By Kevin Leland
FINRA seeks an injunction, destruction of offending materials, and punitive damages for trademark infringement, misappropriation of trade secrets, breach of contract and violations of the California Business and Professions Code, against Christina Leahy, Donald Leahy, Samuel Leahy and Elizabeth Leahy who collectively took 64 FINRA standardized examinations, including the FINRA secure tests, which is a highly unusual number of times to take examinations. Read more…
Now here is a brilliant idea! It turns out this mother and her children were repeatedly taking the FINRA Series 7 Exam in order to memorize the questions, and sell them through their online business; ‘Training Consultants.’ See, that’s my problem. I’m smart enough to lie, cheat and steal with the best of them –but I choose not to. Why? Cuz as I said in my first post: I want people to like me. Here’s the rub: No one really does anyway! I am really thankful that at least the members of my immediate family…pretend to. So, just the same, I’ll be your Training Consultant, for FREE! How ya like me now?
Let’s talk a little more about the Stockbroker Exam. According to WikiPedia:
The exam is a six-hour, 260 question test (250 of which count towards the final score) that is owned, maintained and administered by the Financial Industry Regulatory Authority (FINRA), which covers a broad range of investments including stocks, bonds, options,limited partnerships, and investment company products (e.g., open- and closed-end funds). As of November 7, 2011, candidate must answer at least 72% of the questions correctly in order to pass. Upon passing the test, one is granted a Series 7/General Securities license. The average score is 73% with 66% of test takers getting a passing grade.
WikiPedia also talks about how many aspiring Stockbrokers get their study materials from a third party…Like “Training Consultants?” I think those materials are being incinerated as I type. I tried to get a study guide on the FINRA site. They had an eLearning section, however, I couldn’t get in. I’m guessing you need to be signed on by a sponsor. I’ve got a call into them, and I’m waiting for a response. I did see some other ‘tools’ available that will make good fodder for blog posts and horse questions.
Q007) True or False? With a passing grade of 72% on the FINRA Series 7 you will receive the most comprehensive of several securities licenses that permit an agent to communicate with retail investors about commodities, futures, derivatives, stocks, bonds, options and mutual funds.
A007) False. A series 7 license does not give a representative authority to deal in commodities and futures. That is the Series 3 Exam. In addition to the Series 7, a ‘State Exam’ —Series 63, to satisfy state law registration requirements must also be taken…and passed with a 75%
Ivestopedia.com does a great job bottom-lining it for us:
Passing the Series 63 exam for registration within a state is a requirement for all registered representatives. Those who wish to be IARs must pass the Series 66 and the Series 7. The Series 66 is equivalent to taking both the Series 63 and Series 65. If an individual does not already have a Series 7 and wishes to be an IAR (Paid Investment Advisor) the Series 65 is NASAA‘s competency exam.
I’ll boil it down a little further even:
- If you want to get paid to be an Investment Advisor, but don’t want to take and pass the Series 7 Exam, you need to take the Series 65 Exam. But, need not take the Series 63 Exam.
- If you want to be a Stockbroker AND an IAR, then you need to take and pass the Series 7 exam AND the Series 66 Exam. But, need not take the Series 63 Exam.
- If you want to just be a Stockbroker, and not collect fees for giving investment advice, then you need to take the Series 7 Exam and the Series 63 Exam.
Here I found a great outline of the Series 7 Exam, offered in PDF format on the FINRA Web site:
Note: You will need to be sponsored by a member firm. The FINRA member firm that sponsors the applicant must file a Uniform Application for Securities Industry Registration or Transfer (Form U4) in the Central Registration Depository (CRD®) and request the Series 7 Examination on the Form U4.
Another interesting note: Not all the questions on the test count toward your grade. Why? Because creators of the exams throw about ten, secret ‘test’ questions in the mix, to collect data on them before they include them as questions that ‘count’ on future exams.
The next post talks about hedge funds and ‘too big to fail’ policy. It cuts down on the blah, blah, blah, and offers six really good horse questions.
- FINRA Series 7 Exam Free Study Guide (bangaricontentgallery.com)
- FINRA Series 7 Exam Horse (bangaricontentgallery.com)
- Free Series 7 Study Guide (bangaricontentgallery.com)
- Chris Morgen Earns the Financial Industry Regulatory Authority (FINRA) Series 65 Uniform Investment Advisor Law License (prweb.com)
- Exam Trauma (edinburghexchanges.wordpress.com)
- A Wall Streeter Was Arrested For Allegedly Breaking Into A Pharmacy Wearing A ‘Mr. T’ Mask (businessinsider.com)
- Exams in the headlines – but for the wrong reasons again! (pedleysmiths.wordpress.com)