Passing the Series 7 Test is required by most broker/dealers for their new trainees who wish to work as a agent. The Series 7 Exam is a 250 multiple choice exam, which covers areas such as equity securities, debt securities, securities markets, investment banking, Limited Partnerships, rules & regulations, municipal bonds, investment companies, options, margin, etc.
Most students spend about four to six weeks preparing for the Series 7 Exam. You should plan on spending at least three to four hours each day while preparing for your Series 7. Although you might be tempted to take a day off now and then, it is not a wonderful idea. Since you probably won’t be using a lot of the information that you are studying each day, it is quite easy to forget what you have learned if you take too many days off.
You will end up taking the actual Series 7 with either a Pearson Vue or Thompson Prometrics testing center. The firm that you are working for will usually set up your Series 7 test date for you or if not, provide you with the information you need to set up your own test date. A grade of 70% is needed to pass the Series 7 and unfortunately, they don’t round up, so a score of 69.6 will be rounded down to 69. Because the Series 7 takes 6 hours and most testing centers only have a dozen or so computers, it usually takes about 2 weeks to get a test date. You should schedule your Series 7 test as soon as you have a target date in mind. If for any reason you aren’t quite ready by that date, you can always move your test date back. If you need to move the scheduled date, you must do so at least 2 business days before your test date prior to noon. If you wait too long to reschedule, you will be charged for the full price of the exam whether you take it or not.
Once you successfully pass the Series 7, your license will remain active as long as you are still affiliated with a firm. However, you will be required to a qualifying exam every so often to make sure that you remember what you have learned. However, if you leave your firm for over 2 years, you will be required to take your Series 7 Exam all over again.
If you are planning on taking your Series 7 test, put in the hours that it takes and take enough practice exams so that you can make sure that you are able to pass the first time. There is not much more frustrating than having to take the Series 7 all over again (and wait another 30 days) because you didn’t study quite enough.
Study hard and pass the 1st time. Good luck on your journey.
Steven M Rice is a partner of Empire Stockbroker Training Institute, which provides Series 7 Exam books, CDs, and classes for securities professionals. Steven M Rice has written over a dozen stockbroker instructional books including the Series 7 Exam for Dummies.
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