| Persons who wish to enter the securities industry to sell or trade securities must pass an initial examination in order to be eligible to register with a self-regulatory organization such as the New York or American Stock Exchanges or Nasdaq.
Qualification examinations must be passed to demonstrate competence in each area in which the person intends to work in the securities industry. Examinations have been developed by the National Association of Securities Dealers, the North American Securities Administrators Association, the New York Stock Exchange, and other self-regulatory organizations. Generally, the computerized examinations are administered by the National Association of Securities Dealers at test centers around the country.
The Series 7 or General Securities Representative Examination is an entry-level examination. Passing the Series 7 examination qualifies a person to register with a self-regulatory organization to trade:
- Corporate stocks and bonds;
- Rights;
- Warrants;
- REITs or real estate investment trusts;
- CMOs or collateralized mortgage obligations;
- Municipal securities;
- Options in equities, index funds, and foreign currencies;
- Investment company products such as variable annuities;
- Direct participation programs; and
- EFTs or exchange-traded funds.
The Series 62 or Corporate Securities Limited Representative Examination is another entry-level examination that allows a person to register with a self-regulatory organization for trading in corporate securities only, including:
- Corporate stocks and bonds;
- Rights;
- Warrants;
- REITs;
- CMOs; and
- ETFs.
The Series 55 or Equity Traders examination must also be passed by persons who seek to register as equity traders in the Nasdaq market. A Series 17 or Limited Registered Representative examination is available for persons already registered with the Financial Services Authority of the United Kingdom and who have passed examinations for Futures and Options Representatives and Securities Representatives. The Series 17 examination is a two hour, 100 question shortened version of the Series 7 examination.
Before a person may trade municipal securities, the Series 52 Municipal Securities Representative Examination must be passed. Additional examinations are available for different functions, including acting as a sales supervisor or as a securities principal, preparing and maintaining books and records of dealers, or meeting state requirements for those engaged in a securities business. Copyright 2010 LexisNexis, a division of Reed Elsevier Inc. |