What is a Series 7 License?

What is a Series 7 License?


Welcome to the Investors Trading Academy talking
glossary of financial terms and events. Our word of the day is “Series 7 License”
The Series 7 license is known as the general securities representative (GS) license. It
authorizes licensees to sell virtually any type of individual security. This includes
common and preferred stocks; call and put options; bonds and other individual fixed
income investments; as well as all forms of packaged products (except for those that also
require a life insurance license to sell). The only major types of securities or investments
that Series 7 licensees are not authorized to sell are commodities futures, real estate
and life insurance. The Series 7 exam is by far the longest and
most difficult of all the securities exams. It lasts for six hours and covers all aspects
of stock and bond quotes and trading; put and call options; spreads and straddles; ethics;
margin and other account holder requirements; and other pertinent regulations.
Those who carry this license are officially listed as “registered representatives” by
FINRA, but they are generally referred to as stockbrokers. Many insurance agents and
other types of financial planners and advisors also carry the Series 7 license to facilitate
certain types of transactions inherent in their businesses. Principals of general representatives
must also obtain the Series 24 license.

One thought on “What is a Series 7 License?

  1. is there anything for beginners?

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