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Hey there, and welcome to our informative read on Series 7 study guide.

This is the third article in our Series 7 study series.

Find study guides for each of the four functions of the investment company and variable contracts products representative tested in the Series 7 exam.

We’ve also discussed tips to help you make the most of the Series 7 study guide and why it’s important to use the guide.

Let’s get started right away.

The best way to prepare for any exam is to follow the guidelines set out for it.

FINRA does an excellent job in that regard and we’ve followed the Series 7 guideline that you will find here.

Module 1 | Finding business opportunities for broker-dealers from both potential customers and current customers

This module specifically deals with communication with the public as well as the investment products and services offered in an attempt to solicit business.

First, we look at the types of communication allowed, the standards expected by regulatory authorities, and advertising about various investment products.

Following that, the focus turns to investment products and services for potential customers and much more.

1.1 Contact with potential and current customers, marketing material development, approval, and distribution

1.2 Describing investment products to potential and current customers

Module 2 | Starting an account after obtaining and evaluating the financial profile and investment objectives of a customer

In this, we cover the functions that general securities representatives carry out specifically related to opening accounts.

Without these accounts opened with broker-dealers, an investor has no way of engaging in securities transactions.

2.1 Tells potential customers about the account types available and discloses their restrictions

2.2 Secures and updates information about customers along with relevant information and documents

2.3 Gather customer investment profile information

2.4 Get necessary supervisory approval to open accounts and make account changes

Module 3 | Giving clients investment information, making recommendations, transferring assets, and keeping suitable records

There’s a lot covered in this module regarding the information passed on to clients.

This includes making the right investment recommendations, for example.

This module also deals with the records kept regarding clients as well as how assets are transferred among so much more. 

3.1 Passing on all investment strategy information to customers

3.2 Analyze customer’s portfolio of investments as well as product options to determine suitability

3.3 Disclose to clients characteristics and risks of investment products

3.4 Communications with customers

Module 4 | Customer purchases and sales instructions and agreements obtained and verified; transactions processed, completed and confirmed

Our last module looks at three specific areas.

First, we discuss the types of orders and quotations a registered representative must know.

Secondly, we discuss the processing of various transactions.

Thirdly, we cover the resolution of customer complaints.

4.1 Providing current quotes for investors

4.2 Processing and confirming customers’ transactions as per regulations

4.3 Notifies the correct supervisor, helps with solving discrepancies, disputes, errors, and all complaints

4.4 Dealing with margin issues

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