Using the Series 7 License Exam3132032
Passing the Series 7 License Exam can be a requirement before anyone employed in the finance industry can sell or buy securities including stocks, bonds, derivatives and any other investments promoted on the average man or woman. Quality is run from the Financial Industry Regulatory Authority (FINRA) and covers a broad variety of investments and products. In order to consider the exam, generally you must be sponsored with a registered person in FINRA, although now and again the state of hawaii can become your sponsor a high level Registered Investment Advisor. The Series 7 Exam is just one of several securities licenses that agents must hold as a way to speak with retail investors; some states require further licenses including the Series 63 or Series 66 licenses. Account managers, analysts and advisors utilised by registered Brokers and Dealers hold Series 7 licenses, giving the investing public confidence in dealing with people in the finance industry.
The test itself includes 260 questions, of which no less than 72% have to be answered correctly in order to get a pass mark. An average of, 66% of the sitting the test have a pass mark, with the average score of 73%. From the 260 questions, only 250 counts towards one last score, with all the other 10 questions considered experimental questions, or practice. The charge to sit the Series 7 license exam is a non-refundable $265, at the time of November 2010. Check when you build your exam appointment to confirm the cost.
Typically, to join up for that exams you simply must complete a U-4 application, which you need to disclose details like previous work history, criminal convictions and anything else that could affect your skill to be effective from the finance industry being an advisor. Exams are available daily, so you should pay your fee and hang up your individual appointment time and energy to sit quality. Exams are sat in 2 consecutive 3 hour time slots, with 125 questions each.
The format from the exam is multiple choice format, with every question creating a possible four answers, without any penalties for guessing. Some questions require you to talk about a reference book furnished by the testing centre, which has resources including clippings in the Wall Street Journal. A non-programmable calculator will be given by most centers, but check when you find yourself making your appointment, as some centers may operate differently.
Questions cover many investment areas, including:
Generating new company to the broker/dealer works with the ethics involved in contacting prospective clients and issues for example transparency and disclosure.
Evaluating customer's financial situations and issues for example risk profile as well as what products or securities may help the client achieve their investment goals.
Technical expertise in opening accounts, buying and selling securities, transferring assets and general best practice documentation.
Client communications; keeping investors accustomed to their current investments and making recommendations.
Accurately implementing client's buy and sell orders and following up with the customer to be sure customer care.
The series 7 license exam is really a required license for anybody employed in the finance industry and is built to protect the investing public, as well as improving and enhancing industry standards.
