The Securities Institute of America - Series 7 Study Guide 2022 + Test Bank

The Securities Institute of America proudly publishes world class textbooks, test banks and video training classes for the following Financial Services exams:

Securities Industry Essentials Exam / SIE Exam

Series 3 exam

Series 4 exam

Series 6 exam

Series 7 exam

Series 9 exam

Series 10 exam

Series 22 exam

Series 24 exam

Series 26 exam

Series 39 exam

Series 57 exam

Series 63 exam

Series 65 exam

Series 66 exam

Series 79 exam

Series 99 exam

For more information visit us at: www.SecuritiesCE.com

Copyright The Securities Institute of America, Inc. All rights reserved.

Published by The Securities Institute of America, Inc.

ISBN 978-1-937841-39-3 (Paperback)

ISBN 978-1-937841-40-9 (ePub)

About the Series 7 Exam

Congratulations! You are on your way to becoming a registered representative licensed to conduct business in all general securities. The Series 7 exam will be presented in a 125 questions, multiple-choice format. Each candidate will have a total of 3 hours and 45 minutes in which to complete the exam. A score of 72 percent or higher is required to pass.

The Series 7 is as much a knowledge test as it is a reading test. The writers and instructors at The Securities Institute have developed the Series 7 textbook, exam prep software, and videos to ensure that you have the knowledge required to pass the test and to make sure that you are confident in the application of the knowledge during the exam.

Candidates who wish to take the Series 7 exam must also successfully complete the SIE exam to become fully registered.

The Series 7 exam is presented in multiple-choice format on a touch screen computer known as the PROCTOR system. No computer skills are required, and candidates will find that the test screen works in the same way as an ordinary ATM machine. Each test is made up of 125 questions that are randomly chosen from a test bank of thousands of questions. Each Series 7 exam will have several practice questions that do not count towards the final score. The test has a time limit of 3 hours 45 minutes and is designed to provide enough time for all candidates to complete the exam. Each Series 7 exam contains questions that focus on four critical job functions performed by Series 7 registered representatives. In order to successfully complete the Series 7 exam, you will need a full understanding of the activities and knowledge required to perform these job functions as well as a complete understanding of the rules that regulate these job functions. The Series 7 exam will be made up of questions from the following areas:

For most candidates, the combination of reading the textbook, watching the videos, and using the exam prep software is enough to successfully complete the exam. It is recommended that candidates spend at least 60 hours preparing for the exam by reading the textbook, underlining key points, watching the video class, and completing as many practice questions as possible. We recommend that candidates schedule their exam no more than one week after completing their Series 7 exam prep.

Test-Taking Tips

• Read the full question.
  • Identify what the question is asking.
  • Identify key words and phrases.
  • Watch out for hedge clauses, for example, except and not .
  • Eliminate wrong answers.
  • Identify synonymous terms.
  • Be wary of changing answers.

A Series 7 registered representative may conduct business in all general securities products, including:

• Stocks, bonds, options, and rights.
• Exchange-traded funds (ETFs).
• Exchange-traded notes (ETNs).
• Warrants.
• American depositary receipts (ADRs).
• Mutual funds.
• Investment company products, direct participation programs (DPPs), real estate investment trusts (REITs), U.S. government securities, and municipal securities.
• Collateralized mortgage obligations (CMOs).

A score of 72 percent or higher is needed to pass the Series 7 exam.

Candidates who wish to take the Series 7 exam must also successfully complete the SIE exam to become fully registered.

Ask your firms principal to schedule the exam for you or to provide a list of test centers in your area. You must be sponsored by an FINRA member firm prior to making an appointment. The Series 7 exam may be taken any day that the exam center is open.

You should only take a picture ID with you. Everything else will be provided, including a calculator and scratch paper.

The exam will be graded as soon as you finish your final question and hit the Submit for Grading button. It will take only a few minutes to get your results. Your grade will appear on the computer screen, and you will be given a paper copy from the exam center.

If you do not pass the test, you will need to wait 30 days before taking it again. If you do not pass on the second try, you will need to wait another 30 days. If you fail the test again, you are required to wait 6 months to take the test again.

About This Book

The writers and instructors at The Securities Institute have developed the Series 7 textbook, exam prep software, and videos to ensure that you have the knowledge required to pass the test and to make sure that you are confident in the application of the knowledge during the exam. The writers and instructors at The Securities Institute are subject-matter experts as well as a Series 7 test experts. We understand how the test is written, and our proven test-taking techniques can dramatically improve your results.

Each chapter includes notes, tips, examples, and case studies with key information; hints for taking the exam; and additional insight into the topics. Each chapter ends with a practice test to ensure that you have mastered the concepts presented before moving on to the next topic.

Some of the material contained in this book is designed to cover the information tested on the SIE exam. This material has been included intentionally to ensure candidates who have already passed the SIE exam have maintained their knowledge of that material. Many concepts tested on the SIE may also be tested on the Series 7 exam. Those concepts also provide the foundation for your understanding of the material tested on the Series 7 exam.