What Topics Are Covered on the Series 7 Exam?
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
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📘 What Topics Are Covered on the Series 7 Exam?
The Series 7 exam, also known as the General Securities Representative Exam, is one of the most comprehensive FINRA licensing exams. It qualifies you to buy, sell, and solicit nearly all types of securities—making it a must-have for anyone pursuing a full-service investment career.
Here’s a breakdown of the key topics covered on the Series 7 exam:
🧠 1. Equity and Debt Securities
- Common and preferred stocks
- Corporate bonds, municipal bonds, Treasury securities
- Bond ratings, yields, and pricing
- Convertible securities and rights/warrants
💰 2. Packaged Investment Products
- Mutual funds
- Unit investment trusts (UITs)
- Closed-end funds
- Exchange-Traded Funds (ETFs)
- Real Estate Investment Trusts (REITs)
🏦 3. Options
- Calls and puts
- Basic and advanced options strategies (spreads, straddles, combinations)
- Option pricing and risk
- Characteristics and risks of standardized options (Options Disclosure Document)
🔁 4. Customer Accounts and Compliance
- Types of brokerage accounts (individual, joint, custodial, retirement)
- Account registration and documentation
- Anti-money laundering (AML), privacy, and cybersecurity
- Know Your Customer (KYC) and suitability requirements
- Margin and cash accounts
- Trading authorization and account transfers
📈 5. Trading, Execution, and Settlement
- Order types (market, limit, stop, stop-limit)
- Short selling
- Settlement timelines (T+1, T+2)
- Trade reporting systems (TRACE, TRF, ORF)
- Good delivery rules
📝 6. Regulatory Framework and Business Conduct
- FINRA, SEC, MSRB rules
- Communication with the public
- Supervision and recordkeeping
- Code of Arbitration and Code of Procedure
- Insider trading and other prohibited practices
📊 7. Economic Factors and Financial Analysis
- Interest rates, inflation, and economic indicators
- Balance sheets and income statements
- Fundamental and technical analysis
- Risk-return tradeoffs and investment objectives
📋 Series 7 Exam Breakdown by Function
| Function | Description | % of Exam |
|---|---|---|
| 1 | Seeks business and opens accounts | 7% |
| 2 | Provides investment information to clients | 9% |
| 3 | Makes recommendations and maintains relationships | 73% |
| 4 | Processes transactions | 11% |
Total questions: 125
Passing score: 72%
Time allowed: 3 hours and 45 minutes
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