Become A Stockbroker

Written by Pete Nicholls
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You can become a stockbroker when you take and pass the NASD Series 7 stock broker exam. This is the most comprehensive of all the registered representative exams given, as it covers a wide range of topics that are also covered on some of the other Series exams. For instance, the NASD Series 7 exam covers information that is contained on the Series 6, 22, 42, 52, and 62 exams. This basically means that if you pass the Series 7 test, not only do you become a stockbroker, but you do not have to sit for these above mentioned exams.

The Series 7 test is a New York Stock Exchange generated exam, accepted and administered by the National Association of Securities Dealers. It is geared towards individuals who are employed by a broker or dealer who will trade various types of securities. The Series 7 exam is a prerequisite for individuals who wish to also sit for the Series 66 exam or the Series 4 exam.

Become a Stockbroker When You Pass the Series 7

The NASD series 7 General Securities Representative exam is the main qualification for stock brokers, and it is usually taken in conjunction with the Series 63 Uniform State License Exam. Many brokerage houses require that all of their employees hold this coveted qualification. This is the gold standard license which can truly open more doors in the financial services industry than any other license.

There are 250 multiple choice questions on the exam, and candidates are given six hours to complete the test. Test topics include Equity Securities, Debt Securities, Options, Trading Markets, Customer Accounts, New Issues, Investment Companies, Taxes, Regulations, and Analysis. Candidates should be aware that the bulk of the test questions are centered around Debt Securities and Options, with 100 total questions in these two categories.

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