# Series 7 exam

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.

## Permitted activities

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:
* public offerings and/or private placements of corporate securities (stocks and bonds),
* rights,
* warrants,
* mutual funds,
* money market funds,
* unit investment trusts (UITs),
* exchange-traded funds (ETFs),
* real estate investment trusts (REITs),
* options, options strategies and mortgage-backed securities,
* government securities,
* repos and certificates of accrual on government securities,
* direct participation programs,
* venture capital,
* sale of municipal securities and
* hedge funds

## Eligibility

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.

## Structure

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.
| Test Breakdown by Function | Number of Questions | Percentage of Test Questions |
| (F1) Seeks Business for the Broker-Dealer through Customers and Potential Customers | 9 | 7% |
| (F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 11 | 9% |
| (F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 91 | 73% |
| (F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions | 14 | 11% |
| TOTAL | 125 | 100% |

## Registration costs

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