Series 6 Exam vs. Series 7 Exam: An Overview

The Financial Industry Regulatory Authority (FINRA) offers a variety of licenses that must be obtained by passing examinations before registered representatives or investment advisors can conduct business. Two of the most popular licenses are the Series 6 and Series 7 exams. The Series 6 license allows a 澳洲幸运5开奖号码历史查询:registered representative to sell only specific types of investment 𓆏products, whereas the Series 7 license allows the rep to sell a wider variety o🎃f securities.

Series 6 Exam

The Series 6 exam is officially called the Investment Company and Variable Contracts ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚProducts Representative Qualification Examination. It's a multiple-choice test with 50 questions, and a score of 70 or better is required to pass. Candidates have 90 minutes to complete the exam, and ♐five additional unscored questions are asked during the exam.

Upon successful completion of the exam, representatiꦅves are qualified to solicit, purchase, and sell certain packaged products like mutual funds and variable annuities—products commonly sold by financial planners.

Candidates must be affiliated with and💫 have sponsorship from a FINRA member firm befoꦅre registering for the exam.

Series 6 questions are broken down into four sections related to job functions as outlined in the table below:

To conduct business in annuity or insurance products, a representative must also pass a state life insurance exa꧃mination. Common jobs utilizing the Series 6 license include financial advisors, retirement plan specialists, investment advisors, and private bankers.

Candidates must register with the FINRA through their sponsoring firm to transact with certain securities, and licensees must fulfill 澳洲幸运5开奖号码历史查询:continuing education requirements to maintain their S♐eries 6 license.

Series 6 Allowable Products

After 澳洲幸运5开奖号码历史查询:successful completion of the exam, a Series 6 licensed representative can recomme♎nd and sell to clients:

• 澳洲幸运5开奖号码历史查询:Mutual funds (closed-end funds on the initial offering only)
• Variable annuities
• Variable life insurance
• 澳洲幸运5开奖号码历史查询:Unit investment trusts (UITs)
• Municipal fund securities, such as 澳洲幸运5开奖号码历史查询:529 plans and local government investment pools

However, holders of the Series 6 license are not permitted to sell corporate or municipal securities, direct participation programs, stocks, or options. 

Series 7 Exam

The Series 7 is officially called the General Securities𒈔 Representative Qualification Examination. It is a multiple-choice exam with 125 items lasting three hours and 45 minutes. The passing gra🍷de for the Series 7 exam is 72 or higher.

As with the Series 6, candidates must be affiliated with and have sponsorship from a FINRA member firm before registering for the Series 7 exam. The Series 7 exam includes four functions:

The only major types of securities or investments that Series 7 licensees are not authorized to sell are commodities futures, 澳洲幸运5开奖号码历史查询:real estate, and life insurance.

Candidates must be sponsored by a FINRA member firm or other applicable self-regulatory organization member firm prior to partaking in the exam. The sponsoring firm must file a Form U4 prior to the candidate sitting for the exam as part of the application process. Though the FINRA does not issue physical certificates as proof of completion for the exam, sponsoring members can view completion information through FINRA's Central Registration Depository.

Series 7 Allowable Products

The Series 7 license allows financial advisors to engage in buying and selling virtually all securities-related investment products. In addition to everything covered under the Series 6 exam, products include 澳洲幸运5开奖号码历史查询:common and preferred stock, bonds, exchange-traded funds (ETFs), real estate investment trusts (REITs), and options. It is the examination required for stockbrokers and is a prerequisite for many 澳洲幸运5开奖号码历史查询:other securities licenses.

Key Differences

The Series 6 license and Series 7 l♐icense are two of the most popular of what FINRA calls its qualification exams. Passing them is required to obtain a license to buy and sell certain types of investments for clients, as brokers, financial planners, investment managers, and other financial professionals commonly do.

The S🦩eries 7 is the tougher but more comprehensive exam of the two. It allows you to deal with almost any type of security, from stocks to bonds to investment trusts and funds, that a professional or retail investor would want. Just about all stockbrokers and money managers have the Series 7 license, as well as the Series 6.

In contrast, Series 6 is more limited. It mainly offers a license to deal in retail-investor-oriented products, like mutual funds and insurance annuities. It notably excludes individual equities, bonds, and ETFs—all of which are securities actively traded on financial exchanges. Financial planners who sell products from investment management compani꧃es and insurance companies to individuals could probably get by with just passing the Series 6.

The Bottom Line

You must be licensed before you can sell securities in the United States. Depending on the type of securities you plan to sell, you must pass one or more exams to get your license. Two of the most popular exams are the Series 6 and Series 7, which are offered by FINRA. While the Series 6 exam focuses on the sale of packaged securities like mutual funds, the Series 7 exam is more comprehensive and includes additional securities like stocks and bonds. Both are multiple choice and must be completed in a specific time, and you must be sponsored by a firm to sit for the exams.