Quote from cashmoney69:
I always thought that series 7 was dealing more with tax information, equity laws, and executing orders for customers... if that's true, how does a series 7 help a retail trader?...
Series 7 became a requirement in around 1998 to make a distinction between "retail" and "professional" traders, so that the professionals could continue to keep the proper (exchange member) status, take advantage of capital usage, have orders not be routed to the retail brokers, not worry about "wash sale" or "matching trades" etc. Previous to that time, our members were treated like exchange members, since we owned memberships on the exchanges and allowed our people to trade our money.
So, with the "investigations" that took place back in those days, primarily of unregistered firms, the regulators decided to continue to allow professionals all the benefits they were used to...as long as they could make a distinction between our people and retail people.
They came up with the Series 7 licensing procedure. At first we were concerned about losing traders, but it actually worked the opposite way...we started getting much more serious, responsible, traders who were not worried about taking the test.
Anyway, ever "stockbroker" has passed the test, how hard can it really be, LOL (just a joke you guys, in the vein of the GEICO Caveman, no cards or letters, LOL).
All the best,
Don
