update broker needs on new regulations and changes in the industry. Additionally, all registered representatives must complete ongoing training to stay compliant with current rules and regulations.
Clearing the Series 7 exam and obtaining the license is very important for individuals hoping to enter and be successful in the securities industry. The exam is often considered to be among one of the most important tests for security traders and salesmen as it tests knowledge as well as an individual’s ability to evaluate customer accounts and propose suitable investments. Therefore, individuals hoping to build a successful career in this field must take their preparation for the exam seriously if they want to succeed.
To conclude, the Series 7 exam is an important exam designed to test an individual’s knowledge and competency in the securities industry. It is essential to obtain this license if one wants to pursue a career in the field as it demonstrates one’s knowledge and understanding of the various securities products and their associated risks. Investing effort in preparation can lead to great rewards when it comes to clearing this exam and licensing oneself as a registered representative in the securities industry.