Series 7 Exam: Why You Should Take It and What It Unlocks

What is the Series 7 Exam?

The Series 7 Exam is also known as the General Securities Representative Examination. It is a test that audits your ability as an entry-level representative to perform your regular day-to-day duties, like how to handle sales of corporate securities, investment company securities, options, variable annuities, government securities, and more.

What’s on the exam?

Investopedia considers this to be the hardest of the securities exams. Previously, the exam was almost 8 hours with 250 questions. It has been pared down, with the SIE Exam taking on some of the topics no longer covered. The exam is now made-up of 125 multiple-choice questions.

Steps to take the exam

• You need to have a sponsoring company that is a member of FINRA.
• Tests may be taken remotely or at a local test center. Both of these options go through Prometric.
• More than one exam may be taken at a time. For example, you can take your SIE and Series 7 on the same day.
• If you do not pass on your first try, you will need to wait 30 days and then you may try again.

Required Series 7 Exam pass rate

This exam requires a 72% minimum score to pass. After Passing The Exam And Becoming a Registered Representative, You Are Qualified To Solicit, Purchase, And Sell All Securities Products. Those Products May Include Corporate securities, Options, Municipal fund securities, Investment company products, Government securities, Venture capital, Hedge funds, Money market funds, Mutual funds, Exchange-traded funds.

What is the difference between the Series 7 Exam and the SIE Exam?

The Series 7 Exam and SIE Exam are essential for careers in the securities industry but have different purposes. The SIE Exam assesses foundational securities knowledge and is accessible without firm sponsorship, while the Series 7 Exam requires sponsorship and evaluates competence in executing securities transactions. The SIE is an entry step, whereas the Series 7 is needed to become a registered securities representative.

What to do after you pass the Series 7 Exam?

• After Passing The Exam And Becoming a Registered Representative, You Are Qualified To Solicit, Purchase, And Sell All Securities Products. Those Products May Include Corporate securities, Options, Municipal fund securities, Investment company products, Government securities, Venture capital, Hedge funds, Money market funds, Mutual funds, Exchange-traded funds.

Is the Series 7 Exam harder than the Bar Exam?

Many individuals who are considering taking the Series 7 Exam often wonder how it compares in difficulty to other well-known professional exams, such as the Bar Exam. While both exams are rigorous in nature and serve as entry points into prestigious fields, they differ significantly in focus and structure. The Bar Exam, taken by aspiring lawyers, tests a comprehensive understanding of legal principles and the ability to apply them in practice, and it often involves both multiple-choice questions and extensive essay writing over several days. Meanwhile, the Series 7 Exam, primarily aimed at future financial representatives, focuses on assessing one’s knowledge and ability to trade a variety of securities, including stocks, bonds, and options, through multiple-choice questions. Although each examination presents its own unique challenges, determining which is harder largely depends on one’s career aspirations, educational background, and strengths.

Tips for passing the Series 7 Exam

• Establish a study routine.
• Give yourself enough time to study.
• Take practice exams often to test your knowledge.
• Have a productive study space, like one that is organized, bright with light, and rid of distractions.
• Get up and take breaks regularly during study sessions.
• Drink water and snack on food that will help you think clearly, like nuts, yogurt, berries, and fish.
• Prepare for exam day, like getting enough rest the night before, eating a good meal before testing, and being prepared with the identification and testing materials you need.

The Series 7 Exam can elevate your finance career

Don’t let the difficulty of this test scare you away from the Securities Field. The Series 7 Exam can open up new opportunities for career advancement, increase your earning potential, and enhance your professional credibility.