How to Study for Series 7 Exam

The Series 7 exam is a test given by the National Association of Securities Dealers. Once passed, individuals receive a license that allows them to deal securities like stocks and equities. All stock brokers must past the Series 7 before dealing stocks. The exam consists of 250 multiple-choice questions in two sections. Brokers must receive a score of 70 percent or higher to pass. Forget the rumors that say passing the Series 7 exam is impossible. All it takes is a little preparation and you'll be dealing securities in no time.

Difficulty: Moderately Challenging

Instructions

1. Learn the basics about the securities exchange, bonds, stocks and laws regulating the stock market. Find this information online, in books at your local library or in money magazines.

2. Review equities. The exam tests you on making stock recommendations and on giving investment information to clients.

3. Study marketing techniques. The Series 7 exam assesses your ability to promote your company and bring in new customers.

4. Learn how to evaluate a customer's financial options. The Series 7 exam asks the participant to evaluate potential customers' financial information and explain their best financial options. Practice your skills on unsuspecting family members or by answering questions from a Series 7 test preparation book.

5. Practice completing trades. The Series 7 exam asks you to finalize trades and other transactions. Learn the trading procedures in detail. The exam requires you to give specific information about each step in the process.

Tips & Warnings

• The exam includes questions about multiple securities, options, the New York Stock Exchange, customer accounts, regulations, direct participation programs, government securities, cooperative securities, packed securities, economic analysis, margins, taxation and retirement plans.

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