FINRA Series 7 License
What is a FINRA Series 7 License?
The Series 7 license, formally known as the General Securities Representative Qualification Examination, is a certification financial professionals in the United States obtain to engage in buying and selling securities.
Administered by the Financial Industry Regulatory Authority (FINRA), it is designed to assess a candidate’s competency in the general securities industry. This license allows individuals to engage with a broad array of securities, such as stocks, mutual funds, options, municipal securities, and variable contracts.
Obtaining the Series 7 license is a significant step for our career advancement in the financial services industry. To sit for the exam, we must be sponsored by a FINRA member firm or a self-regulatory organization.
The exam covers various topics, including investment risk, taxation, equity and debt instruments, security markets, and regulations. A thorough understanding of these subjects is crucial to succeed.
The following table breaks down key components of the Series 7 exam:
| Section | Description |
|---|---|
| Securities | Knowledge of various types of securities and their characteristics |
| Investment Risk | Understanding of the risks associated with different investment products |
| Regulations | Familiarity with regulatory requirements and standards of the industry |
| Markets and Business | Insights into securities markets and business economic factors that affect them |
| Taxation | Overview of the tax implications surrounding investment products and transactions |
Once we pass the exam, we’re qualified to enter the field as general securities representatives.
However, it’s important to remember that the Series 7 license is one of many regulatory requirements necessary for professionals in the finance industry.