Taking The Series 7 License Exam5556463
Passing the Series 7 License Exam is often a requirement before anyone in the finance industry are available or buy securities including stocks, bonds, derivatives and then any other investments promoted to the general public. Quality is run by the Financial Industry Regulatory Authority (FINRA) and covers a large array of investments and products. So that you can take the exam, generally you must be sponsored by a registered member of FINRA, although in some instances their state can act as your sponsor a high level Registered Investment Advisor. The Exam is just one of several securities licenses that agents must hold so that you can talk to retail investors; some states require further licenses for example 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 when controling people in the finance industry.
Test itself is made up of 260 questions, which at least 72% must be answered correctly to acheive a pass mark. Typically, 66% of these sitting the exam get a pass mark, with an average score of 73%. From the 260 questions, only 250 counts towards any score, together with the other 10 questions considered experimental questions, or practice. The cost to take a seat the Series 7 license exam is a non-refundable $265, as of November 2010. Check if you build your exam appointment to substantiate the charge.
Typically, to join up to the exams you simply must develop a U-4 application, which you should disclose details including previous work history, criminal convictions and everything else that may affect your skill to operate from the finance industry being an advisor. Exams are available daily, and you also should pay your fee and set your own appointment time and energy to sit quality. Exams are sat in two consecutive 3 hour time slots, with 125 questions each.
The format with the exam is in multiple choice format, with every question developing a possible four answers, without any penalties for guessing. Some questions request you to talk about a reference book supplied by the testing centre, which has resources such as clippings through the Wall Street Journal. A non-programmable calculator is going to be given by most centers, but check when you're making your appointment, as some centers may operate differently.
Questions cover a variety of investment areas, including:
Generating start up business for your broker/dealer relates to the ethics associated with contacting clients and issues such as transparency and disclosure.
Evaluating customer's economic situations and issues including risk profile as well as what products or securities may help the customer achieve their investment goals.
Technical understanding opening accounts, buying and selling securities, transferring assets and general best practice record keeping.
Client communications; keeping investors accustomed to their current investments and making recommendations.
Accurately implementing client's trade orders and following up with the client to be sure customer care.
The series 7 license exam is often a required license for anybody employed in the finance industry which is made to protect the investing public, along with improving and enhancing industry standards.
