View source for Series 7 exam

{{Short description|American standardized test for entry-level stockbrokers}}
In the [[United States]], the '''Series 7 exam''', also known as the '''General Securities Representative Exam''' ('''GSRE'''), is a test for entry-level [[registered representative (securities)|registered representatives]], that demonstrates competency to buy or sell security products such as [[Security (finance)|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]] (FINRA), an industry regulatory agency.<ref name="FINRA">{{cite web|url=http://www.finra.org/industry/series7|title=Series 7 Examination|publisher=FINRA|date=|accessdate=2015-03-16}}</ref><ref>{{Cite web |title=Series 7 Examination |url=https://www.sec.gov/answers/series7.htm |access-date=2023-06-25 |website=www.sec.gov}}</ref>

The Series 7 exam ensures a baseline level of proficiency for individuals starting their careers in the financial industry.<ref>{{Cite web |last=Hicks and Stalter |first=Coryanne and Kate |date=19 August 2021 |title=An Advisor's Guide to the Series 7 License |url=https://money.usnews.com/financial-advisors/articles/series-7-exam-can-be-a-gateway-to-many-financial-services-careers}}</ref> 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. <ref>{{Cite web |last=CPA |first=Sam Swenson, CFA |title=What Is Series 7? |url=https://www.fool.com/terms/s/series-7/ |access-date=2023-06-25 |website=The Motley Fool |language=en}}</ref>

== 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.<ref>{{Cite web |title=Series 7 – General Securities Representative Exam {{!}} FINRA.org |url=https://www.finra.org/registration-exams-ce/qualification-exams/series7 |access-date=2023-06-25 |website=www.finra.org}}</ref>

Covered activities and products include:

* public offerings and/or private placements of corporate securities (stocks and bonds),
* rights,
* warrants,
* mutual funds,
* money market funds,
* unit investment trusts (UITs),
* exchange-traded funds (ETFs),
* real estate investment trusts (REITs),
* 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 fund]]s

== Eligibility ==
The corequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018.<ref name="FIN">{{cite web|url=http://www.finra.org/industry/qualification-exams|title=FINRA Administered Qualification Examinations|publisher=FINRA|date=|accessdate=2015-03-18}}</ref> In October 2018, the 250-question Series 7 exam was replaced by the current top-off exam that is now taken in conjunction with the SIE exam (a correlative change was made to the Series 6 exam). In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a [[self-regulatory organization]] (SRO).<ref>{{cite web |title=Form U10 {{!}} FINRA.org |url=http://www.finra.org/industry/formu10 |url-status=dead |archive-url=https://web.archive.org/web/20150411090919/http://www.finra.org/industry/formu10 |archive-date=2015-04-11}}</ref> Employers will sponsor candidates as part of employment. 

There is no education requirement. <ref>{{Cite web |date=9 April 2019 |title=Frequently Asked Questions About the FINRA Series 7 Exam |url=https://www.kaplanfinancial.com/resources/getting-started/frequently-asked-questions-about-the-finra-series-7-exam |access-date=24 June 2023 |website=Kaplan Financial Education}}</ref>

== Structure ==
The Series 7 is a three-hour, forty-five-minute exam.<ref name="FINRA" /> 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. <ref>{{Cite web|url=https://www.financeexamtutor.com/series-7-sie|title=SIE Exam &#124;SIE Exam Tutor}}</ref>

Average study time is between 80 and 150 hours depending on current financial knowledge.<ref>{{Cite web |date=8 April 2019 |title=7 Strategies for Passing the Series 7 FINRA Qualifications Exam |url=https://www.kaplanfinancial.com/resources/getting-started/7-strategies-for-passing-the-series-7-finra-exam |access-date=24 June 2023 |website=Kaplan Financial Education}}</ref>

The Series 7 exam tests candidates on four functions.<ref name="FINRA" />

{| class="wikitable"
|-
! 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%
|-вмыХ
| (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%
|}

== Registration costs ==

As of June 24, 2023, the registration cost is $300.<ref>{{Cite web |title=Qualification Exams {{!}} FINRA.org |url=https://www.finra.org/registration-exams-ce/qualification-exams |access-date=2023-06-24 |website=www.finra.org}}</ref>

==See also==

* [[List of securities examinations]]
* [[Series 6 exam]]
* [[Uniform Securities Agent State Law Exam]] (Series 63)
* [[General Securities Principal Exam]] (Series 24)
* [[U.S. Securities and Exchange Commission]]

== References ==
{{reflist}}

== External links ==
{{wikibooks|NASD Series License}}
{{wikibooks}}
* [https://www.finra.org/#/ Financial Industry Regulatory Authority]
* [https://www.finra.org/registration-exams-ce/qualification-exams FINRA Registration and Examination Requirements]
* [https://www.finra.org/registration-exams-ce/qualification-exams/securities-industry-essentials-exam Securities Industry Essentials Exam]


[[Category:Professional certification in finance]]
[[Category:Standardized tests in the United States]]
[[Category:United States securities law]]