How Does a Person Prepare for the Series 7 Exam?

Economics

Study economics. While most econ majors go on to careers in academia or as authors, the stock market also makes just as much sense. Basic laws of supply and demand and the world according to Adam Smith are both necessary tools for anyone who desires a real understanding of securities trading. This is the best foundation to prepare for the Series 7 Exam.

Regulatory

Learn the regulatory laws that surround securities. Industries are regulated and deregulated all the time. Securities are no different. Become intimate with Securities and Exchange Commission laws such as Sarbanes-Oxley. Not only will this give a potential test taker an understanding of the official rules, it will also dictate the climate that surrounds how consumers are protected.

Test Components

Review the components of the test and understand the weight that each ones carries. The majority of the questions in the Series 7 Exam cover providing customers with investment information and making suitable recommendation. Make sure that the test taker has an expert understanding of this section along with handling customer accounts and account records. These two areas cover 59% of the test. The test is broken down into seven sections, but the three largest sections cover 80% of the test. A passing score of seventy is required to pass the test. The third-largest section covers understanding and explaining the securities markets' organization and participants to customers.

Flash Cards

Use flash cards. Several keys topics will be covered in the test. Use the flash cards to determine recognition of items such as:

Fannie Mae
Short Selling
REITs
Authorized Stock
Dividends
Warrants
401(k) Plans

Create 50-100 flash cards with these types of keywords and make sure that there is an understanding of what each one means.

Practice Test

Take the practice test. In order to understand what it feels like to take a six-hour exam, it will be necessary to practice. Get into the routine of sitting for long periods, eating the right combination of carbs and protein and remaining alert throughout the entire test.

Understand The Overall Significance of the Series 7 Exam

It is said that the Series 7 Exam is one of the hardest test that anyone will ever take. The test takes six hours and has over 250 questions. Individuals who take on this daunting task must use every tool at their disposal to conquer this test. Remember to go into the test as relaxed and as prepared as possible.

Resources

• Test Preparation