The Securities Test Guide
By Emily Irwin, Tests.com Contributing Writer
In order for an individual to become a representative of a broker-dealer for corporate securities and to register with the Financial Industry Regulatory Authority (FINRA),they must pass the Series 7 exam. The Series 7 exam is also a prerequisite for other securities exams, such as the Series 63 and Series 66 exams. FINRA creates and distributes each of the securities exams mentioned in this article.
The Series 7 exam, also known as the Qualification Examination for General Securities Registered Representatives, is usually the first step for individuals who are interested in working as a registered representative for corporate securities. The exam is administered by FINRA and was created to ensure that each individual who is working as a registered representative is able to complete the tasks required of the position. The exam is meant to test applicants at an entry level, although other exams may test at a more difficult level.
The exam is made up of 260 multiple-choice questions, of which only 250 are scored. The test taker is given six hours to finish the exam, including three hours for the first section of 130 questions and three hours for the following section of 130 questions. The exam fee is $265.
Test takers must score 70% to pass, though if one fails the exam, it can be taken again in 30 days.
To register, candidates must submit the registration fee, a U-10 form, and an application to FINRA. Applications are available at finra.org/Industry/Compliance/Registration/index.htm.
The Series 63 exam, or the Uniform Securities Agent State Law Exam, is an exam required by most states in the US for individuals working in securities trading. The exam includes 65 multiple-choice questions, and test takers are given 75 minutes to complete the exam.
As with the Series 7 exam, a score of 70% is passing, and the exam can be retaken after 30 days if necessary. To register, candidates should file either a U-4 or a U-10 form, available at nasaa.org/Industry___Regulatory_Resources/Exams/1027.cfm. FINRA assesses a $96 application fee.
The Series 66 exam, also known as the Uniform Combined State Law Examination, is accepted by all states as the exam for agent and investment adviser qualification. The exam was created so that individuals wishing to qualify in both areas do not have to take both the Series 63 and Series 65 exams, although both exams continue to be offered. The Series 7 exam is a prerequisite for the Series 66 exam.
The exam may be requested by a firm on the U-4 form, and the cost is $110. Applicants must score 71% on the exam to pass and must also wait 30 days after the exam if they wish to retake it.
The exam includes 110 multiple-choice questions, 100 of which count toward the final score.
Interested in taking the Series 7, 63 or 66 exams? Take a look at our Securities Test Directory.