Series 7 Exam

The Series 7 Exam Is Harder Than You Think

The Series 7 Exam is a test taken by individuals hoping to work in the financial industry, specifically those who want to buy and sell securities. It is given in various locations throughout the United States at various times during the year. The exam is extremely difficult and consists of two hundred and fifty multiple-choice questions and takes an extensive amount of time to take. The test is given in two parts, each lasting three hours.

The exam contains several sections, and passing it will require detailed and extensive knowledge of all aspects of securities trading. There are also higher-level exams given to those individuals hoping to qualify to run their own securities firms. These higher-level exams will cover some of the same material as the basic Series 7, but there will be quite a bit of additional content that will test the applicant above and beyond what an ordinary agent must know.

Every year, thousands of people fail their Series 7 licensing exam. While most people understand that it is difficult, most do not realize just how challenging it is. There are study guides and online tools available to assist individuals taking the exam. While there may be a few financial whizzes out there who can pass it on their own, that is not the case for the average person. The Series 7 exam is one of the hardest tests in the professional world, and test takers are urged to prepare accordingly.

The Series 7 License

The Series 7 License is obtained by passing the Series 7 exam, which is administered by the Financial Industry Regulatory Authority, commonly known as FINRA. The license is what gives brokers and others employed in the financial industry the authority to communicate with investors in the retail industry. It carries with it a great deal of responsibility and accountability, as the license holder will be expected to put the client's fiduciary interests ahead of his or her own. Recent financial scandals have given the securities industry a bad reputation, and practices once acceptable in financial circles are now grounds for dismissal or even prosecution. Anyone who obtains a Series 7 License will have no excuse for not knowing the relevant laws.

In order to obtain the license, individuals are tested on several different content areas relating to customers' needs, securities law, technical product knowledge and other issues relevant to securities trading. The Series 7 exam assesses the competencies of the test takers before the license is awarded. The test consists of two hundred and fifty multiple-choice questions. The content of the questions vary, and the test involves an extensive time commitment, as the test is six hours long. It is given in two separate increments of three hours. There are numerous study guides and tutorials available to aid individuals in getting satisfactory test scores and obtaining the Series 7 License.

Series 7 Study Tips

When it comes to Series 7 study, it cannot be stressed enough how important early preparation is. If you are hoping to get your securities trading license, you will want to have every advantage you can when you walk into the testing site. Test day jitters will be bad enough, but to make things even worse, you will be taxing your brain for a full day; six hours of grueling testing is enough to wear anyone down. Can you imagine putting yourself through six hours of mental torture only to find out that you failed the test? Well, that scenario happens to about one out of every three people who take the exam. Here are some Series 7 study tips to make sure this does not happen to you.

First, do not pin your hopes on a high priced Series 7 cram course or seminar. Educational and testing experts long ago declared that these methods of studying for difficult standardized tests are ineffective and, in many cases, downright harmful. A person who spends the week before the exam cramming for eight or ten hours a day is going to be mentally exhausted on the day of the test and will not perform at their best.

Second, understanding the peculiarities of standardized tests can give you a significant edge. Do not leave any question blank, even if you have no clue what the answer is, because a wrong answer is no worse than a blank answer; there is always the chance that you might guess correctly. Pace yourself, and do not get hung up on any one question. If it stumps you, come back to it after you finished all the questions in that section.

Third, take advantage of some of the numerous Series 7 study aids on the market-not the high priced seminars, but the study guides and flash cards that are offered. These methods of study may seem old fashioned and low tech, but the only reason they have been around for so long is because they work. Take a systematic approach, studying and reviewing a little bit at a time, and you will not be overwhelmed by the amount of material you have to learn. One of the biggest reasons for failing the exam is not taking advantage of Series 7 study aids.

Series 7 Training

There are many different Series 7 training aids available both online and in stores for those individuals in the financial industry preparing to take the exam. Training can range from mock testing, flash card tutorials, interactive training, group discussions, and study guides, all the way up to week-long cram seminars costing thousands of dollars. Because so many people take the test every year, a small industry has sprung up to meet the needs of this market.

The exam requires test takers to know an extensive amount of information, which means that training aids are pretty much a necessity. It is simply impossible to retain all that information on your own. Most people think they understand how hard the Series 7 test is, but they actually have no idea. Only after they walk into the testing site and begin trying to answer questions does the reality truly sink in. One third of all test takers fail the Series 7 exam every year because they did not spend nearly enough time preparing for the test. Do not make the same mistake they did. Take advantage of Series 7 training aids, and you will be much more likely to pass the exam on your first try.