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The Series 7 license is a comprehensive certification that allows financial professionals to sell securities in the United States.
Administered by the Financial Industry Regulatory Authority (FINRA), it is one of the most sought-after licenses for those looking to establish a career in finance.
It is one of the toughest FINRA exams to pass, requiring extensive preparation and knowledge.
The exam covers topics such as debt securities, options trading, municipal securities, equity investments, taxation of security transactions, margin accounts, and retirement plans.
What is the Series 7 License
The Series 7 exam qualifies a candidate to solicit, purchase, and sell various securities products, such as corporate securities, municipal fund securities, options, direct participation programs, investment company products, and variable contracts.
In other words, the license enables a candidate to act as a registered representative of a broker-dealer and engage in the business of trading securities.
It is primarily used by stockbrokers, but other professionals use it such as financial planners, insurance agents, and wealth managers.
How Series 7 License Works
The Series 7 license is administered by FINRA, a self-regulatory organization that oversees securities firms and professionals in the United States.
Individuals looking to obtain a Series 7 license must meet the eligibility requirements, including being associated with a FINRA member firm, and passing the SIE exam and the Series 7 exam.
Once an individual passes the Series 7 exam, they are considered a registered representative and can sell a wide range of securities products, including stocks, bonds, mutual funds, options, and more.
Registered representatives are required to register with FINRA and their state securities regulator, and they must be supervised by a registered principal who holds a Series 24 license.
Eligibility Criteria For Series 7 License
To take FINRA representative-level qualification exams, candidates need to be sponsored by a FINRA member firm or an applicable self-regulatory organization (SRO) member firm that they are associated with.
To obtain the General Securities registration, candidates must pass both the SIE exam and the Series 7 exam, with the former being a corequisite to the latter.
Once the candidate has completed their qualification process, they will be assigned a representative number and placed on FINRA’s BrokerCheck to become a registered representative.
They will also be required to register with their state securities regulator and obtain any necessary licenses for their position.
Benefits of Having a Series 7 License
Having a Series 7 license can open up numerous career opportunities in the financial industry. Individuals with this certification can work as financial advisors, stockbrokers, investment bankers, and more.
Furthermore, it demonstrates an individual’s proficiency in financial analysis and ethical business practices, making them a valuable asset to any employer.
In conclusion, the Series 7 license is an essential certification for anyone looking to establish themselves in the financial industry. By obtaining this license, individuals can sell a broad range of securities products and demonstrate their expertise in financial analysis and ethical business practices. While it requires significant time and effort to prepare for and pass the exam, the benefits of holding a Series 7 license are well worth the investment.
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