Interested in becoming a stockbroker or financial advisor? This exam is in your near future, and is a huge asset to have if you can obtain it before college. I’ve known a few at Babson that work for Ameriprise (one example of a company that sponsors the exam) and have passed the exam before they even left college because they had an internship there.
Here are the basics:
When passed, the Series 7 licenses you to act as a Registered Representative. Individuals who receive this license are allowed to sell most securities including: Stock, Bonds, Options, Mutual Funds and Annuities. You must be sponsored by a company who is a member of the NASD (National Association of Securities Dealers) to take the exam. There are over 5,000 members.
The Series 7 exam itself is comprised of many topics although not equally divided. Approximately 50 questions will be on Municipal Bonds alone. Each question is worth .4 of a point. 175 questions correct will equal a passing grade. The score is not curved or rounded up- if you get 174 questions right, you will fail. Each part also includes 5 experimental questions, which do not count toward your final grade. You will not know which ones are the experimental questions. Each exam is different. This applies to all Licensing exams but the difference between tests is less with smaller content exams like the Series 63.
The license is active while you are a practicing representative. Practicing with a Series 7 means that you are either employed or affiliated with a member firm. If you leave the firm, your license will still remain active for 2 years after your last day with the firm. If you do not re-enter the business within 2 years, your license will expire. You would then have to pass the exam again.
You will be given a calculator and scrap paper to use at the center. Test-takers are not permitted to bring their own. You are tested using the Proctor computer system, which enables the computer to score your exam quickly- you get your score online within two business days. Once the test starts you can write down anything you want (formulas, etc). The computer also offers the student the ability to change their answers at the end of the first or second part of the test. If you desire to change an answer to a question in the first half that you have already answered, you must wait until the end of the first half to do it. Once the second half starts, you will be unable to view your first half. Basically, you are taking 2 different 125 question exams. Even if you are unsure what the correct answer to a question is, you must enter something before the next question is shown.
Below is a pie chart of what topics and skill sets the exam will test you on:
Source: Investopedia
Tip: want more information on your prospective broker and his past history? Call the NASD BrokerCheck at (800) 289-9999 for free historical records of individual representatives.
Here are the basics:
When passed, the Series 7 licenses you to act as a Registered Representative. Individuals who receive this license are allowed to sell most securities including: Stock, Bonds, Options, Mutual Funds and Annuities. You must be sponsored by a company who is a member of the NASD (National Association of Securities Dealers) to take the exam. There are over 5,000 members.
The Series 7 exam itself is comprised of many topics although not equally divided. Approximately 50 questions will be on Municipal Bonds alone. Each question is worth .4 of a point. 175 questions correct will equal a passing grade. The score is not curved or rounded up- if you get 174 questions right, you will fail. Each part also includes 5 experimental questions, which do not count toward your final grade. You will not know which ones are the experimental questions. Each exam is different. This applies to all Licensing exams but the difference between tests is less with smaller content exams like the Series 63.
The license is active while you are a practicing representative. Practicing with a Series 7 means that you are either employed or affiliated with a member firm. If you leave the firm, your license will still remain active for 2 years after your last day with the firm. If you do not re-enter the business within 2 years, your license will expire. You would then have to pass the exam again.
You will be given a calculator and scrap paper to use at the center. Test-takers are not permitted to bring their own. You are tested using the Proctor computer system, which enables the computer to score your exam quickly- you get your score online within two business days. Once the test starts you can write down anything you want (formulas, etc). The computer also offers the student the ability to change their answers at the end of the first or second part of the test. If you desire to change an answer to a question in the first half that you have already answered, you must wait until the end of the first half to do it. Once the second half starts, you will be unable to view your first half. Basically, you are taking 2 different 125 question exams. Even if you are unsure what the correct answer to a question is, you must enter something before the next question is shown.
Below is a pie chart of what topics and skill sets the exam will test you on:
Source: Investopedia
Tip: want more information on your prospective broker and his past history? Call the NASD BrokerCheck at (800) 289-9999 for free historical records of individual representatives.
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