Recently offered a job and find out that you need to take the Series 7 exam?
Seems like it would be helpful to know a little bit about it, right? Below I outline the reasons you need it, the jobs that it covers, and more.
What Does the Series 7 Cover?
First of all, if you are new to the finance industry, and working for a broker-dealer then you might have to take the Series 7 exam. The Series 7 exam is a regulatory hurdle you need to conquer for customer-facing jobs in the financial services industry.
As such, you can imagine that the Series 7 is meant to cover a wide range of jobs. Some jobs that require the Series 7 exam include, research analyst (sell-side), equity sales, fixed income sales, trader, financial adviser, and many more.
Ultimately, representatives that sell or advise on general securities need the designation. These securities include: stocks, bonds, preferred stocks, options, individual fixed income products, as well as bundled products.
The license does NOT typically permit a Series 7 holder to sell real estate, life insurance, or commodity futures.
Who Offers the Series 7 Exam?
The Financial Industry Regulatory Authority (FINRA) offers the Series 7. FINRA ensures that the potential registered representative (what you call someone with the Series 7 license) meets the minimum requirements to execute transactions with all kinds of securities, but as mentioned above, not commodities and futures.
In addition, the Series 7 qualification is usually needed in conjunction with other FINRA exams, such as the Series 63. As of late 2018, the Securities Industry Essential (SIE) exam is a corequisite for the Series 7.
What’s in the Series 7 Exam?
Below is the most recent breakdown that we can find on FINRA’s website (as of October 2020). This breakdown outlines the number of test questions by job function.
Source: FINRA.org
Jobs at broker-dealers carry the heaviest weight. Furthermore, you probably also notice that ethics are covered extensively. Similar to the CFA exam, the Series 7 looks to ensure that you have a basic grasp of ethics.
A Few More Notable Details About the Exam
Check out the table below for a little more information about the Series 7 exam. If you’re interested in learning more about Series 7 test prep, this post here will help!
Finally, for more information on how hard it is, and how to pass it, check out our post here. For help with it, try out a tutor or our Series 7 video course. Good luck!