Don’t waste your time with poorly rewritten study guides. Check out our recommended study guide package that includes a comprehensive guide, plus over 1700 of practice exam questions. The practice exams will come on a software CD, so you can track your progress and take a break from reading a book.

Make sure you know how to study effectively so you can make the best use of your time, and pass the exam the first time.

Basic Info

The series 7 exam is six hours long, broken into two section. This long length obviously means that it is very comprehensive, and will cover a lot of material. The multiple choice questions are not easy, and can be worded tricky just to try to throw you off. You will need to get at least a 70% on the exam to pass. The best way to pass the test with ease is to study hard, and to study efficiently. You do not want to have to retake the exam. This would result in a waiting period and having to pay the fee again. Here are some of the different, effective ways to study for the series 7 exam.

Study Guides

The best way to study for the series 7 is to get a good study guide, and go over it thoroughly. A recommended study guide is Pass the 7. This resource will cover everything you need to know on the exam. It can be a lot of material to cover, so pace yourself. Do not try to cram. It is easy to get burned out if you try burning through your studying all at once.

Go through the guide with a highlighter and mark any sections that you do not understand. Then you can go back the next study session and go over this highlighted area again. Repeat this every study session. Repetition is the key to memory.

Flash Cards

A good additional supplement for studying is to use flash cards. Taking a break from reading a study guide can be a relief, and this is where flash cards can come into play. The best way to learn is through repetition, and flash cards are great for this. The best things to study on flash cards are vocabulary terms and formulas. Complex concepts will not work as well.

Practice Exams

Another good studying supplement is to take practice exams. You can get a good idea of how questions are worded and formatted. That way you will know what to expect on the real exam, and won’t get thrown for a loop. When you are exhausted from studying and need a break from your guide book, taking a practice exam can be a good thing to do. The best option is getting a practice exam software, because you can track your progress and record your results.

The series 7 exam is also known as the stock brokers exam, but it is required for more than just brokers.

The license is mandatory for all securities agents. It certifies them as knowledgeable with the varied types of corporate securities. These include such things as options, stocks, municipal securities and other types of investments.

Those who pass the exam become a Registered Representative for the broker-dealer they work for. An individual can then legally advise clients, solicit transactions, execute transactions for clients, and will have the legal power of an agent. For this reason, the series 7 is the most comprehensive of the securities exams.

The license requirement came from the need to assure the general public of the security of their money. Another reason for the license was to put a regulatory body in place. The regulator and administer of the exam is FINRA.

The exam also serves a prerequisite for other, more advanced, exams.

Testing Details

• Requirements: Sponsorship by a financial company who is a member of FINRA.
• Fees: $265.
• Format: Multiple choice questions
• Number of Questions: 260 (10 are pretest questions which are not graded)
• Time Limit: 6 hours total. Composed of two 3 hour sessions.
• Passing Score: 70% or higher
• Exam Dates: Any weekday
• Exam Locations: Find a local testing center.
• Exam Scheduling: Schedule an exam

More Information

Here is a breakdown of Series 7 questions.
Here are some sample questions.
Here is a detailed PDF from FINRA about the Series 7.

FAQ

Do I need to bring anything with me when I take the exam?
The testing center will provide everything you need to complete the exam. This includes scratch paper, a calculator, and a pencil.

Can I re-take the exam if I fail the first time?
Yes, your sponsor can reopen to window to take the exam, but you must wait a minimum of 30 days. After failing 3 times, you must wait six months. A $200 fee will also be required for each re-take.

Will my license ever expire?
After leaving your sponsoring firm, you have two years to gain employment from a new FINRA member. If two years pass without employment, you will then have to retake the exam.

What is the average pass rate of the exam?
On average, 66% of test-takers pass the exam. The average score of the exam is close to 73%.

The prerequisite for taking the series 7 exam is being sponsored. This means you are employed and backed by a company who is a member of FINRA.

After being employed for a minimum of four months you can register to take the series 7 exam. This helps the applicant in gaining some fundamental skills, which he or she will likely be assessed on within the exam.

Once sponsored, you will need to fill out a Form U-4 and get your fingerprints taken.  The sponsoring firm will then mail the form and fingerprints to FINRA. Soon after, a confirmation will be sent back to your sponsor. Then a window opens for you to schedule your exam.

While this is requirement is good in theory, it can also be troublesome for those aspiring to take the series 7. The problem is many firms will only hire those with a license already. These dealer-brokers do not want to pay for training and costs associated with new employees taking the exam. So they prefer to hire those who have a license already. This leaves those without a license unable to  get a job, and thus sponsorship.

Here are some licenses that do not require sponsorship. These can help buffer your resume, and will increase your odds of getting hired by a sponsor. Then you can take the series 7 exam.

• Series 3
• Series 63
• Series 65

FAQ

What firms are FINRA members?
Here is a list of all the members of FINRA.

Can I take the Series 7 Exam without sponsership?
Unfortunately, no.

What if I lose employment with my sponsoring firm?
Your license will expire after two years, unless you find a new employer who is a FINRA member.

Are there any other prerequisites for the Series 7?
No, but there is a fee for taking the exam.

Here is a breakdown of the types of questions you will be asked on the Series 7 Exam.  Information comes straight from FINRA’s handbook.  For actual examples of exam questions go here.

By understanding what type of questions you will see on the exam, you will be able to study better by focusing on certain areas. Many of the questions are concentrated into only a few sections, so you should spend the most time studying these sections. Studying efficiently will help you make the best use of your time.

Numbers correspond to the pie chart.

1) Seeks business for the broker-dealer through customers and potential customers  9 questions

2) Evaluates customers in terms of financial needs, current holdings, and available investment capital, and helps them identify their investment objectives  4 Questions

3) Provides customers and prospective customers with information on investments and makes suitable recommendations 123 Questions

4) Opens, transfers, and closes customer accounts and maintains appropriate  account records  27 Questions

5) Explains the organization, participants, and functions of various securities markets and the principal factors that affect them  53 Questions

6) Obtains and verifies the customer’s purchase and sale instructions, enters orders, and follows up on completion of transactions  13 Questions

7) Monitors the customer’ s portfolio and makes recommendations consistent with changes in economic and financial conditions as well as the customer’s needs and objective  21 Questions

These series 7 sample questions were taken straight from FINRA’s booklet. The questions will give you an idea of question format and content.

For more practice exam questions, with over 1700 questions and detailed explanations consider purchasing this Series 7 Practice Questions CD.

1) Closed-Stem

The stem (the part that poses the question) is a complete sentence, and thus concludes with a question mark. The options (answer choices) may be complete or incomplete sentences.

Click for an Example

2) Open-Stem (Sentence Completion)

The stem is an incomplete statement, and the options represent conclusions to the sentence.

Click for an Example

 3) Most/Least/Best

This case of the multiple-choice item requires selecting an option that is either better or worse than the others. The basis on which the evaluation is to be made is stated in the stem.

Click for an Example

 4) Except or Not

The “EXCEPT” case usually is used when the task is to select the response option that is an exception to the principle or rule stated in the stem. If it is clearly more straightforward or less awkward to use “not,” rather than “except,” this is done. In either case, the stem may be open or closed.

Click for an Example

5) Complex Multiple-Choice (“Roman Numeral” Format)

This type of question is used in two ways. In the following example, the task is to determine the correct sequence of a set of events or the correct ranking of a set of items from high to low.

Click for an Example

A second way in which the Roman numeral format is used is when more than one of the options may be a correct response.

Click for an Example

If the stem does not state that only two of the Roman numeral options are true, the word “only” is included at the end of each lettered response option that does not include all of the Roman numerals, as in the example below.

Click for an Example

More Practice Questions

Consider purchasing a practice exam CD-ROM for further examples.

Get a Comprehensive Study Guide

Don’t try to piece together study material from the internet or peers. There is a lot of information covered on the exam and you might be missing some crucial details. Don’t put this to chance, it costs over $200 to re-take the exam. A good study guide will cost you less than $100.

Complete the Study Guide

Make sure you understand each section. Read the material and do all the practice questions. This way you get a complete understanding of exam content and format. Skipping material can come back to haunt you while taking the exam. Make full use of your resources.

Highlight

Highlighting is a very simple and common studying technique. Even though it is common, many people still do not make use of it. Anything you do not understand right away, highlight. Come back and revisit it. We learn best through repetition.

Highlighters with sticky flags for marking pages are great, especially for long study guides. You can quickly find your highlights without flipping through pages.

Use Flashcards

As you are going through your study guide, make some flashcards. We learn best through repetition, and flashcards are a great tool for this.

Read Each Question Twice

The exam questions are written to be tricky, and the format can be confusing. Read each question at least twice to make sure you fully grasp what is being asked.

Understand Concepts

Do not just memorize the practice questions. Try to understand the theory and concepts behind the questions. That is actually learning the material. Memorizing can work, but relying heavily on it can lead to problems if your brain stalls out.

Don’t cram

Take your time and learn the material in a controlled pace. There is a lot of information in the study guides and it will take a while to fully grasp. Let the information sink in, and then revisit it. Skimming will almost surely result in forgetting the material by exam time.

Familiarize yourself with exam conditions

Know the general information about the exam. Don’t be caught off guard, it can through you off your game. Find out the number of questions, time limits, format, exam location and other details before you register.

Don’t over study

This may seem like bad advice, but you only need a 70% to pass. Once you feel you are comfortable with the material, schedule your exam. Getting a 100% is not going to boost your GPA, and your mom is not going to put the test on your refrigerator. There is nothing wrong with getting anything over a 70%.

Mentioned in this article:
Series 7 flashcards
Series 7 study guides
Highlighters with sticky flags

Everyone knows that flashcards are a great way to study. From kindergarten to college, and beyond. It is much more interactive and engaging than staring at a page full of text. Combined with a good study guide, you will crush the series 7.

The reasons why flash cards work so well is because of repetition, and repetition is the key to memorization. If you are only reading a study guide, you may only few material once. This can result in forgetting, and going blank on the test.

Make Your Own Cards

If you are on a budget you can make your own series 7 flash cards. Take your study guide and copy the important information onto flashcards. Flash cards are best for vocabulary, lists, and formulas. Complex concepts should be left out. Even though this can be time consuming, it will save you some money. If you have a friend also trying to get his series 7, you can split up the task of creating the cards.

Purchase Premade Cards

Another option is to just buy the flashcards premade. You can get a comprehensive set for the series 7 Exam here. Buying flashcards allows you get going and start studying immediately. It can save your wrist some pain too.

 
 
Whether you choose you make your own or purchase some, flashcards are an awesome studying tool that you should make use of.

Before you schedule your Series 7 exam date, make sure you are familiar with the exam details.

Sponsoring

To signup to take the series 7 exam you must first be sponsored by a member of FINRA. Being sponsored is the only prerequisite for taking the exam.

Scheduling the Exam

To schedule an exam appointment you can go through Thomson Prometric Testing Centers or Pearson Professional Center. To find the location closest and most convenient for you, use the exam location finder. Exams can be scheduled for any weekday. To schedule online:

• Thomson Prometric Testing Center
• Pearson Professional Center

FAQ

What if need to reschedule or cancel my exam?

• If you cancel or reschedule over two weeks in advance, there is no fee
• If you cancel or reschedule three to ten days in advance there is a fee of $132.50
• If you cancel or reschedule with less than three days away from your exam date, you will be charged the full $265

What if I am late to my exam?
If you arrive so late that you affect the testing center’s schedule, you will be charged the cancellation fee.

After obtaining the Series 7 license, most likely an individual will work as a sales assistant at their broker-dealer. In this position they will gain a lot of skills and knowledge regarding the financial field. This will then prepare them to move up to high positions. A sales assistant will start at close to $40,000 a year, and salaries only increase from there.

Many people take the exam to become a stockbroker. This is why the exam has been given the name “the stockbroker’s exam”. Read more about being a stockbroker here.

After working in the field for while, salaries can grow well into the six digits. If you put in the effort, taking the series 7 can be the gateway into a very rewarding career. Professions include:

• Stock Brokers
• Account Managers
• Partners
• Sales Assistants
• Investment Assistants
• Other Investment Banking and Private Banking Positions

These are just the common careers for people with a series 7 license. There are many more higher up professions that require the license within the financial field.