If you’re looking to work in the stock market as a broker or dealer, you will need to take a closer look at how to study for the Series 7 exam. This exam requires you to understand the principles and the ethics of the U.S. stock market and make sure that you know how to do so moving forward.
We’re going to take a look at what this exam is, who needs to take it, what you need to do ,to pass, and even some great study tips that will help you better prepare for this exam. There’s no reason for you to fall behind when you could be getting an even better opportunity with this exam. You just need the right Series 7 study guides.
What is the Series 7 Exam About? Who Is It For?
First, let’s take a look at just what the Series 7 Exam is and who it’s going to be for. This exam is designed for stockbrokers and dealers who work within the U.S. stock market. These individuals are responsible for guiding their clients properly in decision making as well as making sure that they understand how the market works.
Entry-level registered representatives or those who want to be a broker, a dealer, a general securities representative, or really anyone involved with financial securities, options, and contracts should pass the Series 7 exam. If you’re working for clients within this field, you will be required to do so, and you’ll need to be sponsored in order to do it. The company that sponsors you must be a financial company, and they must be a member of an SRO or FINRA.
In this exam, you will be required to answer questions about finding and acquiring business from customers, evaluating a customer’s financial profile and objectives and opening accounts, providing accurate information regarding investments including making recommendations and transferring assets plus maintaining correct records, obtaining and verifying purchase and sales instructions from clients as well as agreements and going through the process of processing, completing and confirming all transactions.
Since these are all things you will need to be able to do when you begin to work in this field, the exam will require you to prove that you know what you are doing and can execute the skills necessary for your clients as needed.
Is the Series 7 Exam Hard?
This exam is designed to be difficult because it’s designed to make sure that you actually know what you’re doing and that you will provide the right type of support for your clients in the future. If you take the time necessary to study, however, and you make sure that you are studying the right materials, you will have a much easier time, and you will be more successful in the long run.
Studying properly will tone down the exam’s difficulty and make sure that you feel more comfortable. This exam is considered easier than taking the CFA (and of the three levels), but it’s important to note that still only 65% of people actually pass the exam the first time they attempt it. If you are looking to take this exam, you’ll want to do what you can to make sure you’re one of that 65% but don’t feel too bad if you aren’t able to muster it.
What’s the Passing Score for the Series 7?
There are a total of 125 multiple choice questions on the new version of the Series 7 exam. This new Series 7 format is less than the 250 that used to be on the exam, which can be a benefit and a drawback. Because there are fewer questions, you’ll have less that you need to know on the exam, but you will have fewer questions to help you boost your score, and you’ll have a shorter time frame in which to complete the exam.
You’ll get 135 actual questions, with 10 being filler questions that are considered ‘pretest’ questions. These don’t actually count toward your score, but since you will not know which questions they are (they are scattered throughout the exam), you will still need to answer all of these questions and apply the best knowledge you can to all of them.
In order to get a Series 7 passing score, you need to get at least 72%. This is the same as the previous version of the exam,, but because there are fewer questions,, you will need to get a higher percentage of the questions correct to get the passing score. The scores are also given out based on a process called equating. This means that scores are given out slightly differently based on the exact test that you get.
Because some tests may be slightly more difficult than others because of the combination of questions, the scores are averaged out slightly differently to accommodate this. This ensures that each candidate has the same difficulty level overall in order to get a passing score.
How to Long to Study for the Series 7 Exam?
If you’re looking to start studying for the Series 7 exam, but you’re not quite sure how long to plan for, it’s a good idea to start as early as possible. If you already have a background in finance and you’re planning to take the exam, you’ll want to devote at least 80 to 100 hours to studying. This should be relatively intense studying that’s designed to immerse you in the material.
If you haven’t worked in the finance sector, then you will need to spend even more time on your studies. Without a finance background, you should expect to spend at least 150 hours studying for this exam. It’s designed to test you on your financial knowledge, and if you have nothing to help you, then you’re going to struggle getting started.
Keep in mind that these are averages, and you may need to study slightly more or even a lot more in order to feel comfortable with the exam. You don’t want to study only the minimum and still feel nervous on exam day. Instead, be willing (and give yourself time) to study more than 100 – 150 hours if necessary so you can feel better about your potential on exam day.
What are the Best Study Guides for the Series 7 Exam?
Are you looking to get study guides and the best Series 7 study materials to help you with the exam? Well, then you’re going to want to look at several of the top names in exam prep. Just like the exams you took in high school and throughout your college years, the same companies are great at providing you with exam prep materials even after you’ve graduated and entered the workforce.
Kaplan offers a financial sector that includes Series 7 classes and materials that are designed to help you pass your test. Not only that, but they advertise that they can help you pass on your first try, and everything is done entirely online, which makes it more convenient for you to follow along and learn the material that you need to know.
Test Prep Books also has a Series 7 study guide that’s designed to help you prepare and gives you plenty of practice questions and even a practice exam that you can go through. This book is designed to make sure that you feel more comfortable on exam day and also that you are able to study quickly and with just a single book to help you.
The For Dummies line also has a book on the Series 7 exam that you can work with. This study guide is designed to make the exam as easy as possible and to make sure you can read through the material quickly. It includes plenty of material as well as an online practice section that will give you yet another way to study.
How to Pass the Series 7 in a Week?
For those who are really looking to cram, it’s essential to have a good background in finance. If you’re trying to pass the Series 7 exam in a week without any financial experience, chances are you’re going to struggle even more. But if you have a background in finance, you may be able to get a little further ahead and do better on your exam.
If you want to pass your Series 7 with only a single week of studying, you want to start by taking a practice test. This will show you where you need to work the hardest and which areas you’re struggling in. That way, you can focus as much of the study time that you do have on those areas and spend very little time on the areas that you’re already comfortable with.
Getting a study buddy is a good idea as well since you can work together on the material and quiz each other. Plus, you’ll have someone that is likely good at some of the areas you struggle with and vice versa, which makes it easier for you to practice and learn the things you’re not so good at.
Devote as much time as you can as well. Remember, even though you only have a week to prepare doesn’t mean that you don’t have any time. Try to set aside as many hours as you can each day to study and try to go through your reading materials, flashcards, courses, or anything else that you might have.
Finally, try to take an online, self-paced course. These are great because they walk you through all of the information, and if it’s self-paced, you can do it in a short amount of time. Make sure you’re taking as much time as you can, but if you can move through the course quickly, you’ll get more material in a short span of time.
7 Strategies to Study for the Series 7 Exam
Let’s take a look at some of the different strategies you should be using when studying for your Series 7 exam. You want to make sure that you’re doing as well as possible, and you definitely don’t want to miss any of the vital material. So, let’s take a closer look at some of the Series 7 study tips that might be able to help you.
- Create a study plan. You want to study a little bit every day while you’re working on your Series 7 exam. So create a Series 7 top off exam review that gives you a little bit of time. Depending on how long you have until your exam, you may want to spread the time out, so you have about an hour or so each day. Don’t worry if you get a little less some days and some days you get a little more, but try to average close to an hour for your Series 7 study time.
- Focus on the most important concepts. The majority of the test (approximately 75%) is focused on providing customers with information, transferring assets, maintaining records, and making appropriate recommendations. That means this is the area that you should be focusing most of your attention on. Once you’ve got this well under control, you’ll be better prepared to look at the other topics.
- Read the entire question every time. It’s easy to skim over a question and think you know what it’s asking. And when there’s an answer available that seems to fit what you think you just read, you’re even more likely to pick it and move on. But it’s imperative that you look closely at each of the questions and read every word so you don’t make a simple mistake.
- Practice like the real test. You want to be as prepared as possible when you walk into test day, so make sure you’re not just taking practice tests but that you’re simulating the actual test environment. That means sitting down for the entire time that the test will take and that you’re going through the process the same way you would on test day.
- Use different study methods. There are plenty of other ways that you can study for the exam, and it’s a good idea to use as many of them as you possibly can. That includes studying with flashcards and audio and even with online quizzes or courses and textbooks or Series 7 study notes. The more types of study materials you have, the better prepared you’re going to be.
- Ask questions. You don’t have to know absolutely everything. Whether you have some financial background or not, you may not know all of the things that you’re reading or finding in your reference materials. Work with someone who has more experience or a better understanding of the material to get help when you need it. That might be someone at your job, a teacher, a mentor, or anyone else, but having someone to turn to is going to be helpful to you in the long run.
- Study when you have time. Even though you should be scheduling in study time for your exam, make sure that you always have materials with you to study. This allows you to practice and study whenever you have some extra time, like when you’re traveling or on a lunch break. Even little bits of time will help you get better prepared and feel more confident when it comes time to take the exam. Every bit will add up.
Wrapping Things Up: How to Study for the Series 7 Exam
If you’re thinking about taking the Series 7 exam, the first thing you need to do is create a plan. You don’t want to walk into taking this exam completely blind. So, make sure you have enough time to study correctly, especially if you don’t have a background in finance. You don’t want to be one of the 45% of people who fail the exam the first time around. You want to be one of the 65% who passes.
Also, make sure you have plenty of different options when it comes to how you study and start studying early. You should make sure to have some type of study materials with you wherever you go so you don’t have to worry about having downtime that you’re not using. Every bit of study time is going to help you when it comes to test day. You should be spending at least 80 – 100 hours on studying, but if it takes you more than that to feel comfortable, that’s great too. The most important thing is that you’re confident on test day. Keep an eye on your Series 7 exam dates and get studying.
Check out this article on how many times you can take the Series 7 exam.
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