A career in the financial industry typically begins with passing the Series 7 FINRA qualification exam. As a license instructor for more than a decade, I have trained, tutored and offered emotional support to my students. It is important that financial professionals have first-rate information and training since the negative consequence of failing the test is real. At some firms, managers terminate employees who fail to pass the exam on the first attempt. Thankfully, termination of employment after failing the exam is not the standard practice among financial firms. To reduce the risk of failing the Series 7 exam, students utilize qualification exam experts such as my training firm, License Training Now LLC.
Unlike many standardized exams, previously used Series 7 questions have never been released to the public by regulators. That’s right; FINRA only publishes an exam-outline on their website. Unfortunately, it’s a list of definitions, FINRA rules and investment terms. At LicenseTrainingNow.com, we monitor and research the information on FINRA’s public outline to provide effective test prep training programs and top notch study materials.
So what do you do when your boss hands you a study manual thicker than the Oxford Dictionary? An optimal first step or strategy is to create a study schedule for the next four weeks and to prioritize reading the study manual completely. You are likely to discover that as you learn the material, the book begins to shrink down-at least in your own mind.
Most study manuals list the number of questions in each topic in the preface. For example, the actual Series 7 will have at least 50 municipal bond questions, and 50 option questions. Students should spend more time learning about the most likely tested topics. The Series 7 exam is a reading comprehension exam that focuses on regulations, investment products and the ethical relationship between registered representatives and investors. The Series 7 exam does not focus on math or accounting, although you will have questions asking you to manipulate formulas such as the municipal tax equivalent yield or to figure out the price to earnings ratio.
After reading the Series 7 book, students should begin taking the practice exams. I recommend doing the tests twice. The first time take the tests in open book mode: read the question and immediately read the answer. After completing all of the tests in this way, the practice exams should be taken again and then graded. Most students score below 70% in the first two or three practice tests. Based on my experience working with thousands of students, test scores improve as you become exposed to test points and get used to the writing style of the questions. As a goal, students should be grading near 80% correct on the practice exams.
If you are using a CD-ROM with a question database, the exam will automatically grade itself. Whether or not you are using a CD-ROM or keeping your test scores manually, the best approach to closing your knowledge gaps is to find the information in the book and review it. It is this back and forth process of taking a practice test, using the feedback and reviewing the topic in the book that will help you remember the material and achieve higher grades.
Besides proper study habits, it is important to equip yourself with the best study material and to experience a solid training class. Studying outdated information that is no longer on the test is a prescription for failure. I have found that Pass Perfect study materials and practice exams are well explained, accessible, and pertinent to the test. Pass Perfect study materials are sold on our website.
Also, the majority of test takers seek out a a Series 7 class, either in person or on the Internet. A successful training class points out the most important test topics and offers students the opportunity to clarify their understanding of difficult topics such as margin, regulations, and options. Still, a training program by itself will not guarantee a passing grade since it must accompany an honest effort of reading and test taking. If you have additional questions regarding the Series 7 or any licensing examination, feel free to ask us.
by Matthew Crosson (07/23/2009)
