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%.
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