Series 7

The Series 7 exam assesses whether a candidate has the knowledge needed to perform the critical functions of a general securities representative. It is a representative-level exam: candidates must be associated with and sponsored by a FINRA member firm (or another applicable self-regulatory organization member) to take it. The SIE exam is a corequisite. A candidate must pass both the SIE and the Series 7 to obtain the General Securities Representative registration, and the two may be taken in either order.

Exam Pattern

The exam contains 125 scored multiple-choice questions, each with four answer choices. It also includes 5 unscored pretest questions that FINRA is evaluating for future use, for a total of 130 questions. Pretest questions are randomly distributed and look exactly like scored questions, so treat every question as if it counts. You have 3 hours and 45 minutes, which is about 1 minute 44 seconds per question, and there is no penalty for guessing.

Most questions are applied rather than purely factual. Expect customer scenarios that ask which recommendation is most suitable or what a representative should do first, rule questions set in realistic situations, and calculations: yields and accrued interest, tax-equivalent yield, conversion parity, sales charges and net asset value, option breakevens and maximum gains and losses, and margin equity, excess equity, and maintenance calls. A basic calculator and materials for working problems are provided, so you do not bring your own.

What the Exam Covers

FINRA's content outline organizes the exam by the four major job functions of a general securities representative. Function 3, which covers investment products, analysis, recommendations, and customer account servicing, is by far the largest.

Series7Contentoutlineweighting

Function	MainTopics
1 Seeks Business for the Broker-Dealer from .	Communications with the public product-specific advertising seminars and , ,
CustomersandPotentialCustomers	telemarketing the new-issue process underwriting exempt offerings and the , , , ,
	municipalprimarymarket
2 OpensAccountsafterObtainingand .	Accountregistrationsandtypes retirementandeducationaccounts customer , ,
EvaluatingCustomers'FinancialProfileand	identification and anti -money laundering investment profiles suitability and , ,
InvestmentObjectives	RegulationBestInterest andsupervisoryapprovals ,

Function	MainTopics
3 ProvidesCustomerswithInformation .	Investmentrisksandstrategies fundamentalandtechnicalanalysis equityanddebt , ,
aboutInvestments MakesSuitable ,	securities municipalsecurities investmentcompanies variablecontracts REITsand , , , ,
Recommendations TransfersAssets and , ,	DPPs options requireddisclosures costsandtaxes confirmationsandstatements , , , , ,
MaintainsAppropriateRecords	accounttransfers andbooksandrecords ,
4 ObtainsandVerifiesCustomers'Purchase .	Quotes ordertypes shortsales marketstructureandtradereporting settlement , , , ,
andSalesInstructionsandAgreements;	andgooddelivery errorsandcomplaints disputeresolution andmarginaccounts , , ,
Processes Completes andConfirms , ,
Transactions

Scoring and Results

A score of 72 is required to pass, and only the 125 scored questions count toward it. Your result is displayed at the end of the session. Candidates who do not pass receive a breakdown of their performance by function, which is useful for directing further study. Once registered, you keep the qualification while registered; if you leave the industry and are not registered for more than two years, you generally must requalify by examination unless you participate in FINRA's Maintaining Qualifications Program.

Exam at a Glance

ExamAspect	Details
Administeredby	FinancialIndustryRegulatoryAuthority(FINRA)
Delivery	Computer-based at a Prometric test center or online with remote proctoring ,
Questions	130 multiple-choice questions with four answer choices each: 125 scored and 5 unscored pretest
	items
Time	3hoursand45minutes
Passingscore	72
Examfee	$395 usuallypaidthroughthesponsoringfirm ,
Eligibility	AssociationwithandsponsorshipbyaFINRAmemberfirmorotherapplicableSROmember;theSIE
	isacorequisite
Enrollment	The sponsoring firm files Form U4 (or a Form U10 enrollment) to open a 120 -day window in which to
	scheduleandtaketheexam
Retakes	A 30 -day wait after a first or second failed attempt and a 180 -day wait after three failed attempts
	within24months;FINRAhasamendeditsrulestoshortenthesewaitsto15and60daysoncethe
	changeisimplemented

Where the Series 7 Fits

The Series 7 is the broadest representative registration. Many states also require a state law exam before a representative may do business with their residents, most often the Series 63 (Uniform Securities Agent State Law Exam) or the Series 66 (combined state law and investment adviser representative exam). Supervisory roles require a principal exam such as the Series 9/10 or Series 24.