The Series 7 Exam is comprised of 250 multiple choice test questions. The time limit is 6 hours. 70% is the grade needed to pass the test. This license is for selling securities in the primary or secondary market of an NASD firm. The Series 7 covers securities such as Stocks, Bonds, Options, Mutual Funds, and Retirement Plans.
The Exam is offered daily at hundreds of national test centers.
Frequently Asked Series 7 Questions
Q: Who is required to take the Series 7?
A: NASD investment brokers and other employees of a firm.
Q: Is it a difficult exam?
A: It is a large exam, so the time and amount of material in it can be intimidating at first. However, it really comes down to just good study habits and passing the practice exams. Using a CD test simulator is very helpful.
Q: How long does it take to prepare for the exam?
A: Normally 2 months, but the good thing about the Series 7 is that it can be taken any day of the week (once you are registered through the NASD).
Q: What does the test focus on mostly?
A: It covers the entire securities market, but the most amount of questions are in Regulations, Debt (bonds), Customer Accounts and Options.
A: How many times can I sit for the exam?
Q: If you fail the test, you must wait 30 days before sitting for the Series 7 again. If you fail it 3 times, you must wait 6 months. After each fail thereafter - a 6 month wait is mandatory between attempts. This would be very unusual for a person to fail this many times though. As long as you passing the practice tests, you should pass on the first try.
Q: What other licenses are attractive to employers?
A: The most popular license over the last 3 years has been the Series 65 License. The 65 exam is to become a registered investment advisor. People who hold the Series 65 can charge fees for investment advice, instead of commissions. The Series 7 does not cover that. The Series 63 is also required of most employees. This covers state licensing. The Series 65 and the Series 63 do not require company sponsorship either. They are very attractive looking on a resume.
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