The Series 7 exam will consist of multiple-choice questions that cover four different functions. Take the sample Series 7 questions below to see how prepared you are for the Series 7 test. The official three-hour and forty-five-minute test, one hundred and thirty-five questions which includes ten example questionsis designed to validate and assure that each sponsored candidate can perform all the basic requirements and functions of a registered representative.
The Series 7 Study Guide provided by Mometrix, as well as the Series 7 Flashcardsare specifically designed to help you obtain the very best test score possible. The Series 7 exam includes the four major job functions of a general securities representative: Seeking business for the broker-dealer from customers and potential customers. This regulating authority and the Securities and Exchange Commission SEC are the two leading regulatory bodies to ensure that the integrity and fairness of the Stock market and to prevent a repeat of the stock market crash like the one in The Series 7 Exam is a way for FINRA to ensure that the registered representative is knowledgeable in the market and can navigate their clients through the highs and lows of stock market fluctuations.
The test also covers many investment scenarios that require the best answer according the specific investment criteria and what is best for that specific client. The FINRA Series 7 is a license exam that is taken by stockbrokers in the United States that enable them to trade and to sell a wider range of securities.
The exam focuses on investment risk, taxation, equity and debt instruments, packaged securities, options, retirement plans and interactions with clients. The Series 7 exam consists of questions over 3 hours and 45 minutes.
Out of the questions on the exam, are counted towards your final score. To be considered as passing the Series 7 exam, candidates will need to score at least 72 percent. Mometrix Academy is a free source of information provided by Mometrix Test Preparation. If you find this helpful in your studies, there are concise study guides and flash cards that you may purchase to extend your Series 7 knowledge, as you prepare for the test. Purchasing these study tools increases your chances at a higher score and supports additional free content for test-takers like yourself.
The first function has 9 questions associated with how a Registered Representative finds additional business for the sponsoring Broker-Dealer. These questions focus on the tasks and rules associated with the process of finding these potential clients. When a registered representative contacts a potential client via in person, email, phone, mail, there are certain rules and regulations that must be met.
Why You won't Pass the Series 7 exam
Once the client is contacted, the way the investment products and services are discussed and presented must also follow proper guidelines. The use of advertising, seminars, lectures and group meetings with potential clients must also follow the proper protocol.
The next function has 11 questions associated with how a Registered Representative evaluates security holdings and meets financial needs through proper investment objective appropriate to each individual client.
Opening accounts, transfers funds and maintaining appropriate account records is covered in 27 questions of the exam. The Registered Representative must obtain correct client information and documentation according to the federal regulations. Informs the clients of the different types of accounts available and their restrictions, including proper disclosures. The Registered Representative must also be able to recognize suspicious activity in an account and how to report to the regulatory authorities.
If the account is a special account like; a power of attorney, trust documents, Transfer on Death, Corporate account, the proper documents must be collected.To solicit, purchase, and sell all securities products e. Here are seven that can help you pass. The first thing you should do is lay out a study plan that ensures you put those hours in.
Give yourself enough time to take breaks from study to let concepts percolate. We strongly recommend including a Series 7 preparation package as part of your plan. Set your study routine as soon as possible. A steady, regular study method will increase your retention dramatically compared to frantic cramming at the end.
Be sure to take a day off to rest your mind when you need to. And, speaking of routines, in the last weeks before the exam, try to get in a good sleep pattern. Anxiety can make sleeping difficult, but having a set sleep schedule some time before will keep you rested. The Series 7 exam consists of multiple-choice questions and takes minutes. It focuses on the nature of various securities and financial instruments such as equities, bonds, options, and municipal securities.
Instead, be sure to learn the concepts; they are more important than formulas. A number of the questions will test how you incorporate all your knowledge to make suitable recommendations for a hypothetical client. Because there are different types of questions on the exam, practice questions are your secret weapon for Series 7 exam success. Plan to invest a significant amount of time answering questions to get a better understanding of where your strong and weak points are, and where you need to focus more attention.
If your exam prep provider provides a question bank database, take advantage of this valuable study asset as much as you can. One of the best ways to improve your chance of passing is to take practice exams.
Practice exams are different from practice questions because they closely replicate the real exam in terms of degree of difficulty, weighting, and format.
Most are updated to address the latest regulations, and you receive a score with diagnostic feedback. The better you perform on these exams, the greater your likelihood of passing the Series 7 exam.
Plan to arrive at the testing center more than 30 minutes beforehand. That gives you plenty of time to check in, find where you are supposed to go, and collect your thoughts before the exam starts. During the exam, take the questions one at a time. Nor should you think about how many questions lie ahead—focus on the one at hand, answer it, and move on.
If you approach Series 7 exam questions this way, you are likely to miss something important. So, be sure to read the entire question and all the answer choices. Then read the last sentence of the question again before starting to eliminate answers. The Series 7 exam can be tough, but if you follow these strategies, study wisely, and invest in exam prepyou have a great chance of passing.
We asked several accomplished securities pros what they wish they knew before they earned their license and started their career, and what they thought all aspiring securities professionals should know. We put all of their advice into a value-packed eBook. By: Kaplan Financial Education. Thinking about a career in securities? Strategy 2: Set a Routine Early Set your study routine as soon as possible. Strategy 3: Focus on Learning Concepts The Series 7 exam consists of multiple-choice questions and takes minutes.
Strategy 4: Use Practice Questions to Measure and Improve Comprehension Because there are different types of questions on the exam, practice questions are your secret weapon for Series 7 exam success. Strategy 5: Take Series 7 Practice Exams One of the best ways to improve your chance of passing is to take practice exams.
Strategy 6: Stay Calm on Exam Day Plan to arrive at the testing center more than 30 minutes beforehand.Whether you are looking to start a career in financial services or insurance, we have a wide range of study products designed to prepare you to pass your qualifying exam. We have helped over 1 million securities professionals pass FINRA qualifying exams with a broad range of study materials and support services developed over nearly five decades. Need Securities CE?
Let our experience help you pass your exam on the first try. Our pre-licensing courses are comprehensive, yet easy to understand and offer effective, exam-focused solutions for your training. Is your company looking for a turn-key solution that lets you bulk order materials, track student performance, and manage your trainees in real time?
STC can help you make your training programs better. Launch your Financial Services career with the Securities Industry Essentials Exam SIEwhich dramatically changes licensing requirements for new entrants into the industry. In collaboration with some of our top corporate clients, we are sponsoring more than 15 different courses and periodic webinars at over 35 universities nationwide. There are three packages available for purchase: Standard, Premier and Premier Plus.
I passed! Thank you so much, Elizabeth! I have long way to go…After series 7 I have to get 24, Because of your excellent service and customer care, I want to stay with STC. Have a great day!! Thanks for the great training material. Good Afternoon Dave, I took your class this week and let me again say thank you.
Again, thank you for your hard work this week and I look forward to speaking to you soon to tell you I passed. I took the Series 24 yesterday and passed with flying colors. I felt very confident as I was going through the exam. Thank you for the great review course and tips.
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Learn more. Series 54 New! Thanks again for all your help!Without it, you can't sell securities. The bad news is you now have to take two tests. The good news is that the number of combined questions is actually smaller than the old Series 7. Finra simply extracted all the common material that covered basic industry knowledge and created a supplementary exam that people can take without being sponsored by a broker-dealer. The motivation was to eliminate the need for test-takers to demonstrate their understanding of the basics several times if they need multiple Finra licenses.
The SIE is also being looked at as a resume sweetener for people who want to enter the investment industry. A common mistake made by test takers is memorizing answers rather than digesting the actual material, Marks said.
It provides a false sense of confidence and is a formula for not passing. In the Series 7, a lot of candidates are guilty of spending way too much time on the options and corporate bonds sectors.
First, there are questions in the new Series 7, down fromplus 10 non-graded questions, so don't get thrown off if you see something unexpected. Those 10 are designed to help Finra test out new material.
The Series 7 exam is three-hours and 45 minutes. You need to train like an athlete to get your mind and body used to this marathon period of time.
Series 7 Pass Rate
This is particularly the case as regulators change the rules ever more swiftly. The study material you use must be less than a year old. One premium topic is making suitable investment recommendations. The bigger the margin for error, the better. Contact: btuttle efinancialcareers. Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by actual human beings.
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Seven tips for acing the Series 7 and other financial exams by Beecher Tuttle 28 March Why You won't Pass the Series 7 exam.
You won't pass the exam because you are listening to people who took the exam 5,6 or even 20 years ago. The advice most of my students get is "just take a lot of questions,don't read the book" That is a sure way to fail,yes there are some people who can just take a lot of questions and "game" the exam but they are the ones you were always envious of in school, they looked like they weren't trying and still aced the exams.
Almost every single student of mine says that is the advice they get from their supervisors. I have even heard of a few getting yelled at because they were reading the book. Some of those people took the exam in the 90s,when the exam questions were drastically different and the Vendors were actually helping write the questions on the exam. FINRA formerly NASD ended that practice a long time ago and there may have been some lingering questions from the "good ole days" they are pretty much gone now.
This is not your father's Series 7 exam. The questions have evolved over time to be more about suitability and less about definitions and easy math problems. The amount of option questions dropped from down to the mid 20"s and the test was slanted more toward suitability and situation questions. This test is not an IQ test it's a work test,if you do the work a majority of you will pass but quite a few students have priorities reversed.
Weekends should be the time when you can make the most headway in studying. You get to sleep a little later,start studying while rested and not after a long day of work and really get some good solid studying in. YES that hurts me in the long run but the bigger deal is they are learning. Most people just power through the books and just try to memorize the material,good,which is a near Herculean task. I am not saying shoot for a C- but in reality that is all you need. Do not let the books scare you ,they all make certain topics overly difficult for some reason I just don't understand.
Margin on the exam is extremely simple and straightforward, the books make it seem like some incredibly cumbersome and difficult process then they ask you questions with so many confusing variables a margin clerk would have difficulty. On the test they need you to understand the impact of certain basic actions on your equity and leverage.
I feel they do the same with taxes and then ask a question on some obscure point buried in the text of the book that the actual test will never even come close to hinting at, leave the crazy tax questions to the CPA exam. Don't get me started on T-charts with options,they almost ensure that you have no idea what an actual option does and can only help if they ask basic math questions. All my students have come back to me stating that there are less math and more suitability in general but definitely with the option questions.
I don't see how you can fit grandma's retail customer needs,fears and expectations into a T chart. You have to know the what options do and what they are for,not as well as a trader knows them but well enough to explain them to your mom. YOU will be fine and do not let this test define your self worth and after you pass you can take your friends out to make up for the weeks you have been ignoring them. Now onto the Series 66 UGH.
Mark favorite. Comments This was very helpful, I failed the test today and mainly because of all the point you said to not do. Lol smh lesson learned starting over.I Passed my Series 7 yesterday and I thought it would be helpful to share my experience in efforts to shed light on this exam. I'll cut to the chase, its a BEAR no pun intended. However, Its not impossible. I have a masters degree, got excellent grades in school, but never did well in standardized state tests. I only share this because if you know about these kinds of tests you know that it doesn't measure an ounce of intelligence.
It measures if you have taken enough Ginkgo Biloba to retain the information. Back to business. I used Kaplan for this test and let me just say that it was exactly what I needed.
I did about questions read the book twice. Here is what worked for me. Twice if you can if not at least skim through it the second time.
Next, buy the Q-Bank! I created questions exams covering all topics, then did a simulation exam of random computer selected questions. Then I focused on the weak areas by doing questions on each weak area and I re-read the chapter I was weak on.
This will improve your scores very quickly. I didn't get any other supplements they are unnecessary, also don't waist your time going to that Kaplan class its a waste of time, I went to it and I felt like the person teaching it was a robot reading off the book. I left the third day and studied more.
If after doing questions and scoring mid 80's you take the "Practice Exam or Mastery Exam" and If you score say a 70 on those tests but are scoring mid 80s on the simulation expect to pass.
The Complete Guide to Passing Your Series 7 Exam
Those tests are stupid difficult and in my opinion completely unrealistic. Remember to focus on suitability, Debt securities, Munis, options and variable annuities. They are all huge. Lastly, I passed with an 85 and yesspare the smart ass commentsI did bust my ass and yes I did study hard.
No such thing as studying "too hard" when your job is on the line. Kaplan is the way to go Qbank is on point.How hard is the Series 7 exam? FINRA designed it to test Series 7 license candidates on how well they can apply their knowledge of securities concepts to specific scenarios. It is a corequisite of the SIE examwhich tests you on general securities topics.
By contrast, the questions on the Series 7 exam are detailed and related to the day-to-day activities, responsibilities, and job functions of stockbrokers. Therefore, it can be considered a challenging exam. At the FINRA annual conferenceit was announced that from October 1, to March 31,10, individuals sat for the exam, and the Series 7 pass rate for that period was 71 percent. That rate applies only to those who passed both the SIE exam and the Series 7 exam.
However, this improvement was just a few percentage points and factors in a 74 percent rate for the SIE alone. Therefore, the exam is still no walk in the park. The Series 7 exam consists of multiple-choice questions, and each question has four answer choices. The topics include investment risk, taxation, equity and debt instruments, packaged securities, options, retirement plans, and interactions with clients. The focus of the exam is the nature of these securities and financial instruments, and it tests knowledge relevant to the day-to-day activities, responsibilities, and job functions of general securities representatives.Series 7 Exam Review Tips - Free Fixed and Adjustable Numbers
The questions are broken into four sections as shown in this table:. As you can see, the third topic dominates the Series 7 exam curriculum.
Therefore, it is essential that you have a firm grasp on how to provide investment information and recommendations to customers, how to transfer assets, and how to maintain appropriate records. You should keep this in mind as you study. The Series 7 exam is not easy. It requires a significant investment of time to be successful. Proper preparation is the key. These tips will help you develop the knowledge and confidence necessary to increase your odds of passing:.
Read this article on Series 7 study strategies for more details about preparing for the exam, including what to do on exam day.