0.1 About the Series 7 Exam
The General Securities Representative Examination (Series 7) qualifies an individual to trade corporate securities, municipal securities, investment company products, variable contracts, options, and direct participation programs.
Key FINRA Exam Takeaways
- 125 scored multiple-choice questions plus 10 unscored experimental questions (135 total).
- Time limit: 3 hours 45 minutes (225 minutes) at a Prometric test center or via online proctoring.
- Passing score benchmark: 72% (90 out of 125 scored questions).
- The Securities Industry Essentials (SIE) exam is a corequisite; both are required for registration.
- Broker-dealer sponsorship via Form U4 is mandatory to open the Series 7 exam window.
Exam Structure and Timing
The exam consists of 125 scored questions and 10 unscored experimental pre-test questions randomly distributed throughout the exam. Candidates have 225 minutes (3 hours and 45 minutes), which allows approximately 1 minute and 40 seconds per question.
Corequisite and Licensing Requirements
To become registered as a General Securities Representative, candidates must pass both the SIE exam and the Series 7 top-off exam. While anyone can take the SIE without sponsorship, the Series 7 requires formal sponsorship from a FINRA-member firm via Form U4.
T+1 Settlement Modernization
Effective May 28, 2024, SEC Rule 15c6-1 established standard T+1 settlement for US equities, corporate bonds, and municipal bonds. All calculations and delivery rules on the 2026 Series 7 exam reflect T+1.
| Job Function | Core Subject Matter | % of Exam | Questions |
|---|---|---|---|
| Function 1 | Seeks Business for the Broker-Dealer (Prospecting & Comms) | 7% | 9 Qs |
| Function 2 | Opens Accounts & Obtains Financial Profiles (KYC / AML) | 11% | 14 Qs |
| Function 3 | Investment Info, Suitable Recommendations & Product Knowledge | 73% | 91 Qs |
| Function 4 | Obtains & Verifies Purchase and Sales Instructions (Trading / Execution) | 9% | 11 Qs |
A candidate is preparing for the FINRA Series 7 examination. Which of the following statements regarding the exam format and administration is TRUE?