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INTRODUCTION

The NASD nka FINRA Series 7 and Series 63 are generally the licensing tests that one must pass in order to become a stockbroker. (N.B. The Series 63 is not required in some states). In order to take the exams, one must first obtain "sponsorship"/employment from a NASD/FINRA or exchange member firm (note: in limited instances a state can serve as your sponsor if you qualify as a Registered Investment Adviser (RIA)). In addition, one must submit a set of fingerprints and undergo a basic background check.  Typically to register with a firm and consequently the exams you have to complete a U-4 application. On this application you must disclose such things as prior work history, criminal background (if any), etc.

The exams are given daily (you call up the testing center and set up your own appointment) at "professional testing centers" (e.g. Pearson Professional Centers or Prometric Testing Centers) located throughout the United States.

Our goal of this site is to educate ANYONE interested in obtaining these licenses because we realize how hard it is for "outsiders" to enter the securities industry.

OTHER EXAMINATIONS

There are other examinations administered by the NASD/FINRA and the various exchanges other than the Series 7 and Series 63. For example, the Series 4 - Registered Options Principal and the Series 24 - General Securities Principal. One of the original creators of this website has passed the Series 4, 7, 8, 24, and 63, but this site will focus primarily on the Series 7 and 63. For a list of all examinations/registrations (and some other breakdowns), click here: Series Examinations.

MATERIALS AND EMPLOYERS

A lot of people have been contacting us about where to get NASD/FINRA Series 7 and Series 63 materials and how to obtain "sponsorship." Consequently, we have begun to compile a list of material vendors and firms who are willing to employ you. The list of material providers is far from complete. We've done our best to check the quality of the products and services offered. As always, email us with problems, questions, or concerns. The job center is a great starting place for entering the securities industry.

INTERACTIVITY - DIGITAL TRAINING IS HERE

The Series 7/63 Information Page has completed the conversion of over 100 Series 7 type practice questions, which are now available absolutely free. We invite you to try out our Sample Questions.

SECURITIES RELATED LINKS

This site is expanding. In addition to providing information regarding the FINRA Series 7 and Series 63, this site will be providing general information on working in the securities industry and other related links.

EMAILS AND TESTIMONIALS

Finally, we receive email messages almost on a daily basis. Rest assured, that we try to respond to each and every message as soon as possible. Before emailing, please read the Frequently-Asked-Questions (FAQ) and the various pages of this site. To help expedite a response, we suggest that you use an email address which we can readily "reply" to.

A lot of the email messages make us feel good about the work we are doing for the public. Therefore, we have begun to compile a list of visitor testimonials and are placing it on-line. If you do not want your comments shared, just let us know.


Series 7 and 63 Examination Breakdowns


Series 7 - General Securities Representative

The Series 7 examination is a six hour 250 multiple-choice question exam which is taken in two consecutive three hour sittings (125 questions each). There are actually 260 questions, but only 250 count toward your score (the other 10 are considered experimental questions). The cost of the examination is $265.00 (as of 7/16/10)

The exam covers the six following sections:

  1. Advertising, Qualifying Customers, Industry Regulations (~ 30 questions)
  2. Securities Instruments (~ 85 questions)
  3. Handling Customer Accounts, Taxation, Margin (~ 35 questions)
  4. Securities Markets, Order Handling, Confirmations (~ 35 questions)
  5. Economics, Securities Analysis, Sources of Financial Information (~ 30 questions)
  6. Portfolio Analysis, Investment Strategies, Retirement Plans (~ 40 questions)

A "passing" score is 70% and there is NO penalty for guessing. Each question consists of four possible choices. Some questions ask you to refer to an Exhibition Pamphlet/Book. The Exhibition Pamphlet/Book typically contains examples of financial information (e.g. clippings from the Wall Street Journal). Finally, a calculator (with just basic functions) is usually provided for you. However, remember to ask your specific test center.


Series 63 - Uniform Securities Agent State Law

The Series 63 examination is a seventy-five (75) minute, 60 multiple-choice question exam. The cost of the examination is approximately $96.00 (as of 7/16/10)

The exam covers the five following sections:

  1. State Securities Acts and related rules and regulations 36 (60%)
    A. Regulation of Investment Advisers, including state-registered and federal covered advisers [3]
    B. Regulation of Investment Adviser Representatives [3]
    C. Regulation of Broker-dealers (e.g., definition, registration, post-registration requirements) [12]
    D. Regulation of Agents of Broker-dealers [6]
    E. Regulations of Securities and Issuers [6]
    F. Remedies and Administrative Provisions [6]
  2. Ethical practices and fiduciary obligations 24 (40%)
    A. Communications with clients and prospects [8]
    B. Compensation [4]


A "passing" score is 70% and there is NO penalty for guessing. Each question consists of four possible choices.