Series 7 exam

In the United States, the Series 7 exam, also known as the General Securities Representative Exam (GSRE), is a test for entry-level registered representatives, that demonstrates competency to buy or sell security products such as corporate securities, municipal securities, options, direct participation programs, investment company products and variable contracts. The Series 7 is administered by the Financial Industry Regulatory Authority (FINRA), an industry regulatory agency.

The Series 7 exam ensures a baseline level of proficiency for individuals starting their careers in the financial industry. It is particularly important for newly hired personnel who may lack prior exposure to finance-related subjects during their university education. Passing the Series 7 exam is often a requirement for other FINRA exams, including those related to options trading and managerial roles.

Permitted activities
A candidate who passes the Series 7 exam is qualified for the solicitation, purchase and/or sale of all securities products, including corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts.

Covered activities and products include:


 * public offerings and/or private placements of corporate securities (stocks and bonds),
 * rights,
 * warrants,
 * mutual funds,
 * money market funds,
 * unit investment trusts (UITs),
 * exchange-traded funds (ETFs),
 * real estate investment trusts (REITs),
 * options on mortgage-backed securities,
 * government securities,
 * repos and certificates of accrual on government securities,
 * direct participation programs,
 * venture capital,
 * sale of municipal securities and
 * hedge funds

Eligibility
The corequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018. In October 2018, the 250-question Series 7 exam was replaced by the current top-off exam that is now taken in conjunction with the SIE exam. (A correlative change was made to the Series 6 exam.). In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO). Employers will sponsor candidates as part of employment.

There is no education requirement.

Structure
The Series 7 is a three-hour, forty-five-minute exam. It is held in one four-hour session. There are 125 questions on the test. Candidates have to score at least 72% to pass. The SIE Exam and the Series 7 Exam are co-requisite exams.

Average study time is between 80 and 150 hours depending on current financial knowledge.

The Series 7 exam tests candidates on four functions.

Registration costs
As of June 24, 2023, the registration cost is $300.