Why Do You Want a Set 7 License?

What It Is:Series 7 is just a license that’s required before an individual may sell securities. Those that pass the exam for a Series 7 license are eligible to be always a registered representative of broker-dealers in the United States.How It Works/Example:To obtain a Series 7 license, the applicant must pass the Series 7 exam (also known as the Overall Securities Representative Examination). This test largely addresses the seven important functions performed by registered representatives: seeking organization for the broker/dealer, checking customer requirements and objectives, advising clients, managing customer records and account records, describing the securities markets and the factors that affect them, executing orders for clients, and monitoring customer portfolios. The Financial Industry Regulatory Authority( FINRA) contains 250 multiple-choice questions and administers the test.The Series 7 exam is six hours long. The candidate must answer at the very least 70% of the 250 questions precisely to pass.In standard, someone can’t legally suggest clients, solicit transactions, or execute transactions for clients until he or she has handed the Series 7 exam, acquired the corresponding license.Although a Series 7 license allows the holder to sell a wide variety of securities, it does not allow the holder to sell goods or commodities (this involves a three license ).Why It Matters:The Series 7 exam is definitely an essential step up ensuring that brokers recognize and have perfected a body of knowledge about areas, investment instruments, securities legislation, and ethical conduct. As a result, the clear presence of the Series 7 need advantages shareholders by requiring some level of a consistent knowledge base among brokers.

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