Utilizing the Series 7 License Exam8909310
Passing the Series 7 License Exam is often a requirement before anyone in the finance industry can sell or buy securities including stocks, bonds, derivatives and then for any other investments promoted towards the average person. The test is run through the Financial Industry Regulatory Authority (FINRA) and covers an extensive selection of investments and merchandise. As a way to take the exam, generally you've got to be sponsored by a registered part of FINRA, although now and again hawaii can act as your sponsor if you're a Registered Investment Advisor. The Exam is just one of several securities licenses that agents must hold to be able to contact retail investors; some states require further licenses for example the Series 63 or Series 66 licenses. Account managers, analysts and advisors used by registered Brokers and Dealers hold Series 7 licenses, giving the investing public confidence when controlling individuals the finance industry.
The test itself is made up of 260 questions, of which at the very least 72% must be answered correctly in order to get a pass mark. Typically, 66% of those sitting quality get 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 cost to take a seat the Series 7 license exam is a non-refundable $265, at the time of November 2010. Check once you build your exam appointment to confirm the fee.
Typically, to register for that exams you will have to complete a U-4 application, on what you must disclose details like previous work history, criminal convictions and everything else which could affect you skill to be effective inside the finance industry just as one advisor. Exams can be found daily, and you also have to pay your fee as well as set your personal appointment time for it to sit test. Exams are sat by 50 % consecutive 3 hour time slots, with 125 questions each.
The format with the exam is multiple choice format, with every question developing a possible four answers, without having penalties for guessing. Some questions have you talk about a reference book furnished by the testing centre, containing resources such as clippings from the Wall Street Journal. A non-programmable calculator will probably be furnished by most centers, but check if you are making your appointment, as some centers may operate differently.
Questions cover a variety of investment areas, including:
Generating start up business to the broker/dealer handles the ethics involved in contacting potential clients and issues such as transparency and disclosure.
Evaluating customer's financial situations and issues including risk profile and just what products or securities can help your client 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 purchase and sell orders and following on top of your client to make certain customer happiness.
The series 7 license exam can be a required license for anyone employed in the finance industry which is made to protect the investing public, as well as improving and enhancing industry standards.
