How to Pass the Series 7

How to Pass the Series 7 Exam [Report]

In order to become a licensed stock broker, candidates must first know how to pass the Series 7 Exam. The Series 7, also known as the General Securities Representative Qualification Examination, was created by the National Association of Securities Dealers and is a standardized test that helps determine the qualifications of a person who would like to sell corporate stocks, bonds, investments, trusts, etc. Due to a change in the exam in 2011, those who pass the Series 7 will also be qualified to trade in municipal securities.

Test takers will have a total of six hours to answer 250 questions. The standardized passing score is currently 72%, and upon completion of the test, participants are given a pass/fail score report.

Series 7 Exam Secrets Study Guide
Series 7 Exam Secrets Study Guide

This exam prepares potential general securities representatives for entry-level jobs. Knowing the information in the Series 7 Exam will ensure that new employees will be confident and reliable. Those seeking to take this exam must be sponsored by a FINRA (Financial Industry Regulatory Authority) member firm. The exam costs $290 and is given regularly at Prometric Testing Centers and Pearson Professional Centers. Scratch paper and calculators are provided by the test-taking centers.

Passing this exam will qualify testers to purchase or sell securities products. The following activities and products are included in this qualification:

  • 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 on mortgage-backed securities
  • Government securities
  • Repos and certificates of accrual on government securities
  • Direct participation programs
  • Securities traders
  • Venture capital
  • Sale of municipal securities
  • Hedge funds

EXAM SECTIONS

The test is divided into five sections (F1-F5) that represent various job functions of a general securities representative. These functions are further divided into tasks:

Series 7 Flashcard Study System
Series 7 Flashcard Study System

F(1): Seeks business for the broker-dealer through customers and potential customers.

This function focuses on developing contracts and building relationships between brokers and customers via various modes of communication. It also covers the development of advertising material, how to describe investment products, and how to conduct seminars and lectures with customers.

This section is made up of 68 questions and comprises 27% of the exam.

F(2): Evaluates costumers’ other security holdings, financial situation and needs, financial status, tax status, and investment objectives.

This function covers the process of collecting customer information as well as how to review and analyze customers’ investment profiles. This section also analyzes test takers’ ability to determine appropriate investments for customers.

This section is made up of 27 questions and comprises 11% of the exam.

F(3): Opens accounts, transfers assets, and maintains appropriate account records.

Test takers will exhibit their ability to submit requests, obtain legal documents, and update account information in this section. This section also focuses on identifying suspicious activity in accounts.

This section is made up of 27 questions and comprises 11% of the exam.

F(4): Provides customers with information on investments and makes suitable recommendations.

This function section will cover information about communicating investment information to clients as well as making recommendations about products, risks, services, costs, and fees. Test takers should be able to identify appropriate investment strategies and know how to explain the particulars of investments to customers based on their financial needs and objectives.

This section is made up of 70 questions and comprises 28% of the exam.

F(5): Obtains and verifies customer’s purchase and sales instructions, ensures orders and follows up.

Test takers should be able to answer questions regarding trade orders and regulatory requirements in this section. This part of the exam will also ask questions about addressing margin issues, creating trade orders, informing supervisors of errors/complaints, informing costumers of trade procedures, as well as account information.

This section is made up of 58 questions and comprises 23% of the exam.

HOW TO PASS THE SERIES 7 EXAM

Mometrix provides a Series 7 study guide that will enable you to master the objectives listed above. This study guide gives step-by-step instructions that will help you navigate the content that the Series exam concentrates on.

Series 7 Practice Test

Mometrix is committed to helping test takers learn the information necessary for passing the Series 7 Exam, as well ridding test takers of procrastinating habits and test anxieties. The Mometrix Series 7 Exam study guide is written by standardized test researchers whose focus is on creating a simple, comprehensible study guide that will help you ace your exam and become a licensed stockbroker.

Mometrix understands that this is a lengthy, costly, and time-consuming exam. The study guide synthesizes information that will appear on the exam, providing test-takers with sample questions and important test-taking strategies. The study guide will help you pick apart tricky exam questions and logically figure out the correct answers to pivotal exam questions. The Mometrix practice questions will teach you how to pass the Series 7 in a time-saving, stress-free way.

(Series 7 flashcards)

The Series 7 not a test that you can skip out on studying for. No two tests are the same and it is estimated that only 65-70% of students pass the exam. If you do not pass the test the first time, you will be forced to wait thirty days to retake it. If you have failed three or more times, you will have to wait 180 days. Do not waste your money on retests! Instead, invest in Mometrix’s affordable, easy to use study guide. Mometrix is so confident that their study guide will help you succeed, that they offer a money back guarantee if you do not pass the Series 7 Exam with their help.

If your goal is to become a stockbroker, Mometrix’s Series 7 study guide can give you the extra boost needed to be a capable, anxiety-free test taker. If you would like to learn more about Mometrix, or read testimonials from satisfied customers, go to Mometrix’s website for more information.

Published by

Jay Willis

Jay Willis joined Mometrix as Vice President of Sales in 2009, and has developed several key strategic relationships that have enhanced the distribution of Mometrix products. With nearly 20 years of sales experience in the publishing industry, his dedication to providing the highest quality experience for customers, coupled with his sales and marketing expertise, has resulted in significant growth of the Institutional Sales division. Learn more