The Series 7 Exam is a required examination for all who wish to buy or sell securities, and who wish to become registered representatives in the securities trade. The Series 7 Exam is offered by the US Securities and Exchange Commission, and can be taken in a variety of places across the country.
In order to take the Series 7 Exam, one must be qualified to do so. Those eligible to take the Series 7 include sales personnel in the Securities firms, officers of securities firms, and supervisors in Securities firms.
The Series 7 Exam covers several aspects of securities. One needs working knowledge of the security industry and structure. Those being tested must demonstrate proficiency in the laws regarding securities trading, the types of securities sold, and understanding of basic economic principals.
As well, those taking the Series 7 need to be conversant in tax law regarding securities. They also must identify appropriate sales techniques, and the different types of accounts a consumer purchasing securities can hold.
Additional exams are required for those who wish to run securities firms. These examination guidelines, however, mean that one must either be an excellent natural learner, or have had at least a few years of college studying these topics. Usually those taking the Series 7 have four-year degrees, at minimum, in either Business or Accounting.
It takes a considerable amount of time to take the Series 7. The exam consists of 250 multiple-choice questions. The test taking time total is 6 hours, and the exam is split in half and given in three-hour increments. This usually takes one day, though some may take the exam over two days.
In order to pass the exam, one must get 70% of the questions correct. If the exam is not passed on a first try, it can be retaken. One can also take study courses designed to help with passing the exam, but one is unlikely to pass the test without thorough knowledge of the subjects covered.
