Series 7: Licenses the holder to sell all sorts of securities merchandise except
The Series 7 exam licenses the holder to sell all varieties of securities merchandise except commodities and futures. Known officially as the General Securities Representative Qualification Examination, the Series 7 examination and its licensing are administered with the aid of the Financial Industry Regulatory Authority (FINRA).

Stockbrokers within the United States need to pass the Series 7 exam to acquire a license to alternate. The Series 7 exam makes a specialty of funding danger, taxation, equity, and debt gadgets; packaged securities, options, retirement plans, and interactions with customers for potential securities enterprise professionals.

This introductory-level examination assesses a candidate’s know-how of primary securities enterprise statistics which includes ideas essential to running inside the agency. The purpose of the Series 7 license is to set a level of competency for a registered consultant or stockbroker to work inside the securities enterprise. The Series 7 license is an essential requirement for access-degree broking. The licensing examination covers an extensive type of economic terms and subjects as well as securities recommendations.
Key Factors

1. The Series 7 is an exam and license that entitles the holder to sell all forms of securities products except commodities and futures.
2. The Series 7 exam covers subjects on investment threat, taxation, fairness and debt instruments, packaged securities, options, and retirement plans.
3. The cause of the Series 7 license is to set up a level of competency for registered representatives in the securities corporation.

Candidates who skip the Series 7 exam can alternate many securities, at the side of stocks, mutual rate variety, alternatives, municipal securities, and variable contracts. The Series 7 license no longer covers selling real estate or life coverage products.
In addition to obtaining the Series 7 license, many states require that registered representatives bypass the Series sixty-three exam, moreover called the Uniform Securities Agent State Law Exam.

Series 7 Requirements
Since October 2018, Series 7 candidates have been required to bypass the Securities Industry Essentials (SIE) examination as well as the Series 7 exam to maintain the General Securities registration.
According to FINRA, the SIE is an introductory-level examination that "assesses a candidate’s know-how of simple securities company data including ideas essential to going for walks within the corporation, such as kinds of merchandise and their risks; the structure of the securities corporation markets, regulatory groups and their skills; and prohibited practices." If you want extra facts on the SIE, FINRA's SIE exam content material cloth outline offers greater info.

Candidates who want to take the Series 7 exam need to be backed through a FINRA member agency or a different relevant self-regulatory organization (SRO) member company. The member business enterprise needs to report a Form U4 (Uniform Application for Securities Industry Registration or Transfer Form) for the candidate to be registered for the licensing exam. Non-FINRA members need to use the Test Enrollment Services System (TESS) to sign in for the exam.
FINRA governs the activities of securities corporations and registered dealers, making sure that every person who sells securities products is qualified and tested.

Important
Candidates who need to take the Series 7 examination have to be sponsored through a FINRA member firm or extraordinarily relevant self-regulatory organization (SRO) member company.
Series 7 Exam Structure
The Series 7 is structured as follows:

1. Seeks Business for the Broker-Trader from Customers and Potential Customers: nine questions
2. Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives: 11 questions
3. Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets, and Maintains Appropriate Records: 91 questions
4. Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions: 14 questions
5. The Series 7 exam has hundred twenty-five multiple-preference questions, lasts 225 mins, and expenses $300. The passing score is 7%.
6. Before Oct. 1, 2018, the Series 7 exam contained 250 questions protecting 5 maximum important technique skills.
7. The examination duration is six hours, has no stipulations, and is charged $305. A score of seventy percent was required to skip.

FINRA does no longer offer applicants any bodily certificate as proof of examination of entirety. Current or capable employers who choose to view proof final touch ought to get admission to these records through FINRA's Central Registration Depository (CRD). Completion of the Series 7 examination is a prerequisite for lots of other securities licenses, together with the Series 24, which allows the candidate to oversee and control dealer sports.

Differences between series 7 and CFA:

The Series 7 license and CFA certification are generally acquired for different careers within the financial industry, although many financial industry professionals possess both. Series 7 licensed representatives tend to work in financial market sales, often as stockbrokers or financial advisors. Keep in mind that a Series 7 is required to solicit, purchase, and sell stocks, bonds, mutual funds, options, direct participation programs, and variable contracts in any financial position. The Series 7 license can expire if a representative is not employed with a FINRA-registered organization for two years.

Although some Series 7 licensed investment advisors also hold a CFA charter, most careers requiring a CFA don’t require a Series 7 license. Unlike the Series 7, the CFA certification does not expire. As such, it is a certification that can be used in marketing your skills throughout your career. With the CFA charter and membership with the CFA Institute, shareholders have the opportunity to further their education annually through continuing education courses. In general, the CFA can be a good pathway to a higher-paying job with greater latitude for responsibility and management authority.
In terms of curriculum and difficulty, there is a big difference between the Series 7 and the CFA. The Series 7 license covers basic securities market terminology, products, and job functions through both the SIE exam and the Series 7 exam.
 The CFA curriculum is much more quantitative and theoretical, covering the areas of quantitative analysis, securities valuation, economics, financial reporting, accounting, ethics, and more.\

Maintaining the Series 7 License:
Series 7 License holders must complete the Regulatory Element, a computer-based continuing education, within 120 days from their second anniversary from the date of obtaining their license.
They will then need to meet the continuing education conditions for maintaining their FINRA registration every three years. The regulatory CE program adheres to the basic rules and regulations, complying with the rules and issues related to sales and communication.

Series 7 License Renewal
The Series 7 license is valid for the entire period of working with a FINRA-member firm or self-regulatory organization (SRO). The license will expire when you are terminated or leave the firm and remain unemployed within two years at another FINRA-member firm or SRO.
 

Importance of the Series 7 License

1. The Series 7 license is essential for those seeking a career in the securities industry.
2. It allows individuals to engage in many activities, including public offerings and private placements of corporate securities, direct participation programs, and exchange-traded funds.
3. A candidate who passes the Series 7 exam is qualified to work with various types of securities, including corporate securities, options, municipal fund securities, direct participation programs, variable contracts, and investment company products.
4. This allows them to provide a broader range of services to their clients and gives them the ability to help meet the needs of a variety of investors.
5. The Series 7 license also prepares you to deal with your client's portfolios that focus on daily tasks such as opening accounts, evaluating customer security holdings, and making suitable recommendations.

Recommended Order for Taking Securities Test
Candidates for the Series 7 exam should also pass the co-requisite SIE exam and Series 63 exams to be fully eligible to buy and sell securities.

The best practice for taking the exams required to earn your Series 7 license is to pass the SIE first, then focus on the Series 6 and/or Series 7, and finally, the Series 63. This advice comes from Kaplan, the publisher of this exam's most widely adopted textbook.

Final Thoughts
Series 7 license is a must for anyone seeking a career in the securities industry. It allows individuals to engage in various activities, including public offerings and private placements of corporate securities.