If you want to score a high-paying job selling or trading securities in the U.S., you’ll need more than just a good resume. You’ll also need to pass a six-hour, 270-question exam commonly known as the Series 7, or the General Securities Representative Exam (GSRE).
The test covers everything you’ll need to know to be a broker, from fairly simple procedural concepts to complex rules surrounding compliance and risk. Passing the Series 7 is particularly critical because you’ll already need to be employed by a FINRA member firm, and you can’t do your job without a license. Failing is an easy way to get fired before ever really getting started.
While each exam has different questions, all cover the same general principles. Below are five questions you may see in some iteration, along with the correct answers and an explanation from Brian Marks, managing director at Knopman Financial Training, a New York-based FINRA licensing exam preparation firm. How would you do?