Series 7 exam
In the United States, the Series 7 exam, also known as the General Securities Representative Exam, is a test for entry-level registered representatives, that demonstrates competency to buy or sell security products such as corporate securities, municipal securities, options, direct participation programs, investment company products, and variable contracts. The Series 7 is administered by the Financial Industry Regulatory Authority, an industry regulatory agency.
The Series 7 exam ensures a baseline level of proficiency for individuals starting their careers in the financial industry. It is particularly important for newly hired personnel who may lack prior exposure to finance-related subjects during their university education. Passing the Series 7 exam is often a requirement for other FINRA exams, including those related to options trading and managerial roles.
Permitted activities
A candidate who passes the Series 7 exam is qualified for the solicitation, purchase and/or sale of all securities products, including corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts.Covered activities and products include:
- public offerings and/or private placements of corporate securities,
- rights,
- warrants,
- mutual funds,
- money market funds,
- unit investment trusts,
- exchange-traded funds,
- real estate investment trusts,
- options, options strategies and mortgage-backed securities,
- government securities,
- repos and certificates of accrual on government securities,
- direct participation programs,
- venture capital,
- sale of municipal securities and
- hedge funds
Eligibility
There is no education requirement.
Structure
The Series 7 is a three-hour, forty-five-minute exam. It 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 Exam are co-requisite exams.Average study time is between 80 and 150 hours depending on current financial knowledge.
The Series 7 exam tests candidates on four functions.
| Test Breakdown by Function | Number of Questions | Percentage of Test Questions |
| Seeks Business for the Broker-Dealer through Customers and Potential Customers | 9 | 7% |
| Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 11 | 9% |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 91 | 73% |
| Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions | 14 | 11% |
| TOTAL | 125 | 100% |