Key Takeaways
- The Series 7 is the General Securities Representative qualification exam.
- Exam format: 125 scored + 10 unscored questions in 3 hours 45 minutes.
- Passing score is 72% and the SIE is a prerequisite.
- Series 7 is the broadest license, covering equities, debt, options, funds, and alternatives.
- Function 3 (recommendations and records) is the largest exam weight.
About the Series 7 Exam
Quick Answer: The Series 7 is a 125-question, 3 hour 45 minute FINRA exam with a 72% passing score and $300 fee. Often called the "full license," it qualifies you to sell virtually all securities—stocks, bonds, options, mutual funds, and variable products. You must pass the SIE first and be sponsored by a FINRA member firm.
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 many scored questions are on the Series 7 exam?
What is the passing score for the Series 7 exam?
Which function carries the GREATEST weight on the Series 7 exam?
Which of the following is a PREREQUISITE for taking the Series 7 exam?