The Series 7 exam was developed as safeguard for the investing public and ensures that registered representatives are competent to do their jobs. The Series 7 exam is designed to evaluate a candidate's knowledge, skills and abilities, and to measure accordance with the principles of trade, state and federal law and securities industry regulations. Because the solicitation of clients is a key part of being a registered securities representative, candidates must demonstrate honesty and adherence to the law when making investment recommendations to their clients. The Series 7 exam has identified seven critical functions performed by registered representatives and has incorporated them into the test to comprehensively measure all necessary qualities for admittance into the general securities industry.
The Series 7 test spans six hours and covers 250 multiple-choice questions with 10 additional questions that are not used in final scoring. To pass the test, you must answer 70 percent of the questions correctly. Score results include a profile that breaks down your performance in specific areas of the test, giving you an opportunity to learn which areas of your knowledge need improvement.
In order to sit for the Series 7 exam, you must obtain sponsorship, either by working for an FINRA member company or for a self-regulatory organization such as the New York Stock exchange, Chicago Stock Exchange or NASDAQ. Prior to taking the Series 7 test, FINRA will require that you show proof that you are person associated with a member of its organization, actively engaged in investment banking and securities in a supervisory, solicitation or training capacity.
Through its affiliation with the Prometric and Pearson test centers, FINRA provides more than 100 locations in the United States for candidates to take the Series 7 test. Once you're approved to sit for the Series 7 test, and you've selected a test center location, you should be aware of the strictly enforced security requirements. You will be asked to show one form of valid, government-issued identification with both a photo and signature, and you will be subjected to image capture. Weapons, cell phones, hand-held computers and other types of communication devices are prohibited, as are most personal items with the exception of tissue, eyeglasses and jewelry (subject to inspection). The test center will provide a calculator and writing materials for notes and calculations.