Welcome to this overview of the Series 7 exam!
If you need help studying for the Series 7 exam or just want some more information about what the test is like, you’ve come to the right place.
Test Eligibility
Before you can register to take the Series 7 exam, you’ll need to be sponsored by either a FINRA member firm or an SRO member firm.
Once you’ve confirmed sponsorship, you’re set to begin the registration process!
What’s on the Series 7 Exam?
First, let’s talk about the questions on the test. There are 135 multiple-choice questions total, but only 125 of the questions will count toward your score. Why is that?
The 10 unscored questions on the Series 7 exam are called “pretest” questions. These are added to the tests to determine if they’re good enough questions to add to future versions of the test.
The trick is that you won’t have any way of knowing which questions are scored and which ones are pretest. They will appear just like the scored questions throughout the test.
The time limit for the exam is 3 hours and 45 minutes. There aren’t any scheduled breaks, but you’re free to take restroom breaks as needed.
Let’s take a closer look at the different sections of the Series 7 exam.
1. SEEKS BUSINESS FOR THE BROKER-DEALER FROM CUSTOMERS AND POTENTIAL CUSTOMERS
9 scored questions
- Contacting current and potential customers
- Developing promotional materials
- Seeking approval to distribute marketing materials
- Describing investment products and services to customers
2. OPENS ACCOUNTS AFTER OBTAINING AND EVALUATING FINANCIAL PROFILE AND INVESTMENT OBJECTIVES
11 scored questions
- Informing customers of the types of accounts
- Providing disclosures pertaining to various account types
- Obtaining and maintaining customer information and documentation
- Obtaining customer investment profile information
- Obtaining supervisory approvals required to open accounts
3. PROVIDES CUSTOMERS WITH INFORMATION ABOUT INVESTMENTS, MAKES RECOMMENDATIONS, TRANSFERS ASSETS, AND MAINTAINS RECORDS
91 scored questions
- Providing information about investment strategies
- Providing information about risks and rewards
- Communicating relevant market and investment data
- Reviewing and analyzing investment profiles and product options
- Providing disclosures pertaining to investment products
- Communicating about account information
- Retaining documentation
4. OBTAINS AND VERIFIES PURCHASE AND SALES INSTRUCTIONS AND AGREEMENTS; PROCESSES, COMPLETES, AND CONFIRMS TRANSACTIONS
14 scored questions
- Providing current quotes
- Processing and confirming transactions pursuant to regulatory requirements
- Informing customers of delivery obligations and settlements
- Informing the appropriate supervisors
- Resolving discrepancies, errors, complaints, and disputes
- Addressing margin issues
How to Register
Once you’ve ensured that you meet all of the eligibility requirements, your firm will register you for the exam via the CRD program.
A testing fee of $300 will need to be fully paid before you can sit for the exam.
Series 7 Study Guide and Flashcards
Get practice questions, detailed study lessons, and complex subjects broken down into easily understandable concepts.
Exam Scores
The test is scored using a the Angoff method. Here’s how it works:
The Angoff method involves a group of subject-matter experts taking an educated guess at the percentage of candidates who would correctly answer each question on the test. These estimates are then averaged to set a cut-off score, which test-takers must meet or exceed to pass.
This method aims to ensure the pass threshold reflects the level of knowledge or skill that is deemed minimally acceptable for a particular profession or field.
To pass, you’ll need to answer at least 72% of the questions correctly.
Retaking the Exam
If you didn’t get a passing score on your first try, that’s okay! You can retake the test after a 30-day waiting period.
Keep in mind that you will have to pay the full testing fee every time you retake the test.
FAQs
How many questions are on the Series 7 exam?
The exam contains 135 questions.
What is the time limit for the Series 7 exam?
The exam is timed at 3 hours and 45 minutes.
What is the passing score for the Series 7 exam?
You’ll need to answer 72% of the questions correctly to pass.
How much does the Series 7 exam cost?
The testing fee is $300.