How to Prepare for the Series 7 Exam

The Series 7 exam tests potential stockbrokers to ensure they have the foundation skills needed to make basic securities trades. Administered by FINRA (Financial Industry Regulation Authority), this entrance exam is required before an individual can apply to take more specialized exams in the financial field. Although it is not impossible to pass, the Series 7 exam does require most people to put in extensive preparation. Read on to learn more about preparing for the Series 7 exam.

Things You'll Need

• Sponsorship Registration papers and fee Exam outline

Instructions

1. Get sponsored. In order to take the Series 7 exam, you will need to be sponsored by a company in the finance industry that is a member of either FINRA or is an SRO (Self-Regulatory Organization). An SRO is a nongovernment organization that has the power to regulate and enforce industry standards.

2. Register and pay the registration fee. Visit the FINRA website (http://www.finra.org) for information on how and where to register for the exam. Sometimes, your company will take care of all the preparations for you, so be sure to check with your sponsor.

3. Get familiar with the exam. Know that it will consist of 260 questions administered over 6 hours. Also, familiarize yourself with the content by downloading the exam outline from the FINRA website (http://www.finra.org/web/groups/industry/@ip/@comp/@regis/documents/industry/p038201.pdf).

4. Study. The Series 7 exam is not the type of test you can pass with cramming, so be prepared to spend months in advance studying. Online or in-classroom study courses are a great way to learn the material, such as those offered via http://www.cpatrainingcenter.com/series_7_exam_preparation.asp and http://www.abtrainingcenter.com/Series7.asp. You can also purchase study guides at your local bookstore or online.

Tips & Warnings

• Find a study buddy. Having someone to study with can keep you on track and make studying easier for both of you.

• Do not put off studying until the last minute. If you do, you will most likely be looking at taking the exam again.

References

• FINRA Website