Series 7
Series 7 refers to the General Securities Representative Qualification Examination, which is administered by the Financial Industry Regulatory Authority (FINRA). This exam is designed to assess the competency of an entry-level registered representative to perform their job as a general Securities representative.
The Series 7 license allows individuals to sell a variety of Securities, including Stocks, Bonds, mutual funds, and Options, making it essential for those pursuing a career in investment banking, brokerage firms, and other financial services.
To obtain the Series 7 license, candidates must pass the examination, which consists of 125 multiple-choice questions covering topics such as:
- Understanding different types of Securities
- Customer accounts and prohibited activities
- Regulatory requirements and compliance
- Investment Returns and risks
For example, a Financial Advisor who wishes to work for a brokerage firm must pass the Series 7 exam to be able to trade Securities on behalf of cLients. Another case might involve a newly hired Stockbroker who, after completing the necessary training, takes the Series 7 exam to gain the qualification needed to engage in trading activities.