Study Package
The FINRA ® Series 7 is the General Securities Representative Qualification Exam is required of individuals soliciting the purchase or sale of corporate, municipal and U.S. government securities, options, direct participation programs, investment company products, and variable contracts.
Course includes many features including Online, Video Options, SOFTWARE, Mobile Tools and much more!
Prep Software
Series 7 Online Video Classes
Exam Textbook
Series 7 Mobile E Book
SIE exam and Series 7 Top Off
Series 7 and 63 Combo Package also Available
Mobile E Book
SERIES 7 FULL COURSE
Exam Details
Prerequisites: None
Exam Format: 250 multiple-choice questions (with 10 additional experimental questions)
Exam Duration: 3 hours for each part
Part 1: 125 questions (with 5 additional experimental questions)
Part 2: 125 questions (with 5 additional experimental questions)
Series 7 Outline of Topics Covered:
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 objectives
Open accounts, transfer assets, and maintains appropriate account records
Provides customers with information on investments and makes suitable recommendations
Obtains and maintains customer's purchase and sales instructions, enters orders, and follows up
Securities Exchange Acts of 1933 and 1934
Trust Indenture Act of 1939
Equity Securities including Common Stock, Preferred Stock, and their Trading Fundamentals and Rules
Option Basics, Strategies and Rules, including Equity (Stock) Options, Index Options, Debt Contracts and Foreign Currency Option Trading
Debt Securities including U.S Government Notes and Bonds, Municipal Bonds and Corporate Short Term Debt and Bonds
Sample Series 7 Questions - Option Strategies
A customer establishes a Long Stock Position buying 100 SHARES OF GHI at $70 Per share. The customer also Shorts 1 FEB GHI 75 CALL option receiving a $300 Premium.
What is the Customers Maximum Gain?
A) Unlimited
B) $800
C) $7300
D) $200
The correct answer is B $800. The customer gains when the stock rises. However, a call is written for additional Income but it limits the overall gain since the stock has a sell (call) price of 75. If the stock rises above and beyond 75, the stock will be used to cover the call option. Thus, the maximum potential gain on the stock is 5 points or $500 plus the $300 premium received on the option for a maximum potential gain of $800
What is the Maximum Loss?
A) Unlimited
B) $7300
C) $6700
D) $7200
The correct answer is C $6700. Losses on any long stock position are based on the stock falling. If the stock goes to 0, the $7000 value is all at risk. Since the investor received a $300 premium, the Maximum potential loss is $6700
What is the Break-Even Price?
A) 67
B) 73
C) 78
D) 72
The correct answer is A 67. When buying stock and writing covered calls, the break even is equal to the Maximum Loss and total cost. The customer spent $7000 (70) and received $300 (3) in premium, so the total cost per share spent is 67 which equals the break even
Career Opportunities
Having a Series 7 License offers many career options at any number of major or smaller brokerage firms. Being a Registered Representative provides an unlimited income opportunity for current and future commissions. The best highest earning financial and securities brokers generally have strong communication skills, persistence and the willingness to learn ongoing.
SERIES 7 INDEPENDENT BROKER
If you are currently licensed or if you have the ability to provide a network of potential investment clients, we are interested in talking to you about being an independent broker and financial adviser at one of our local offices or you can work remotely. Visit SERIES 7 SPONSORSHIP INDEPENDENT BROKER OPPORTUNITY