About the Series 7 Exam
The Series 7 exam, officially known as the General Securities Representative Qualification Examination (GS), is one of the most comprehensive and widely recognized securities licensing exams in the United States.
Exam Overview
| Detail | Information |
|---|---|
| Full Name | General Securities Representative Qualification Examination |
| Administered By | FINRA (via Prometric) |
| Questions | 125 scored + 10 unscored (pretest) |
| Time Limit | 3 hours 45 minutes (225 minutes) |
| Passing Score | 72% (90 out of 125) |
| Cost | $300 |
| Prerequisite | Must pass SIE exam |
What Does the Series 7 License Allow?
Passing the Series 7 exam qualifies you to sell virtually all types of securities products, including:
- Equity securities (stocks, rights, warrants)
- Debt securities (corporate, government, and municipal bonds)
- Options (calls, puts, spreads, straddles)
- Mutual funds and other investment companies
- Variable annuities and variable life insurance
- Direct participation programs (DPPs)
- Exchange-traded funds (ETFs)
Note: The Series 7 is often called the "full license" because it provides the broadest authority to sell securities compared to other representative-level licenses like Series 6.
Exam Structure by Function
The Series 7 is organized around four major job functions of a General Securities Representative:
| Function | Description | Weight | Questions |
|---|---|---|---|
| F1 | Seeks business for the broker-dealer | 7% | 9 |
| F2 | Opens accounts and evaluates customer profiles | 9% | 11 |
| F3 | Provides information, makes recommendations, maintains records | 73% | 91 |
| F4 | Processes and confirms transactions | 11% | 14 |
Sponsorship Requirement
Unlike the SIE exam, you must be sponsored by a FINRA member firm to take the Series 7. This means you need to be employed by or associated with a broker-dealer before registering for the exam.
Key Topics Covered
This study guide covers all major topics tested on the Series 7 exam:
- Equity Securities - Common stock, preferred stock, rights, warrants, ADRs
- Debt Securities - Corporate bonds, yields, pricing
- U.S. Government Securities - Treasury securities, agency bonds, mortgage-backed securities
- Municipal Securities - GO bonds, revenue bonds, taxation
- Investment Companies - Mutual funds, closed-end funds, ETFs, UITs
- Variable Products - Variable annuities and variable life insurance
- Alternative Investments - DPPs, REITs, limited partnerships
- Options - Strategies, spreads, hedging, index options
- Customer Accounts - Account types, margin, options accounts
- Retirement Plans - Qualified plans, IRAs, education savings
- Securities Markets - Primary and secondary markets, order types
- Rules & Ethics - FINRA rules, suitability, regulations
How to Use This Guide
Continue learning