Series 7 exam

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

The Series 7 is a three hour and forty five minute exam.[2] It is held in one four-hour session. There are 125 questions on the test. Candidates have to score at least 72 percent to pass. As above, candidates 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 11 9%
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 91 73%
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 14 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

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

See also

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