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Series 7 License - Professional Guarantee

By: Lara Newcomb

While there are many professionals who provide investment advice in one form or another, there are certain credentials and licenses financial professionals should possess before you entrust them with your savings.

Financial Advisor, Financial Consultant, Investment Advisor, Financial Planner, Registered Representative, Stock Broker, Variable Products Agent or Insurance Agent are many of the terms used in the financial services industry to describe the professional duties performed. Fee based or commission based compensation are terms which get thrown into the mix, causing client confusion. In reality, a licensed professional can have all of those titles, perform all of those services, which we just identified, and work in a fee or commission based capacity with a client.
In order to advise and transact stock, bond, REIT and limited partnership sales, as well as mutual fund, ETF's, variable annuity and variable universal life sales, a Registered Representative needs to attain a Series 7 license.

Brokerage Clerk is a special kind of a job in which one has to perform multiple tasks at the same time. Their responsibilities vary from computing; contacting clients take orders, processing of different paper works to take calls from clients. Brokerage clerks are widely seen in share trading, securities and commodities field. Another session where they are posted is in the field of accounting. They are also called as margin clerks, dividend clerks etc according to the department they work for. They have to look upon different client management process. If you are looking to become a licensed Stockbroker, you need to know about the Series 7.

The Series 7 is a 250 question exam that when passed, licenses you to act as a Registered Representative. Persons who receive this license are allowed to sell most securities. These securities would include: Stock, Bonds, Options, Mutual Funds and Annuities. The license itself is active while you are practicing it. Practicing with a Series 7 means that you are either employed or affiliated with a member firm. If you leave the business, your license will still remain active for 2 years after your last day with the firm. If you do not re-enter the business within 2 years, your license will expire. You would then have to re-take the exam again.
The Series 7 exam itself is comprised of many topics although not equally divided. Approximately 50 questions will be on Municipal Bonds alone. Other major topics include Options, Industry Rules and Customer Account handling.

The SERIES 7 is a multiple choice test graded on 250 questions administered on computer by an NASD testing vendor (Prometric Technology Center). 70% is needed to pass the SERIES 7 Exam. You will be given 6 hours to complete the exam in two 3 hour parts. Each question is worth .4 of a point. 175 questions correct will equal a passing grade. The score is not curved or rounded up so yes, if you get 174 questions right, you will get a 69.6% and you will fail. Each part also includes 5 experimental questions, which do not count on your total score. You will not know which ones are the experimental questions. Each exam is different, meaning if you take your test next to someone else, your test will not be the same. The percentages will be the same but the questions that each individual is tested on will be random. This applies to all Licensing exams but the difference between tests is less with smaller content exams like the Series 63.

Series 7 licenses will be a greater achievement for any common brokerage clerk. Trainings are provided by some firms itself for their clerk for better output. Now day’s graduates are selected or say given much more preference. For finishing Series 7 license one should be an employer of a firm, which is registered, and have to work for them at least four months.

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Series 7 License - Series 7 licenses will be a greater achievement for any common brokerage clerk.

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