How to prepare for a Series 7 exam

What is Series 7?

If you want to become a stockbroker or deal in equities for a member firm of the National Association of Securities Dealers (NASD) then it is vital that you pass the Series 7 exam. A series 7 exam success allows you to sell various types of securities such as corporate, investment company products, government securities, etc.

A Series 7 exam is the National Association of Securities Dealers license exam that allows its representatives to deal in securities such as stocks. Passing this exam is a perquisite to become a stockbroker dealing in stocks.

Prerequisites for taking Series 7 exam

• Must have sponsorship from a member firm of National Association of Securities Dealers (NASD)

To pass the Series 7 exam, a candidate has to be fully informed on the areas he/she will be tested. A good knowledge of these areas will ensure success because the exam itself is not too difficult.

The topical areas covered by Series 7:

The Series & exam concentrates mainly on the customers and their investments through the accounts held with a NASD member. It will seek to test you on the ability to mange accounts held by individuals and ways to monitor their holdings and react to external changes that may affect an organisation in which people may hold securities.

Below are some the rudimentary areas that a person writing the NASD Series 7 will be tested on. A good knowledge of the following areas will be tested in the Series 7 stockbroker exam:

Equities

It tests on how to provide information on investments and ways to make stock recommendations. This in many ways is the main aspect of being a stockbroker. A senior stockbroker will be expected to be highly competent at giving investment advice.

Business promotion

Here the participant will be tested on his/her ability to win business for their employer. This in effect, will teach the participant on marketing skills that will benefit them and their firm in an industry where there are plenty of competing firms trying to win market share.

Customer objectives

Another aspect of the Series 7 exam is the testing of the participant's ability to evaluate the financial standing of a customer of their firm to help them with their investment objectives.

Dealing with trades

This will test on the details of verification and finalising of trades after orders being placed by customers.

For a thorough understanding of the requirements for Series 7 Exam, you should refer to the content outline of the General Securities Registered Representative Examination.