How Many Questions Is the Series 7 Exam?
Gain a comprehensive understanding of a vital financial industry certification, covering its design, scope, and prerequisites for success.
The Series 7 exam serves as a foundational qualification for professionals aiming to enter the securities industry. This examination is designed to assess the competency of individuals who will engage in various aspects of selling securities products. Successfully passing the Series 7 allows individuals to pursue careers involving a wide range of investment vehicles.
Series 7 Exam Structure
The Series 7 exam consists of 125 scorable multiple-choice questions. In addition to these, there are 10 experimental questions that do not count towards the final score, making a total of 135 questions presented to the candidate. These unscored questions are randomly distributed throughout the exam, and candidates are not informed which questions are experimental. The Financial Industry Regulatory Authority (FINRA) administers this examination.
Candidates are allotted 3 hours and 45 minutes to complete the entire exam. To pass the Series 7 exam, a candidate must achieve a score of at least 72%.
Series 7 Exam Content
The Series 7 exam measures a candidate’s knowledge across four primary job functions of a general securities representative. The largest portion of the exam, approximately 73%, focuses on providing customers with investment information, making suitable recommendations, transferring assets, and maintaining appropriate records. This section alone accounts for 91 questions.
Another significant area covers obtaining and verifying customer purchase and sales instructions, and processing, completing, and confirming transactions, which makes up 11% of the exam with 14 questions. Seeking business from customers and potential customers comprises 7% of the exam, totaling 9 questions. Finally, opening accounts after evaluating customer financial profiles and investment objectives accounts for 9% of the exam, with 11 questions.
Series 7 Exam Requirements
To be eligible to take the Series 7 exam, individuals must first pass the Securities Industry Essentials (SIE) exam. The SIE exam is an introductory-level assessment covering fundamental securities industry information, including product types, risks, market structure, regulatory agencies, and prohibited practices. Passing the SIE exam does not require sponsorship from a firm.
A sponsorship from a FINRA member firm is a mandatory requirement to sit for the Series 7 exam. The sponsoring firm initiates the registration process by filing a Uniform Application for Securities Industry Registration or Transfer (Form U4) on behalf of the candidate. This form provides FINRA with detailed personal and professional history of the applicant. The Series 7 license qualifies an individual for the solicitation, purchase, and sale of a broad range of securities products, including corporate securities, municipal securities, investment company products, variable annuities, direct participation programs, and options.