How to Use This Study Guide

This comprehensive guide is designed to help you prepare for and pass the Series 7 exam on your first attempt.

Study Approach

Recommended Study Order

We recommend studying the chapters in order, as concepts build upon each other:

1. Start with equity and debt securities - These are foundational concepts
2. Move to specialized products - Investment companies, options, alternatives
3. Cover customer accounts and regulations - Apply your knowledge to real scenarios
4. Finish with rules and ethics - Tie everything together

Time Investment

Focus on Function 3 (73% of Exam)

The majority of the exam (91 questions) tests your ability to:

• Provide customers with investment information
• Make suitable recommendations based on customer profiles
• Understand product features, risks, and tax implications
• Maintain appropriate records

Study Tip: Spend the majority of your study time on product knowledge and suitability. Understanding when and why to recommend specific investments is crucial.

Using Quiz Questions

Each section includes quiz questions to test your understanding. For best results:

• Don't peek at answers - Try to answer before checking
• Read explanations - Even for questions you got right
• Note weak areas - Return to topics you struggle with
• Simulate exam conditions - Time yourself on practice tests

Key Areas to Master

Based on exam weighting and difficulty, prioritize these topics:

High Priority (Most Tested)

• Options strategies and calculations
• Municipal bond taxation and suitability
• Mutual fund share classes and fees
• Margin account calculations
• Suitability requirements

Moderate Priority

• Corporate and government bond characteristics
• Variable annuity features
• Retirement plan rules
• Order types and execution

Lower Priority (Fewer Questions)

• Account opening procedures
• Customer communication rules
• Processing and settlement

Formula Sheet

Throughout your study, note the key formulas you need to memorize:

• Current yield = Annual interest / Market price
• Yield to maturity calculations
• Margin requirements (Reg T, maintenance)
• Options break-even points
• Tax-equivalent yield

Good luck with your Series 7 preparation!