Series 7 is administered by FINRA, the Financial Industry Regulatory Authority. The Series 7 exam is a general securities registration test. Those who pass the series 7 may sell securities products, other than futures and commodities contracts. The Series 7 exam tests understanding of investments, such as stocks, bonds, options, risk, taxes, retirement accounts, and client/account management. An individual wishing to take the Series 7 exam must have sponsorship from a FINRA-member firm or a self-regulatory organization (SRO), such as an exchange.
An MBA graduate receives a job offer to enter a broker-dealer's financial advisor training program. He studies for the Series 7 for almost two months. His firm pays for the self-paced training. He must be sponsored by a firm, such as his employer, to take the Series 7 exam. Passing the Series 7 exam allows him to solicit customers and to receive commissions.