Investment Jobs Securities Licensing Test 1 — Questions and Answers
Question 1: Which FINRA license is required to sell securities such as stocks and bonds to retail clients?
- Series 6
- Series 7 (Correct answer)
- Series 63
- Series 65
Correct answer: Series 7
The Series 7 (General Securities Representative) license authorizes holders to sell a broad range of securities including stocks and bonds.
Question 2: The Series 63 license is required by most US states and covers which area?
- Commodities trading
- State securities law (Blue Sky Laws) (Correct answer)
- Options trading
- Investment advisory services
Correct answer: State securities law (Blue Sky Laws)
The Series 63 (Uniform Securities Agent State Law Examination) tests knowledge of state securities regulations known as Blue Sky Laws.
Question 3: A registered investment adviser representative must hold which license to charge fees for investment advice?
- Series 7
- Series 6
- Series 65 (Correct answer)
- Series 3
Correct answer: Series 65
The Series 65 (Uniform Investment Adviser Law Examination) is required to act as an investment adviser representative and charge fees for advice.
Question 4: Which self-regulatory organization administers most US securities licensing exams?
- SEC
- CFTC
- FINRA (Correct answer)
- FDIC
Correct answer: FINRA
FINRA (Financial Industry Regulatory Authority) administers the majority of securities licensing exams in the United States.
Question 5: What is the minimum passing score for most FINRA licensing exams?
- 60%
- 70% (Correct answer)
- 72%
- 75%
Correct answer: 70%
Most FINRA licensing exams require a minimum score of 72%, though the exact threshold can vary by exam.
Question 6: How long is the cooling-off period before retaking a FINRA exam after a third failed attempt?
- 30 days
- 60 days
- 90 days
- 180 days (Correct answer)
Correct answer: 180 days
After a third failed attempt at a FINRA exam, candidates must wait 180 days before they can retake the exam.
Investment Jobs Securities Licensing Test 1
Which FINRA license is required to sell securities such as stocks and bonds to retail clients?