Stock Market Investment Training Information

All stockbrokers and traders must be licensed to buy or sell stocks in the United States. They must study and then pass securities market tests before working at a Financial Industry Regulatory Authority, or FINRA-supervised firm. After licensing, registered persons may buy, sell and transact on the New York Stock Exchange.

Considerations

• Most persons seeking employment at a member firm must have a bachelor's degree from a recognized college or university. While this is not a requirement at many firms, brisk competition for broker or trader positions exists. According to the U.S. Department of Labor's Occupational Outlook Handbook for 2010, a business, economics or mathematics degree helps. Graduate degrees, such as the MBA, or certifications, such as the CPA, assist job seekers in landing a job in the securities industry.

Function

• Many large sell-side firms, or those selling financial products and securities, sponsor training programs. The new employee studies and takes practice tests to prepare for the licensing examinations. Some firms test potential hires to determine their likelihood of passing these challenging tests prior to offering employment.

  Individuals must work for and receive sponsorship of a FINRA-supervised broker dealer or trader dealer to sit for the Series 7 and other licensing exams. Employees must work at least four months prior to taking the examination. Firms may or may not provide their employees with more than one attempt to pass the licensing tests.

  According to "Pass the 7" (2007), studying and passing the Series 7 requires focus and dedication. The pass rate for the Series 7 is between 65 to 70 percent.

Types

• Firms may offer self-study programs, such as those offered by the Securities Training Corporation, in addition to firm-created study aids. STC offers classroom, self-study, and virtual training. Progress exams allow students to assess their progress. Many firms also offer internal study programs.

  Passing the General Securities Registered Representative Exam--the Series 7--requires a score of at least 70 percent. According to "Changing Faces: America's Wealth Advisors" (2007), newly registered persons must then pass the Uniform Securities Agent State Law Examination, Series 63. Series 63 requires a 72 percent score or better.

  According to "Career Opportunities in Banking, Finance, and Insurance" (2007), Series 66, a combination of Series 63 and 65, is preferred by many registered persons. Passing Series 66 requires a 75 percent or better score.

Benefits

• Offering financial advice requires passing Series 65, the Uniform Investment Advisor Law Exam. Passing this examination may prompt some professionals to pursue Certified Financial Planner CFP(R) training, according to "Getting Started as a Financial Planner" (2009).

Potential

• Some career paths in the securities business require passing more examinations. Series 3, the National Commodity Futures Examination; Series 6, the Investment Company Products/Variable Contracts Representative Examination; Series 9, the General Securities Sales Qualification Examination (Options); Series 10, the General Securities Sales Qualification Examination (General Securities); and Series 24, the General Securities Principal Examination are required for some securities roles.