General Securities Representative Exam

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The General Securities Representative Exam, commonly referred to as the Series 7 Exam, is a required exam to become a Registered Representative of a broker-dealer in the United States.

The exam is a six-hour, 260 question test (250 of which count towards the final score) that is owned and maintained by the New York Stock Exchange Regulations and administered by the self-regulating Financial Industry Regulatory Authority (FINRA), which covers a broad range of investments including stocks, bonds, options, limited partnerships, and investment company products (e.g., open- and closed-end funds). A candidate must answer 70% of the questions correctly in order to pass. Upon passing the test, one is granted a Series 7 / General Securities license. The series 7 license is the most comprehensive of several securities licenses that permit an agent to communicate with retail investors. For this reason, many account managers, analysts, and other executives in the employ of a registered Broker/Dealer hold Series 7 licenses. To satisfy the securities dealing requirements of some states, Series 7 license holders must also hold the Series 63 license or the Series 66 license, depending on that state the licensee works in and the state his/her clients reside in.

Test Breakdown	# of Questions	% of Exam
Prospecting for and Qualifying Customers	9	4%
Evaluating Customer Needs and Objectives	4	2%
Providing Customers with Investment Information and Making Suitable Recommendations	123	49%
Handling Customer Accounts and Account Records	27	11%
Understanding and Explaining the Securities Markets' Organization and Participants to Customers	53	21%
Processing Customer Orders and Transactions	13	5%
Monitoring Economic and Financial Events, Performing Customer Portfolio Analysis and Making Suitable Recommendations	21	8%