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