Free Series 7 Exam Flashcards
Memorize 50 essential terms and definitions for the Series 7 General Securities Representative Exam. See the term, recall the definition, then flip to check yourself.
ADR (American Depositary Receipt)
A negotiable certificate representing shares of a foreign company trading on U.S. exchanges. Issued by U.S. banks holding the actual foreign shares. Benefits: trades in USD, dividends paid in USD, easier than buying foreign shares directly. Subject to currency risk and political risk.
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About These Series 7 Flashcards
These 50 flashcards are designed to help you memorize key terms and definitions for the Series 7 General Securities Representative Exam. Each card shows a term on the front and its definition on the back—the classic flashcard format for vocabulary memorization. Use these alongside our practice questions to build both recall and comprehension.
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Frequently Asked Questions
What is the Series 7 exam pass rate?
The Series 7 pass rate is estimated at 65-72%, though FINRA does not officially publish this data. At FINRA's 2019 annual conference, they reported a 71% pass rate for candidates who passed both the SIE and Series 7 from October 2018 to March 2019. To pass, you must score 72% by correctly answering 90 of 125 scored questions. The exam costs $395 and requires firm sponsorship.
What are the hardest topics on the Series 7 exam?
Options is the #1 most difficult Series 7 topic, particularly spread strategies (debit/credit spreads, butterfly spreads). Other challenging areas include: margin calculations and maintenance requirements, municipal securities taxation and suitability, suitability analysis across different account types, and convertible bond calculations (parity prices, arbitrage). Function 3 topics comprise 73% of the exam (91 questions), so mastering investment strategies and customer recommendations is critical.
How long should I study for the Series 7 exam?
FINRA recommends 80-100 hours of study time for candidates with finance backgrounds. Without prior financial knowledge, plan for 150 hours. Experts at Knopman Marks Financial Training specifically recommend 80-100 hours, with 20-30 hours dedicated to practice exams. Most candidates study 3-8 weeks, with 10-15 hours weekly. The Series 7 covers the broadest range of securities products of any FINRA exam.
Is the Series 7 the hardest FINRA exam?
The Series 7 is considered the most challenging representative-level FINRA exam due to its breadth of content covering all general securities. However, the Series 9/10 supervisor exams (200 combined questions) and Series 79 (Investment Banking) are arguably more difficult. The Series 7's challenge comes from testing options, equities, debt, municipal securities, packaged products, and direct participation programs all in one exam with a 3-hour 45-minute time limit.
What happens if I fail the Series 7 exam?
If you fail the Series 7, you must wait 30 days before retaking it (same policy for the first and second failures). After three consecutive failures, the waiting period extends to 180 days. Each retake costs $395, and your sponsoring firm must re-enroll you through the CRD system. You'll receive a new 120-day enrollment window to schedule your appointment. There's no lifetime limit on attempts.
Do I need a Series 7 to become a financial advisor?
It depends on your role. The Series 7 (General Securities Representative) is required if you'll recommend individual stocks, bonds, options, or municipal securities. If you only sell mutual funds, variable annuities, and insurance products, the Series 6 is sufficient. For fee-based investment advice without securities sales, you may only need the Series 65. Most full-service financial advisors hold the Series 7 plus either Series 66 or Series 63.