If you are looking to become a licensed Stockbroker, you need to know about the Series 7. An Exam must be taken to get your license to become a broker. The Series 7 exam itself is comprised of many topics although not equally divided. Approximately 50 questions will be on Municipal Bonds alone. Other major topics include Options, Industry Rules and Customer Account handling Security+ certification.
The Series 7 is a 250 question exam that when passed, licenses you to act as a Registered Representative. Persons who receive this license are allowed to sell most securities. These securities would include: Stock, Bonds, Options, Mutual Funds and Annuities. The license itself is active while you are practicing it. Practicing with a Series 7 means that you are either employed or affiliated with a member firm. If you leave the business, your license will still remain active for 2 years after your last day with the firm. If you do not re-enter the business within 2 years, your license will expire. You would then have to re-take the exam again.
The SERIES 7 is a multiple choice test graded on 250 questions administered on computer by a FINRA testing vendor (Prometric Technology Center). 72% is needed to pass the SERIES 7 Exam. You will be given 6 hours to complete the exam in two 3 hour parts. Each question is worth.4 of a point. 175 questions correct will equal a passing grade.
The score is not curved or rounded up so yes, if you get 174 questions right, you will get a 69.6% and you will fail. Each part also includes 5 experimental questions, which do not count on your total score. You will not know which ones are the experimental questions. Each exam is different, meaning if you take your test next to someone else, your test will not be the same. The percentages will be the same but the questions that each individual is tested on will be random. This applies to all Licensing exams but the difference between tests is less with smaller content exams like the Series 63.