If you’re hoping to sell securities, the Series 7 exam stands between you and your career. Passing it opens the door to selling a wide array of investment products.
Studying with practice questions is key to success. Getting familiar with the format and content of the test can dramatically reduce anxiety on exam day.
Understanding the Format of Series 7 Questions
The Series 7 exam will test your knowledge in a variety of ways. Here’s a rundown of the kinds of questions you can expect.
- Closed and open stem questions: Some questions will pose a complete question, while others will require you to complete a sentence.
- “Most/least/best” questions: These questions ask you to choose the most or least appropriate answer from a set of options.
- “Except/not” questions: These questions ask you to identify the exception or the statement that’s not correct.
- Complex multiple-choice questions: These questions often require you to work through multiple steps or show a deep understanding of the concepts.
Key Topics Covered in Series 7 Sample Questions
Expect to see sample questions about these topics:
- The Securities Act of 1933. You’ll need to know the rules for new securities offerings.
- Margin Accounts. Questions often cover the rules and risks of short margin accounts.
- Municipal Bonds. Look for questions about municipal bond opinions and the roles of bond counsel and municipal financial advisors.
- Stock Protection Strategies. You may encounter questions about using options, like puts, to protect stock positions.
What will the Series 7 exam questions look like?
The best practice questions will look and feel like the real exam.
They’ll ask you to apply your knowledge of key concepts to specific situations. For example, questions may ask you how to advise a client based on their financial goals and risk tolerance.
Knowing your terminology is extremely important. Here are some terms that you absolutely need to understand:
- Securities Act of 1933
- Short Margin Account
- Municipal Bond
- Bond Counsel
- Municipal Financial Advisor
- Stock Protection Strategies
- Options (puts)
The Bottom Line
If you’re studying for the Series 7 exam, be sure to work with sample questions regularly. Taking practice tests is the best way to reinforce what you’ve learned, hone your test-taking skills, and build your confidence.
Don’t just memorize facts and figures. Strive to understand the concepts behind the questions so you’re ready for anything on exam day.