Nasd Series 7 License

Written by Amy Hall
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The NASD Series 7 license exam is administered by the National Association of Securities Dealers (NASD) which provides an individual with the credentials necessary to make various types of trades with all types of corporate securities, with the exception of commodity futures contracts. This is also a necessary step in order for a member firm associate to register with the NASD. The Series 7 exam must be passed in order for a person to take many of the other principle exams offered by the NASD.

It is also important to note that the NASD Series 7 license exam is a New York stock Exchange generated exam. It is accepted by the NASD for anyone employed by a broker who will trade various types of securities. This exam is by far the most comprehensive of all the registered representative exams.

Preparing for the NASD Series 7 License

Basically, the Series 7 examination covers the Series 6, 22, 42, 52, and 62 exams. If you pass the Series 7 exam, you will not need to take the Series 6 exam to sell mutual funds, nor the Series 22 exam to sell limited partnerships. Test topics include: Equity Securities, Debt Securities, Options, Trading Markets, Customer Accounts, New Issues, Investment Companies, Taxes, Regulations, and Analysis.

There are 250 questions on the exam, with a six hour time limit. There are many wonderful home study aids that can really help you prepare for this exam, such as books, CD-Roms, disks, cassettes, and videos. You should be able to take some practice quizzes that will help you hone in on areas that need more attention.


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