Utilizing the Series 7 License Exam2356992
Passing the Series 7 License Exam is really a requirement before anyone doing work in the finance industry are available or buy securities including stocks, bonds, derivatives and any other investments promoted for the general public. Test is given through the Financial Industry Regulatory Authority (FINRA) and covers an extensive array of investments and products. In order to take the exam, generally you need to be sponsored by way of a registered part of FINRA, although now and again the state of hawaii can act as your sponsor if you are a Registered Investment Advisor. The series licensing is among several securities licenses that agents must hold so that you can talk to retail investors; some states require further licenses such as 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 folks the finance industry.
The test itself consists of 260 questions, which a minimum of 72% have to be answered correctly to get a pass mark. An average of, 66% of people sitting the test get a pass mark, having an average score of 73%. From the 260 questions, only 250 counts towards any score, with the other 10 questions considered experimental questions, or practice. The price to sit the Series 7 license exam can be a non-refundable $265, at the time of November 2010. Check if you you could make your exam appointment to verify the fee.
Typically, to sign up for the exams you will need to finish a U-4 application, on which you need to disclose details like previous work history, criminal convictions and whatever else that may affect you skill to function in the finance industry just as one advisor. Exams can be found daily, and you also have to pay your fee and set your own personal appointment time for it to sit the test. Exams are sat in 2 consecutive 3 hour time slots, with 125 questions each.
The format in the exam is multiple choice format, each and every question having a possible four answers, without any penalties for guessing. Some questions ask you to make reference to a reference book furnished by the testing centre, that contains resources such as clippings from your Wall Street Journal. A non-programmable calculator is going to be furnished by most centers, but check when you are making your appointment, as some centers may operate differently.
Questions cover an array of investment areas, including:
Generating new business for the broker/dealer deals with the ethics involved in contacting potential clients and issues like transparency and disclosure.
Evaluating customer's economic situations and issues including risk profile and just what products or securities may help the customer achieve their investment goals.
Technical comprehension of opening accounts, exchanging securities, transferring assets and general best practice documentation.
Client communications; keeping investors informed about their current investments and making recommendations.
Accurately implementing client's buy and sell orders and following with the consumer to make sure customer care.
The series 7 license exam is a required license for anybody doing work in the finance industry and is also made to protect the investing public, in addition to improving and enhancing industry standards.
