Stockbrokers must pass the Financial Industry Regulatory Industry's (FINRA) Series 7 examination and the North American Securities Administrators Association (NASAA) Series 63 examination. Exam studies focus on investments, customer management and state laws and regulations.

General Securities

Stockbrokers are called general securities registered representatives. Licensed stockbrokers sell all types of securities products except commodities and futures. Stockbroker candidates are sponsored by a member firm of FINRA, and while each firm uses different study material, the study areas remain consistent.

Study Areas

The major study areas for the Series 7 exam are equity securities, debt securities, options and derivatives, securities markets and regulations, retirement plans, and investment companies and taxation. The Series 63 exam focuses on state-specific securities laws and regulations.

Prerequisites

Prior investment knowledge is not a prerequisite for stockbrokers. Candidates receive comprehensive training from their sponsor firms. Training is provided in-house, off-site, online or in any combination.

Self-study

Many test-preparation companies offer home-study programs designed to prepare candidates for taking the exams. An online search will find numerous offerings available with many types of study material.

Final Words

Because the pass rate of the Series 7 is 65 percent to 70 percent, it is considered one of FINRA's hardest exams. Twenty percent of the questions deal with options and options strategies---the part of the exam most test-takers rate as the most difficult.

Source:

Global Career Schools

Hedge Fund Law Blog

Resource:

Investopedia