Taking The Series 7 License Exam8413202
Passing the Series 7 License Exam can be a requirement before anyone working in the finance industry can sell or buy securities including stocks, bonds, derivatives as well as any other investments promoted for the average man or woman. Quality is given through the Financial Industry Regulatory Authority (FINRA) and covers a large array of investments and merchandise. To be able to take the exam, generally you must be sponsored by way of a registered part of FINRA, although occasionally the state of hawaii can become your sponsor if you are a Registered Investment Advisor. The series exam prep is one of several securities licenses that agents must hold to be able to contact retail investors; some states require further licenses like 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 working with individuals the finance industry.
The exam itself contains 260 questions, that no less than 72% has to be answered correctly in order to get a pass mark. On average, 66% of these sitting quality obtain a pass mark, by having an average score of 73%. With the 260 questions, only 250 counts towards any score, using 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 when you help make your exam appointment to substantiate the cost.
Typically, to join up for that exams you need to accomplish a U-4 application, which you have to disclose details for example previous work history, criminal convictions and anything else which could affect you skill to work within the finance industry as a possible advisor. Exams are offered daily, and you also should pay your fee and hang your own appointment time for you to sit test. Exams are sat by 50 percent consecutive 3 hour time slots, with 125 questions each.
The format with the exam is in multiple choice format, with every question creating a possible four answers, without any penalties for guessing. Some questions require you to reference a reference book furnished by the testing centre, which contains resources including clippings through the Wall Street Journal. A non-programmable calculator will probably be furnished by most centers, but check when you're making your appointment, as some centers may operate differently.
Questions cover an array of investment areas, including:
Generating new business for your broker/dealer relates to the ethics associated with contacting potential clients and issues like transparency and disclosure.
Evaluating customer's financial situations and issues including risk profile and just what products or securities will help your client achieve their investment goals.
Technical expertise in opening accounts, selling and buying 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 your client to make sure customer happiness.
The series 7 license exam is a required license for anyone employed in the finance industry and is built to protect the investing public, along with improving and enhancing industry standards.
