Series 7 Syllabus — Blueprint & Learning Objectives

FINRA Series 7 syllabus mapped to the official job functions with clear learning objectives and quick links to targeted practice.

This syllabus is based on FINRA’s official Series 7 Content Outline (4 major job functions). Use it as a checklist: cover every objective, then drill questions until you can pick the safest compliant answer fast.

What’s covered

F1 — Seeks Business for the Broker-Dealer from Customers and Potential Customers (7%)

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Public Communications & Advertising

  • Differentiate retail communications, institutional communications and correspondence, and identify high-level approval and review expectations.
  • Apply FINRA Rule 2210 principles to recognize communications that are false, misleading, promissory or lack a fair and balanced presentation of risks and benefits.
  • Identify when a seminar, lecture or group forum requires heightened supervision, disclosures and recordkeeping.
  • Recognize product-specific disclosure themes for investment company products and variable contracts (e.g., fees, expenses, risks and limitations).
  • Explain why options-related communications must be consistent with the Options Disclosure Document (ODD) and firm-approved materials.
  • Identify key communication requirements for municipal securities (e.g., fair presentation, conflicts, and required disclosures when applicable).
  • Describe what a research report is at a high level and identify common communication constraints such as quiet periods and distribution restrictions.
  • Recognize special communication requirements for CMOs and other mortgage-related products, including the need to emphasize cash-flow and prepayment risk.
  • Differentiate government securities communications from other products at a high level and identify typical disclosures around price/yield and market risk.
  • Identify the types of approvals and controls firms use before distributing marketing materials (e.g., principal review, record retention, supervision).

Describing Products, Services and Offerings

  • Describe the high-level steps and participants in a securities offering (issuer, underwriter, selling group, market makers).
  • Differentiate firm-commitment and best-efforts underwriting and identify how each affects distribution risk and proceeds certainty.
  • Identify what makes a new issue allocation sensitive (e.g., conflicts, spinning, restricted persons) and why firms use controls in new issue distribution.
  • Apply high-level new issue restrictions (e.g., associated persons and certain accounts) to determine whether a customer is eligible to purchase IPO shares.
  • Recognize common conflicts of interest in public offerings and identify required disclosures/controls in conflict scenarios.
  • Differentiate registered public offerings, exempt offerings and private placements at a high level and identify why offering exemptions exist.
  • Explain the purpose of prospectus delivery requirements in registered offerings and what a prospectus is intended to do for investors.
  • Identify the purpose of Regulation D private offerings and the basic concept of accredited investors and investor sophistication.
  • Recognize how Regulation S relates to offers/sales outside the United States and why U.S. resale restrictions may still apply.
  • Identify high-level practices that can be manipulative in connection with offerings (e.g., conditioning the market) and why rules restrict them.

F2 — Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives (9%)

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Account Types, Registrations & Disclosures

  • Differentiate common account types (cash, margin, options, advisory/fee-based, DVP/RVP) and identify key restrictions associated with each.
  • Describe what qualifies as pattern day trading at a high level and identify required disclosures and approvals for day-trading accounts.
  • Differentiate common registration types (individual, joint, trust, partnership, sole proprietorship, community property, unincorporated association) and explain why registration affects authority and ownership.
  • Identify core account-opening information requirements (customer identity, account title, risk profile, and required documents).
  • Explain why firms require written authorization for third-party mailings and disbursements and how this supports customer protection.
  • Describe the purpose of tax-advantaged accounts (e.g., IRAs, 529 plans) and identify high-level eligibility, contribution and distribution constraints.
  • Differentiate transfers and rollovers between retirement plans and describe common tax consequences of improper handling.
  • Recognize employer-sponsored plan types (e.g., 401(k), 457, defined benefit, profit-sharing) and how ERISA concepts can affect plan operations at a high level.
  • Identify common wealth events (e.g., inheritance) that can trigger account changes, documentation updates and revised investment objectives.
  • Describe common scenarios that require account registration changes or internal transfers and the controls used to document and approve changes.

CIP/KYC, Privacy & Account Authorizations

  • Explain the purpose of Customer Identification Program (CIP) requirements and what information firms typically collect to verify identity.
  • Apply know-your-customer (KYC) concepts to identify when additional information is required (e.g., foreign residency, citizenship, entity ownership).
  • Identify common screening considerations (e.g., corporate insiders, employees of broker-dealers/SROs) and why they matter for compliance and trading restrictions.
  • Describe the purpose of Regulation S-P privacy notices, opt-out rights and safeguard expectations for nonpublic personal information.
  • Recognize permitted and prohibited sharing of customer information and common exceptions (e.g., servicing, legal/regulatory).
  • Identify required account authorizations and documents for various relationships (e.g., POA, trust agreements, corporate resolutions, trading authority).
  • Differentiate discretionary authority from trading authorization and identify documentation and supervisory requirements for discretionary accounts.
  • Recognize suspicious activity indicators discovered during onboarding and identify the internal escalation path rather than attempting to resolve issues independently.

Customer Investment Profile & Suitability/Reg BI

  • Gather and document essential customer facts (financial situation, needs, objectives, risk tolerance, time horizon and experience) for an investment profile.
  • Differentiate preservation of capital, income, growth and speculation objectives and map them to typical product characteristics and risk levels.
  • Explain the difference between reasonable-basis suitability, customer-specific suitability and quantitative suitability at a high level.
  • Identify what makes a recommendation a recommendation and why that distinction matters for suitability and best interest obligations.
  • Describe Regulation Best Interest (Reg BI) at a high level and identify the goal of mitigating conflicts and acting in the customer’s best interest for recommendations.
  • Explain why firms may need to verify investor accreditation/sophistication for certain offerings and how that supports exemption eligibility.
  • Recognize “hold” recommendations and identify why ongoing monitoring expectations depend on account type, agreement and firm policy.

Supervision, Approvals & Safeguarding Assets

  • Identify supervisory approvals commonly required to open and maintain accounts, including for higher-risk products and strategies.
  • Explain why firms control the physical receipt, delivery and safeguarding of cash, checks and securities, and how those controls reduce fraud and loss.
  • Recognize circumstances where a firm may refuse, restrict or close an account (e.g., incomplete information, suspicious activity, regulatory concerns).
  • Describe the purpose of supervisory control systems and how firms test, document and improve supervisory procedures.

F3 — Provides Customers with Information, Makes Recommendations, Transfers Assets and Maintains Appropriate Records (73%)

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Portfolio Concepts, Research & Fundamental Analysis

  • Apply customer-specific factors (risk tolerance, time horizon, liquidity needs and objectives) to narrow appropriate product choices.
  • Explain diversification and asset allocation concepts and identify how concentration can increase portfolio risk.
  • Describe the difference between systematic and non-systematic risk and explain how diversification affects each.
  • Explain basic portfolio risk/return measures (e.g., volatility) and why they matter for suitability.
  • Define alpha and beta at a high level and describe how they are used in evaluating performance and market sensitivity.
  • Interpret basic components of annual reports and identify why footnotes and risk disclosures can materially change conclusions.
  • Differentiate balance sheet, income statement and cash flow statement purpose and the types of decisions each supports.
  • Compare FIFO and LIFO inventory valuation methods at a high level and explain how they can affect reported earnings and taxes.
  • Calculate and interpret basic liquidity measures (working capital, current ratio, quick ratio) in simple scenarios.
  • Calculate and interpret leverage measures (debt-to-equity) and identify why leverage can increase risk of distress.
  • Identify profitability concepts (margin, net profit) and how profit measures connect to valuation and sustainability.
  • Explain key equity valuation concepts (EPS, fully diluted EPS, P/E ratio, dividend payout ratio) and how changes affect investor expectations.

Equities, Rights, Warrants & ADRs (Including Tax Basics)

  • Differentiate authorized, issued, outstanding and treasury stock and explain why share counts matter for ownership and EPS.
  • Identify common stockholder rights (voting, dividends, inspection, residual claim) and how those rights differ from creditor claims.
  • Differentiate statutory voting and cumulative voting and explain how cumulative voting can affect minority shareholder influence.
  • Explain what a stock spin-off is and how it can affect shareholder holdings, cost basis and taxation.
  • Recognize what makes a penny stock transaction high risk and identify why special disclosures and rules apply.
  • Differentiate preferred stock types (cumulative, participating, convertible, callable, adjustable/variable-rate) and the investor objectives each may suit.
  • Explain subscription rights and warrants, including exercise terms, dilution considerations and value drivers.
  • Differentiate ADRs from domestic shares and identify currency risk and country/settlement considerations.
  • Compute cost basis adjustments for stock splits, stock dividends and stock rights in basic scenarios.
  • Differentiate qualified and non-qualified dividends and identify holding-period considerations at a high level.
  • Explain wash sale rules at a high level and apply them to identify when a loss may be disallowed for tax purposes.
  • Apply FIFO, LIFO and specific identification approaches to determine cost basis and realized gain/loss in simple equity sale scenarios.
  • Describe how equities trade across venues (exchange, OTC, ECNs, ATS/dark pools) and why venue differences can affect execution quality.

Mutual Funds, ETFs, UITs & Sales Practices

  • Differentiate open-end funds, closed-end funds, ETFs and UITs by structure, pricing and how investors buy/sell.
  • Explain NAV, public offering price (POP) and forward pricing for mutual funds and apply them to basic pricing scenarios.
  • Differentiate common mutual fund objectives (growth, value, income, balanced, sector, lifecycle) and relate each to typical holdings and risks.
  • Identify mutual fund share class cost drivers (front-end loads, back-end loads/CDSC, level loads/12b-1 fees) and explain how they affect investor outcomes.
  • Apply breakpoint concepts, letters of intent (LOI) and rights of accumulation (ROA) to determine when reduced sales charges may apply.
  • Explain dollar-cost averaging (DCA) and identify when it can reduce timing risk but does not eliminate market risk.
  • Differentiate redemption, exchange and conversion privileges and identify common restrictions and timing considerations.
  • Describe how mutual fund distributions work (dividends vs capital gains distributions) and why reinvestment changes cost basis.
  • Differentiate ETFs from mutual funds in trading (intraday vs once-per-day pricing) and identify how tracking error and fees impact ETF performance.
  • Explain the basic differences between closed-end fund pricing at premium/discount and open-end fund pricing at NAV.

Variable Annuities and Variable Life (Features, Valuation, Tax)

  • Describe core insurance features of variable contracts (death benefits, living benefits, riders, minimum guarantees) and their tradeoffs.
  • Explain separate accounts at a high level and how investment performance flows through to contract value.
  • Differentiate accumulation units from annuity units and explain how each is used in valuing a variable annuity over time.
  • Identify common variable annuity fees (M&E, admin, underlying fund fees, surrender charges) and explain how they affect returns.
  • Differentiate immediate vs deferred annuities and describe what annuitization means for liquidity and taxation.
  • Explain assumed interest rate (AIR) at a high level and how AIR interacts with actual investment performance to determine variable payouts.
  • Describe the tax treatment of variable annuities during accumulation and annuity payout and identify taxation triggers at surrender.
  • Explain the purpose of a 1035 exchange and identify common suitability and disclosure concerns when exchanging annuity contracts.

REITs, DPPs and Alternative Programs

  • Differentiate listed, non-listed registered and private REITs and identify liquidity and pricing implications of each structure.
  • Differentiate equity REITs, mortgage REITs and hybrid REITs and explain how each generates cash flow and risk exposure.
  • Describe how REIT distributions are typically taxed at a high level (dividends, capital gains, return of capital) and why tax character matters.
  • Describe core DPP structures (limited partnership, LLC) and the roles and duties of general partners vs limited partners.
  • Explain tax flow-through concepts for DPPs and identify how depreciation and other deductions can affect taxable income.
  • Differentiate public DPP offerings from private placements at a high level and identify common liquidity and disclosure differences.
  • Evaluate DPP suitability using high-level factors (program objectives, sponsor experience, leverage, startup costs, liquidity, cash flow assumptions).
  • Recognize common DPP types (real estate, oil and gas, equipment leasing, BDCs) and match each to typical risks and tax considerations.

Options (Contracts, Strategies, P/L, Tax)

  • Differentiate listed options contract specifications (exercise style, expiration, strike price, multiplier) and explain how each affects risk.
  • Explain the role of the Options Clearing Corporation (OCC) and how exercise and assignment are processed.
  • Differentiate American-style and European-style options and identify how exercise timing changes assignment risk for writers.
  • Define premium, intrinsic value and time value and calculate each for basic in-the-money, at-the-money and out-of-the-money options.
  • Compute breakeven points and maximum gain/loss for basic long call, long put, short call and short put positions.
  • Differentiate covered calls, protective puts and collars and match each strategy to an investor objective (income vs hedging).
  • Differentiate debit spreads and credit spreads and identify how width, net premium and strike selection define max gain/loss.
  • Differentiate straddles and combinations (strangles) and identify when volatility expectations drive strategy selection.
  • Identify the risks of uncovered (naked) option writing and explain why firms use suitability, approval and margin controls.
  • Explain how dividends, splits and other corporate actions can lead to option contract adjustments and why these adjustments exist.
  • Define open interest and trading volume and explain how each can signal liquidity and position crowding.
  • Identify the purpose of position limits and exercise limits and how they mitigate market manipulation and concentration risk.
  • Differentiate equity options from index options (physical vs cash settlement) at a high level and identify how settlement affects exercise outcomes.
  • Describe tax treatment of options at a high level, including special handling for certain index options and wash sale interactions.

Debt Securities (Corporate, Municipal, Treasuries, Agencies, ABS)

  • Differentiate corporate, municipal, Treasury and agency debt by issuer, credit risk profile and typical tax treatment.
  • Explain how coupon, maturity and yield measures (nominal/coupon, current, YTM, YTC, yield to worst, discount yield) relate to price.
  • Interpret ratings at a high level and describe how downgrades can affect market value, liquidity and required yield.
  • Identify the tax implications of original issue discount (OID), market discount and bond premium at a high level.
  • Differentiate common corporate bond structures (debentures, secured/mortgage bonds, zero-coupon, step-up, income bonds, convertibles) and identify key risks.
  • Explain convertible bond parity concepts at a high level and identify how conversion value can affect price sensitivity.
  • Differentiate callable and puttable bonds and identify reinvestment/call risk and extension risk implications.
  • Differentiate GO and revenue municipal bonds and identify typical sources of security and key credit factors.
  • Identify common municipal short-term notes (TANs, RANs, BANs, TRANs) and why issuers use them for cash-flow management.
  • Describe special municipal structures (pre-refunded, insured, AMT, taxable munis, COPs, lease revenue, variable-rate, auction-rate) and identify suitability implications.
  • Explain municipal call features (optional, mandatory, sinking fund, extraordinary, make-whole) and how they affect price and yield.
  • Describe basic refunding methods (current vs advance refunding, escrowed-to-maturity) and how refunding changes credit and call exposure.
  • Calculate accrued interest for bonds using 30/360 conventions in simple scenarios and explain why settlement includes accrued interest.
  • Compute taxable equivalent yield (TEY) at a high level and identify when TEY comparisons can change the preferred choice between taxable and tax-exempt bonds.
  • Explain asset-backed securities (CMOs/CDOs) at a high level and identify how tranche structure and prepayment risk change cash flows.
  • Differentiate Treasury bills, notes, bonds, STRIPS and TIPS and identify key features (maturity, interest payments, inflation adjustment).
  • Identify agency issuers (GNMA, FNMA, FHLMC) and explain pass-through mechanics and prepayment risk at a high level.
  • Differentiate ETNs from ETFs and identify issuer credit risk and tax/structure considerations of ETNs.

Disclosures, Fees, Risks & Market/Technical Analysis

  • Identify transaction-level disclosures that may be required (material aspects, conflicts, control relationships) and explain why disclosure protects investors.
  • Differentiate major risk types (call, reinvestment, interest-rate, credit, liquidity, systematic and non-systematic) and match them to products.
  • Differentiate types of investment returns (tax-exempt interest, taxable interest, dividends, capital gains, return of capital) and explain why return composition matters.
  • Explain markups, markdowns and commissions at a high level and identify how costs differ for principal vs agency transactions.
  • Differentiate mutual fund share classes and identify the disclosure goal of helping customers understand long-run cost differences.
  • Identify key fees unique to variable products (surrender charges, M&E charges) and explain why they must be disclosed clearly.
  • Describe soft dollar arrangements at a high level and identify why conflicts and disclosure expectations exist.
  • Identify basic gift and estate tax concepts (annual gift exclusion, lifetime exemption) and apply them to common gifting/inheritance scenarios at a high level.
  • Interpret simple market sentiment and momentum indicators (volume, short interest, index futures, put/call ratio) and identify limits of these signals.
  • Identify Bond Buyer municipal indexes at a high level and explain how benchmarks can be used to interpret municipal yield movements.
  • Recognize basic technical analysis concepts (support/resistance, trend lines, breakouts) and apply them to identify common chart patterns in simple examples.
  • Explain why municipal material event disclosures can affect secondary-market pricing and why retail communications must remain current and fair.

Account Maintenance, Transfers, Confirmations & Records

  • Identify required elements and timing of customer confirmations and account statements and explain why accuracy and timely delivery matters.
  • Differentiate realized vs unrealized gains/losses and explain how each impacts statements and suitability discussions.
  • Describe how withdrawals, tender offers and other account requests are processed and documented at a high level.
  • Identify when account records must be updated (address changes, objective changes, trusted contact details when used) and how updates support suitability and supervision.
  • Explain ACATS transfers at a high level and identify typical steps and firm obligations during account transfers.
  • Describe record retention expectations at a high level and why records must be retrievable, tamper-resistant and complete.
  • Identify key steps and controls used in account closure procedures to protect customers and reduce operational risk.
  • Explain why educational communications may be required for account transfer and recruitment-related messaging.

F4 — Obtains and Verifies Purchase/Sale Instructions; Processes, Completes and Confirms Transactions (11%)

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Quotes, Orders, Short Sales & Best Execution

  • Differentiate quote types (firm vs subject/qualified) and identify how quote status affects execution expectations.
  • Differentiate common order types and modifiers (AON, FOK, IOC, not-held, MOC) and select an appropriate order given a scenario.
  • Explain how bid/ask quotations relate to customer pricing and what “at advertised yield” implies for fixed income transactions.
  • Describe the purpose of best execution obligations and identify key factors used to evaluate execution quality.
  • Differentiate agency vs principal execution at a high level and describe how that affects disclosures and transaction costs.
  • Explain short sale order marking and the purpose of locate/borrow processes under Regulation SHO.
  • Differentiate speculative, hedging and arbitrage motivations for short sales and identify how strategy affects risk.
  • Describe securities lending at a high level and identify “hard to borrow” and “fail to deliver” concepts and why they matter operationally.
  • Recognize when trading halts and volatility controls can restrict quoting and trading and how firms should respond operationally.

Order Tickets, Trade Reporting, Settlement & Delivery

  • Identify required order ticket elements (account, security, price, capacity, time, special instructions) and explain why complete tickets support supervision and audit trails.
  • Describe the role of market makers and designated market makers (DMMs) at a high level, including quoting and liquidity responsibilities.
  • Identify common trade reporting systems (e.g., TRACE, EMMA/RTRS, TRF) and the purpose of timely and accurate transaction reporting.
  • Explain the concept of good delivery for securities and identify common good-delivery problem scenarios (endorsements, registration, denominations, due bills).
  • Differentiate physical certificates from book-entry settlement and identify how DRS affects ownership records.
  • Describe settlement cycle concepts under SEC Rule 15c6-1 and identify why “regular way” vs negotiated settlement matters.
  • Differentiate when-issued, as-issued and if-issued trading and identify settlement and cancellation risks unique to conditional trading.
  • Explain ex-dividend and ex-rights processing at a high level and how due bills can be used to allocate distributions correctly.
  • Describe how options exercise/assignment affects settlement and delivery and why firms must process assignments accurately.
  • Identify DK (don’t know) discrepancies and describe high-level steps to resolve trade comparisons and settlement differences.

Errors, Complaints & Dispute Resolution

  • Identify common trade errors (cancels, rebills, erroneous reports) and describe why prompt correction reduces customer harm and regulatory risk.
  • Describe firm requirements for capturing and escalating written customer complaints and the consequences of improper handling.
  • Differentiate arbitration, mediation and litigation at a high level and identify what types of disputes commonly go through each forum.
  • Identify when a reportable event or complaint may trigger internal reporting and updates to registration records (e.g., Form U4).
  • Recognize clearly erroneous transaction scenarios and the need to follow exchange/firm procedures for review and resolution.

Margin (Reg T, Maintenance, SMA, Portfolio Margin)

  • Differentiate margin account eligibility factors (minimums, eligible/ineligible securities, approvals) and identify required margin disclosures.
  • Explain initial margin requirements under Regulation T at a high level and calculate basic initial margin for long and short positions.
  • Differentiate debit balance, credit balance, loan value and buying power and apply them to basic margin scenarios.
  • Explain maintenance margin concepts and identify what can trigger a maintenance call (market declines, withdrawals, increased concentration).
  • Describe how meeting a margin call can be satisfied (deposit cash/securities) and when liquidation may occur if unmet.
  • Explain Special Memorandum Account (SMA) purpose at a high level and identify what increases SMA and common prohibited uses.
  • Differentiate margin impacts of purchases vs short sales and describe how short positions change equity calculations and risk.
  • Identify margin considerations for specific products (e.g., mutual funds, Treasury securities) and why house requirements may exceed minimum rules.
  • Differentiate day-trading margin and portfolio margin concepts at a high level and identify why risk-based margining changes requirements.

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