purpose of series 7

M

marketsurfer

can someone enlighten me, please. what is the purpose of a series 7 for a prop trader ? are prop shops trading public funds ? it is my understanding that if one is trading private capital, a series 7 is not needed per the SEC. anyone ??


thanks !

surfer :)
 
Quote from marketsurfer:

can someone enlighten me, please. what is the purpose of a series 7 for a prop trader ? are prop shops trading public funds ? it is my understanding that if one is trading private capital, a series 7 is not needed per the SEC. anyone ??


thanks !

surfer :)
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I think one reason was to provide a type of barrier to entry, after the Mark Barton incident.
 
Quote from TheCaracal:



I think one reason was to provide a type of barrier to entry, after the Mark Barton incident.
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yes, that is possible. a creation of the prop firms instead of the SEC. very interesting.

best,

surfer
 
It allows you to trade the firms money as opposed to a private, segregated account. This gives you professional leverage and is one way around the PDT rule.
 
I personally think the series 7 is a waste of time. It certainly is not a barometer of becoming a successful trader.
When you trade in an LLC you are "technically" trading all of the partner's money including your own! I guess it does weed out some of the morons. I suppose it also bonds you since the SEC does a background check and fingerprints you as well.

Wanna know a real waste of time, take the Continuing Education Series!I check every answer and have finished in a record 1 1/4 hours. That beat my prior hour and 1/2.

ebo
 
Quote from phoenix_rising:

It allows you to trade the firms money as opposed to a private, segregated account. This gives you professional leverage and is one way around the PDT rule.
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a hedge fund manager does not need a series 7. this is not segregated accounts.

surfer
 
Lets hope he is a CFA or a CFP.
These are actually harder than a 7 and require some education!
It does not mean he can pick stocks but can at least read a balance sheet.

ebo
 
Quote from Ebo:

Lets hope he is a CFA or a CFP.
These are actually harder than a 7 and require some education!
It does not mean he can pick stocks but can at least read a balance sheet.

ebo
More...




sure, ebo. i'll take a pHd in math anytime over a CFA or CFP to run my fund. CFA and CFP's are bogus in my opinion. well, maybe not if you are an old lady looking into ira's.

LOL !

best,

surfer:p :p
 
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