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Glossary

Series 7

The Series 7 is a FINRA-administered qualification exam that allows individuals working at a broker-dealer to become registered representatives and sell a broad range of securities.

What Is the Series 7?

The Series 7, formally called the General Securities Representative Examination, is a qualification test administered by FINRA, the Financial Industry Regulatory Authority, which is a self-regulatory organization that oversees US brokerage firms. Passing it qualifies a person to work as a registered representative at a broker-dealer, where the person can solicit and execute transactions in many types of securities. These include stocks, corporate and government bonds, mutual fund shares, and options contracts.

Who Takes It and Why

The exam is generally taken by people who have been sponsored by a FINRA member firm, which must register them before they can work in a sales role. Candidates study securities products, market structure, customer account procedures, and the rules that govern how recommendations are made. Many representatives also take a state securities law exam, and the Series 7 is often paired with the Series 63 or Series 66 for that purpose. Because the credential is required for many brokerage positions, it is a common first step in a career in securities sales.

How the Exam Works

The exam is computer-based, multiple-choice, and timed. Questions cover topics such as investment risk, the characteristics of municipal bond issues, the tax treatment of investments, and the suitability obligations brokers owe their customers. Candidates must reach a score set by FINRA to pass. The qualification can also lapse if a person stays out of the securities industry for an extended period, in which case the exam may need to be taken again under FINRA rules.

Why It Matters to Investors

The Series 7 establishes a baseline of knowledge, but it does not guarantee any particular quality of advice or conduct. It is one factor among many that an investor may consider when evaluating a broker. Investors can look up a representative's registrations, employment history, and disciplinary record through FINRA BrokerCheck, a public database, which provides a more complete picture than the exam result alone.

Updated October 24, 2026. For general education only; not financial, tax or legal advice.

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Related Terms

Self-Regulatory Organization (SRO)

A self-regulatory organization is a non-governmental body that creates and enforces rules for its members in a financial industry, under oversight from a government regulator.

Registered Representative (RR)

A registered representative is an individual licensed to buy and sell securities and offer investment products to clients on behalf of a broker-dealer, after passing required exams and registering with regulators.

Broker-Dealer

A broker-dealer is a firm or individual that buys and sells securities on behalf of clients as a broker, trades for its own account as a dealer, or does both.

Mutual Fund

A mutual fund is a pooled investment in which many investors combine money under professional management to buy a diversified portfolio of securities, with shares priced once per trading day.

Options

An options contract gives the holder a right, not an obligation, to buy or sell an underlying asset at a set strike price by expiration, for a premium paid to the seller.

Municipal Bond

A municipal bond is a debt security issued by a state, city, or other local government entity to fund public projects, with the issuer promising to repay investors with interest.

Financial Industry Regulatory Authority (FINRA)

FINRA is a private, non-governmental self-regulatory organization, overseen by the SEC, that writes and enforces rules for U.S. brokerage firms and their registered securities professionals.

Investment Adviser Representative (IAR)

An individual who gives investment advice on behalf of a registered investment adviser firm and is licensed or registered with state or federal securities regulators to do so.