Why Obtain a Series 7 License Officially known as the General Securities Registered Representative Examination (GSRE), obtaining a Series 7 sponsorship and passing this comprehensive exam is inherently a diversified and risk-assessed It’s your ticket to the advanced levels of the financial services industry, including building a successful investment portfolio.
The Financial Industry Regulatory Authority (FINRA) oversees all activity and testing within the industry and defines the scope and sequence of testing. If this entitlement definition intrigues you and inspires you to make up your mind, check out all the benefits of getting a Series 7 license.
Before we discuss the many benefits of obtaining a Series 7 license, consider the multiple commitments required before taking the Series 7 exam.
To complete before the Series 7 exam
1. Pass the Security Industry Essentials (SIE) exam.
This preliminary exam focuses on a broad compilation of financial topics. Stocks, Fixed Income, Options, Derivatives, Securities Markets, Regulators, Compliance and more. It also includes questions about capital markets, financial product risk, trading, account management, and potentially illegal activities.
2. Pass the Series 6 exam
(Investment and Variable Contract Products Representative):
To take this exam, you must be sponsored by a FINRA member or SRO and pass the SIE exam.
Passing the Series 6 exam will give you the knowledge to sell variable annuities and mutual funds, and you will be certified to buy and sell packaged investment products (mutual funds, variable life insurance, etc.). They are typically hired by those entering the field as financial advisors or retirement planners.
3. Pass the Series 7 exam
(General Representative of Securities):
Series 7 exams also require Series 7 sponsorship and background checks from a FINRA member or SRO.
To prepare for the exam, you need to develop your competencies in the field of securities and options. You will also need to study securities regulations and investment products such as stocks and bonds. You will also be licensed to sell certain insurance products, so you will learn about annuities, whole or term life insurance, and the regulations associated with each.
Benefits of having a Series 7 license
A huge amount of work has been done to obtain a Series 7 license. What are the benefits of first studying, concentrating and taking exams? Let’s explore each one as we go along.
First, you can become a stockbroker. This is a highly respected position in the industry and offers opportunities for further growth.
Second, it can solicit, buy and sell public offerings and provide capital raising services to private companies. This role allows me to focus my interests towards potential in the capital raising services sector and other areas that are particularly active in the trade industry.
You can solicit, buy and sell money markets, mutual funds and hedge funds. This important role is also the role of interest to users with Series 7 licenses. Specializations in this field can be complex and can be of interest at that point. It is often of interest to potential investors in terms of return on potential earnings.
What about salary and commission benefits as a result of earning a Series 7 license? The expert-level knowledge gained from these exams will help you reach six figures within the industry. Higher salaries apply to those living in metropolitan areas, and additional training, such as becoming a lawyer, also stacks as the basis for a Series 7 license.
The process of getting a Series 7 license may have been daunting, but after you’ve completed your studies, taken your exams, and made your way to the top, the benefits and prospects of increasing your personal wealth are great. Additionally, consider taking the FINRA Series 79 and 82 exams if you have an interest in specifically designated areas.
Successful completion of the Series 79 exam certification prepares you to become an investment banker, advising corporate clients on bond and equity proposals and overseeing mergers and acquisitions. The Series 82 exam requires sponsorship from an entity registered with the Securities and Exchange Commission (SEC), as private placement securities will be solicited and sold as part of a full stock offering.
For continued success, consider earning both a Series 79 and a Series 82 certification to add to your Series 7 license. Each certification promises additional expertise and a more promising future throughout your career.