Series 7 Exam Overview.

The Series 7 is a 250 question exam that when passed, licenses you to act as a Registered Representative. Persons who receive this license are allowed to sell most securities. These securities would include: Stock, Bonds, Options, Mutual Funds and Annuities. The license itself is active while you are practicing it. Practicing with a Series 7 means that you are either employed or affiliated with a member firm. If you leave the business, your license will still remain active for 2 years after your last day with the firm. If you do not re-enter the business within 2 years, your license will expire. You would then have to re-take the exam again.

Time limit: 6 hours (the exam is broken into two parts, each part has a 3 hour time limit)
Exam administration: The Series 7 exam is multiple choice and is given on computer
Number of questions: 250 total (125 for each part).
Pre-requisites: You have to be sponsored by a broker/dealer to schedule to sit for the Series 7 exam through FINRA
Exam fee: $250. Note that this includes a $90 NYSE development fee.
Exam dates: The Series 7 exam is administered Monday through Friday

What content specifically does the Series 7 exam cover?

The Series 7 exam covers content such as corporate securities (stocks and bonds), municipal securities and U.S. government securities, options, direct participation programs, investment company products, variable contracts and federal securities laws.

I fail the Series 7 exam….

First off you must be positive. If you study correctly you will pass this exam. However, if for some reason you don't get that magic 70% score and you fail your first attempt at the Series 7 exam, your sponsor can submit an amendment to reopen a window in which you can take the exam again. This window will not open until 30 days since your last exam attempt has transpired. At this point, your window will be open for 90 days.

There is no requirement for a sponsor firm to terminate your employment should you fail. However, every time you rewrite the exam, you must pay the required $200 registration fee. So your employer may require you to reimburse the fees paid to re-schedule the exam.

After three failed attempts, you must wait six months before you can re-take the exam for the fourth time. The six-month waiting period is appropriate since by that point you would have paid a total of approximately $600, and the cumulative expense by the fourth time would be $800. The six-month requirement is intended to provide a window in which an individual can ensure he or she is prepared for the fourth exam attempt. This process will then continue indefinitely, as there is no limit as to the number of times you can attempt the series 7 exam.

Don't Cheat!
Today, the testing centers require fingerprint verification when you take your test. A student was caught a few years ago on camera cheating in the testing room. This person had a tiny video camera device on his tie and a listening transmitter in his ear. He was actually filming his screen while someone else at another location was feeding him the answers. I didn’t believe this one at first but several people told it to me. Pretty amazing. Needless to say, he was nabbed and busted. Just study and you will pass....and maybe learn something too!