purpose of series 7

Discussion in 'Professional Trading' started by marketsurfer, Dec 16, 2003.

  1. 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 :)
  2. I think one reason was to provide a type of barrier to entry, after the Mark Barton incident.

  3. yes, that is possible. a creation of the prop firms instead of the SEC. very interesting.


  4. 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.
  5. Ebo


    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.


  6. a hedge fund manager does not need a series 7. this is not segregated accounts.

  7. 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.


  8. 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 !


    surfer:p :p