Series 7

Rules and Regulations - Introduction

Are you taking the Series 7 exam to become a stockbroker, investment representative, or an account executive? They all mean the same thing and, for the purposes of the Series 7, the term is "registered representative", or "RR".

What Are Registered Representatives?
According to NYSE Rule 10, a registered representative is defined as "an employee engaged in the solicitation or handling of accounts or orders for the purchase or sale of securities, or other similar instruments for the accounts of customers of his employer or in the solicitation or handling of business in connection with investment advisory or investment management services furnished on a fee basis by his employer."

Look Out!
To break that down into bullets, an RR is employed by a broker-dealer to do at least one of the following, or to supervise others doing the following:
  • buying and selling securities,
  • providing investment advice for a fee, or
  • managing investments for a fee.

Registration is mandatory for virtually every broker-dealer employee - from a trading assistant to a supervisory principal - who handles money and securities for the firm or its clients.



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