Series 7

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The General Securities Registered Representative Qualification Examination, or Series 7, tests a candidate’s knowledge of all securities products, including corporate securities, municipal securities, municipal fund securities, options, direct participation programs, investment company products, variable contracts and the respective regulations governing their solicitation, purchase, and sale.

Any individual who will transact a member’s business in all securities products must pass the Series 7.

The Series 7 is a 6-hour, 250 multiple-choice question exam. It is divided into two 3-hour parts of 125 questions each. Differing from most other securities qualification exams, the Series 7 is categorized according to seven critical functions to be performed by an RR and is as follows:

Critical Function	Questions	% of Exam
Seeks business for the broker-dealer through customers and potential customers	9	4%
Evaluates customers in terms of financial needs, current holdings and available investment capital, and helps them identify their investment objectives	4	2%
Provides customers and prospective customers with information on investments and makes suitable recommendations	123	49%
Opens, transfers, and closes customer accounts and maintains appropriate account records	27	11%
Explains the organization, participants, and functions of various securities markets and the principal factors that affect them	53	21%
Obtains and verifies the customer’s purchase and sale instructions, enters orders, and follows up on completion of transactions	13	5%
Monitors the customer’s portfolio and makes recommendations consistent with changes in economic and financial conditions as well as the customer’s needs and objectives	21	8%

To pass the Series 7, a 70% is required (175 out of 250 questions must be answered correctly).

Series 7 Exam Fee: $225
(Effective January 1, 2005)