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The Series 7 exam is officially known as the general exam of securities representatives. It is a highly regulated exam that must be taken in an official test center. The cost to take the test is at least $ 265, with some areas in charge a little more.
Reference: https://www.finra.org/registration-exams-ce/qualification-exams/series7
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Applicants wishing to take the Series 7 exam must be sponsored by a FINRA member company and FINRA has other Series 7 eligibility requirements. The company must submit a U4 form (uniform registration application in the field of qualifications) to register the candidate for the license exam. FINRA regulates the activities of brokerage firms and registered brokers, ensuring that anyone who sells securities products is qualified and tested.
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Determining investment suitability - Customer information collection - Types of accounts and ownership structures - Account documentation and regulatory compliance |
| Topic 2: Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Taxation and regulatory rules - Direct participation programs - Characteristics of equity securities - Options and derivative products - Debt securities and government obligations - Investment company securities and variable contracts - Portfolio analysis and risk management - Municipal securities |
| Topic 3: Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions | 11% | - Recordkeeping and reporting requirements - Trade settlement and confirmation - Handling errors and discrepancies - Order types and execution procedures |
| Topic 4: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Prospecting and sales practices - Identification of potential customers - Regulatory requirements for communications with the public |
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