Series 7 Exam Pdf
Posted By admin On 12.09.19Series 7 Practice Test The free Series 7 practice test will assist you in passing the Series 7 exam, which is a test that assesses the test-taker’s knowledge and ability to perform adequately in the stockbroker profession. The Series 7 exam will consist of 260 multiple-choice questions that cover five different functions. These functions are as follows: Seeks business for the broker-dealer through customers and potential customers; Evaluates customers’ other security holdings, financial situation and needs, financial status, tax status, and investment objective; Opens accounts, transfers assets and maintains appropriate account records; Provides customers with information on investments and makes suitable recommendations; as well as Obtains and verifies customers’ purchases and sales instructions, enters orders, and follows up. The Series 7 practice test will address the same content. The Series 7 exam will take a total of six hours to complete.
The Series 7 exam must be passed in order to take many other principal exams offered by FINRA. FINRA announced in 2015 that they will be making major changes to. The Series 7 exam is designed to assess the competency of entry-level General Securities Representatives. It is intended to safeguard the investing public.
What is a Series 7 license exam? This page is dedicated to the Series 7 Practice Test.
The Series 7 Practice Test will help prepare you for the challenging Series 7 Exam. This six hour test, broken into two – three hour segments, two hundred and sixty questions (which includes ten example questions), is designed to validate and assure that each sponsored candidate can perform all the basic requirements and functions of a registered representative. It is imperative for each candidate to have a diligent study plan to prepare for the Series 7. The Series 7 Study Guide provided by Mometrix, as well as the Series 7 Flashcards, are specifically designed to help you obtain the very best test score possible. What Does the Series 7 Practice Test Cover?
The series 7 Practice test covers the exact same information as the Series 7 Exam. That information includes a multitude of investment functions, including but not limited to the following:. How to promote business for the candidate’s sponsor, broker/dealer through existing and potential clients.
(68 questions – 27%). Overall Evaluation of client’s investment holdings which could be one or all of the following; stocks, bonds, corporate securities, municipalities, variable annuities, direct participation programs, options and government entities. (27 questions – 11%).
Processing account transactions and regulatory records and procedures. (27 questions – 11%). Disclose and distribute proper information and appropriate investment recommendations that co-inside with their individual investment goals. (70 questions – 28%). Validate and Confirm clients transactions, directions and facilitate orders correctly and efficiently. Update client’s investment portfolios and records upon completion in accordance with the regulations.
(58 questions – 23%) What is the Series 7 Exam? FINRA was created in September, 1974, to enforce laws based on the federal security regulations. It is the largest self-regulating organization that oversees broker/dealers.
This regulating authority and the Securities and Exchange Commission (SEC) are the two leading regulatory bodies to ensure that the integrity and fairness of the Stock market and to prevent a repeat of the stock market crash like the one in 1929. The Series 7 Exam is a way for FINRA to ensure that the registered representative is knowledgeable in the market and can navigate their clients through the highs and lows of stock market fluctuations. The test also covers many investment scenarios that require the best answer according the specific investment criteria and what is best for that specific client. The candidate must be sponsored by a financial company who is a member of FINRA or a SRO. Each time you sit for the test, the fee is $305.00. If you do not pass (72%), there is a 30- day cooling off period.
Series 7 Practice Questions. Corporate Stocks and Bonds.
Rights. Warrants. Real Estate Investment Trusts (REITs). Collateralized mortgage obligations (CMOs).
Municipal securities. Options-equity, index, and foreign currency. Investment company products/variable contracts. Direct participation programs. Exchange traded funds (ETFs) Mometrix Academy is a free source of information provided by Mometrix Test Preparation. If you find this helpful in your studies, there are concise study guides and flash cards that you may purchase to extend your Series 7 knowledge, as you prepare for the test. Purchasing these study tools increases your chances at a higher score and supports additional free content for test-takers like yourself.
The Series 7 Practice Test Content Detail The Series 7 practice test, which mimics the actual Series 7 exam, covers an extensive array of functions, tasks, knowledge and rule knowledge. The First Function The first function has 68 questions associated with how a Registered Representative finds additional business for the sponsoring Broker-Dealer. These questions focus on the tasks and rules associated with the process of finding these potential clients. When a registered representative contacts a potential client via in person, email, phone, mail, there are certain rules and regulations that must be met. Once the client is contacted, the way the investment products and services are discussed and presented must also follow proper guidelines. The use of advertising, seminars, lectures and group meetings with potential clients must also follow the proper protocol.
The Second Function The next function has 27 questions associated with how a Registered Representative evaluates security holdings and meets financial needs through proper investment objective appropriate to each individual client. Knowing the full spectrum of the client’s investment portfolio holdings, financial situation, tax status, and risk tolerance helps determine the suitable investments for the client. Opening accounts, transfers funds and maintaining appropriate account records is covered in 27 questions of the exam. The Registered Representative must obtain correct client information and documentation according to the federal regulations. Informs the clients of the different types of accounts available and their restrictions, including proper disclosures. The Registered Representative must also be able to recognize suspicious activity in an account and how to report to the regulatory authorities.
Series 7 Exam Pdf
If the account is a special account like; a power of attorney, trust documents, Transfer on Death, Corporate account, the proper documents must be collected. Retains copies and approvals in the client file, as well as, copies of all customer correspondence. Knowledge Statements The Series 7 practice tests covers seventeen major knowledge areas a Registered Representative must know, as well as, the corresponding rule. Here is an overview of what a candidate would see on the test. There are seventeen in depth, very detailed functions and tasks that are associated to multiple Rules and Regulations that must be memorized and retained for the Series 7 Exam.
Series 7 Exam
This is where the Series 7 Practice Test and the tools Mometrix provides you becomes vital in your test taking ability. The knowledge of regulatory requirements when dealing with the public and the ongoing education of registered representatives. This includes proper disclosure and delivery of disclosures for multiple investment securities and the requirements that must be followed. The rules on accepting certain forms of gifts or gratuities, non-cash compensation, referrals, government contributions and business entertainment. Concise knowledge of each potential and existing client by collecting the pertinent information in making an investment selection.
Knowing which account to open that coincides with the recommendation and the required approvals for those accounts. Required documentation and disclosures for each different account. Such account types are: Margin, Trust, UGMA, IRA, Joint with Rights of Survivorship, Variable Annuity, to name a few of the many different accounts available.
The rules and regulations for maintaining these accounts are extensive. Understanding proper business conduct and procedure when providing clients with investment recommendations and the prohibited conduct as well.
Series 7 Exam Cost
Disclosing all fees and protection of SIPC and FDIC. To know all the different types of security quotes, orders, requirements and execution of stocks and investments traded on the open market. Professional conduct and ethical regulations for all activity by a registered representative. Regulatory rules over conflict of interests, complaints, regulatory bodies and litigation. Knowledge of how the primary and secondary markets work on all the different types of investments. Stocks, new issues (IPOs), private placements, municipal securities and bonds, where they are traded and how they can be traded, as well as, the regulation and rules that must be followed. To see these list in their entirety, please visit Finra.org.
Sample Questions and Practice Test As you can see this test is exhaustively extensive in its coverage of the world of investments. This is why the Series 7 Practice Test is such an important tool for succeeding. The Mometrix Series 7 Practice Test will get you comfortable with the type of questions and how the questions are asked well before you sit down and take the actual Series 7 Exam. The Series 7 Test multiple choice questions have six different styles, as well as, problems that need to be calculated for puts, calls and margin on trading. Knowing how a question will be asked, by studying the Mometrix Series 7 Practice test, helps you answer the questions faster and with more confidence, since you will be familiar with the type of questions. The first example of a question is Closed-Stem, is a complete sentence that ends with a question mark. The four to five answer choices that you will choose from will be in the form of a complete or incomplete sentences.
The second style of question is the Open-Stem, which is an incomplete sentence with the answer choices completing the sentence. You should choose the answer that best completes the sentence. Thirdly, is the Most/Least/Best question, which will ask a question that requires you to choose the best answer possible from the choices given. If there is more than one correct answer, you should choose the best answer. Next is the EXCEPT or NOT style of question, which gives all correct answers to the question but one. You must choose the wrong answer.
The Complex Multiple-Choice “Roman Numeral” Format is asked in two different formats. You must either, determine the correct sequence of events of all the choices in one format, or select two or more choices that are both, or all, correct in the second format. Finally, there are the calculations of buying on Margin, Puts and Calls, which require you to know the specific formulas for the amount of trading allowed on margin. The Series 7 practice exam is a critical tool on passing the Series 7 Exam the first time sitting for the test.
Remember, this test is paid for by the Registered Representative’s sponsored Broker/Dealer. At approximately $300 a sitting for the test, it is vital to pass the test the first time, to show your dedication to learning everything you can about your new career. Do not underestimate this test and go unprepared. Purchasing the Series 7 Practice test a month or two ahead of your scheduled test, and diligently studying daily, will greatly increase your test results. Don’t forget to click on the Series 7 Study Guide and the Flashcard System to add that extra layer of studying.