Getting Started - What FINRA is Testing

FINRA (Financial Industry Regulatory Authority) is the self-regulating exchange that administers the Series 7 exam with the co-operation of other securities exchanges and the consent of the Securities and Exchange Commission (SEC). Although the SEC could decide at any time to take over the task of determining who is and who is not fit to trade U.S. securities, it is not interested in doing that. The industry itself, through the exchanges, is just as happy to hold on to this responsibility rather than cede it to government regulators. Exam Content The content of the Series 7 exam is no mystery. A summary of all things Series 7 can be found in the ), in PDF format, prepared by the New York Stock Exchange.The Content Outline does not give you the exam questions or the answers, but it does give you the topics - and that is as good a place as any to start as any. There are five critical functions, which are each weighted differently, These functions area as follows::

F1 Seeks Business for the Broker-Dealer through Customers and Potential Customers 27% 68 questions

F2 Evaluates Customers’ Other Security Holdings, Financial Situation and Needs, Financial Status, Tax Status, and Investment Objectives 11% of test 27 questions

F3 Opens Accounts, Transfers Assets, and Maintains Appropriate Account Records 11% of test 27 question

F4 Provides Customers with Information on Investments and Makes Suitable Recommendations 28% of test 70 questions

F5 Obtains and Verifies Customer’s Purchase and Sales Instructions,Enters Orders, and Follows Up 23% of test 58 questions

TOTAL 100% 250 questions

Series 7 Exam Format
Related Articles
  1. Professionals

    5 Reasons Financial Advisors Still Choose Mutual Funds

    Take a look at five primary reasons why financial advisors still choose to recommend mutual funds over other types of investment vehicles.
  2. Professionals

    Internal Advisor Consultant: Career Path & Qualifications

    Discover more about the responsibilities of an internal advisor consultant, the average salary he can expect and the qualifications he will need for the job.
  3. Brokers

    Broker-Dealer Industry 101: The Landscape

    Independent broker-dealers are a great choice for experienced, self-starter planners who have established practices.
  4. Personal Finance

    RIAs and Brokers: What's the Difference?

    RIAs and brokers are held to different standards when providing investment advice. Here's how they differ.
  5. Trading Systems & Software

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  6. Professionals

    How To Answer Option Questions On The Series 7 Exam

    Learn how to answer option questions on the Series 7 exam. Pass your Series 7 exam with the help of these tips.
  7. Professionals

    Series 55

    FINRA Series 55 Exam Guide
  8. Professionals

    Series 62

    FINRA Series 62 Exam Guide
  9. Professionals

    Series 99

    FINRA/NASAA Series 99 Exam Guide
  10. Professionals

    Series 65

    FINRA/NASAA Series 65 Exam Guide
RELATED TERMS
  1. No results found.
RELATED FAQS
  1. Do financial advisors need to pass the Series 7 exam?

    The exact nature of a financial advisor's job responsibilities determines whether he must have a Series 7 license. If a financial ... Read Full Answer >>
  2. Do financial advisors have to be licensed?

    Financial advisors must possess various securities licenses in order to sell investment products. The specific products an ... Read Full Answer >>
  3. What are the differences between the Series 6 exam and the Series 7 exam?

    The Financial Industry Regulatory Authority (FINRA) offers a variety of licenses that must be obtained before conducting ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center