Taking The Series 7 License Exam972622
Passing the Series 7 License Exam is really a requirement before anyone doing work in the finance industry can sell or buy securities including stocks, bonds, derivatives and then for any other investments promoted to the general public. The test is given by the Financial Industry Regulatory Authority (FINRA) so they cover a broad array of investments and products. So that you can make exam, generally you've got to be sponsored with a registered person in FINRA, although sometimes the state can act as your sponsor an advanced Registered Investment Advisor. The Prep is among several securities licenses that agents must hold as a way to contact retail investors; some states require further licenses such as the Series 63 or Series 66 licenses. Account managers, analysts and advisors employed by registered Brokers and Dealers hold Series 7 licenses, giving the investing public confidence in dealing with people in the finance industry.
Quality itself contains 260 questions, ones at the very least 72% have to be answered correctly in order to get a pass mark. An average of, 66% of people sitting the exam have a pass mark, having an average score of 73%. In the 260 questions, only 250 counts towards one further score, using the other 10 questions considered experimental questions, or practice. The charge to take a seat the Series 7 license exam is really a non-refundable $265, at the time of November 2010. Check whenever you you could make your exam appointment to substantiate the fee.
Typically, to sign up for the exams you need to develop a U-4 application, where you need to disclose details for example previous work history, criminal convictions and other things which could affect you skill to function in the finance industry as an advisor. Exams are offered daily, and also you should pay your fee and set your personal appointment time for you to sit test. Exams are sat in two consecutive 3 hour time slots, with 125 questions each.
The format from the exam is within multiple choice format, with each and every question creating a possible four answers, with no penalties for guessing. Some questions have you refer to a reference book supplied by the testing centre, containing resources including clippings in the Wall Street Journal. A non-programmable calculator will probably be provided by most centers, but check if you are making your appointment, as some centers may operate differently.
Questions cover many investment areas, including:
Generating new business for your broker/dealer relates to the ethics involved with contacting prospects and issues including transparency and disclosure.
Evaluating customer's economic situations and issues like risk profile and what products or securities might help the client achieve their investment goals.
Technical understanding opening accounts, exchanging 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 track of the customer to make certain client satisfaction.
The series 7 license exam can be a required license for any person in the finance industry and is also meant to protect the investing public, in addition to improving and enhancing industry standards.
