Of the 250 questions on the Series 7 exam, four will focus on this critical function: "Evaluates customers in terms of financial needs, current holdings, and available investment capital, and helps them identify their investment objectives."

Before you sell any investment to a potential client, you should ideally know as much about the client as you know about the investment itself.

And, just as there is more to a security than its market price, there is more to the customer than how much he or she has to spend. Your recommendations will be determined by both financial and non-financial considerations.
Client Income Statement

Related Articles
  1. Financial Advisor

    Investing Other People's Money: 5 Things You Must Know

    Learn the five things an advisor should know before investing another person's money, with a focus on the FINRA "know your customer" rule.
  2. Financial Advisor

    How to Impress Clients: The First Meeting

    When meeting a prospective client you don’t want your first impression to be your last. Here are some tips to make sure there's a second meeting.
  3. Personal Finance

    When (And How) To Fire A Client

    Firing the clients who take more of your time and effort than the revenue they contribute is a great way to improve your bottom line.
  4. Tech

    The Plusses of Second Opinions for Clients

    If you are not collaborating with other professionals in your circle, you could be doing your clients a disservice.
  5. Financial Advisor

    Keys to Keeping Millionaire Clients

    Almost half of millionaires would not recommend their advisor. Here's how to keep these clients happy.
  6. Financial Advisor

    What To Do When Your Client Behaves Badly

    As a financial advisor managing your client's assets is only part of the job; sometimes you have to manage your client, as well.
  7. Financial Advisor

    Top 3 Things NOT to Say to Clients

    Steadily growing your client roster can be tough these days. Communicating effectively with customers should be one of your top priorities.
  8. Financial Advisor

    5 Vital Questions Advisors Should Ask New Clients

    By asking the right questions, listening and building trust, investors and their financial advisors can get the most out of their relationship.
  9. Financial Advisor

    Advisors: When Should You Fire a Client?

    Sometimes firing a client is necessary. Here's how to know when it's time to show a client the door.
Frequently Asked Questions
  1. Why Do Most of My Mortgage Payments Start Out as Interest?

    Fear not: Over the life of the mortgage, the portions of interest to principal will change.
  2. What is the difference between secured and unsecured debts?

    The differences between secured and unsecured debt, and how banks buffer risks associated with each type of loan through ...
  3. How Many Times has Warren Buffett Been Married?

    Warren Buffett has been married twice in his life, but the circumstances surrounding the marriages were unconventional.
  4. What's the smallest number of shares of stock that I can buy?

    Many people would say the smallest number of shares an investor can purchase is one, but the real answer is not as straightforward. ...
Trading Center