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FINRA Series7 Practice Q&A's

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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives9%- Account types and documentation requirements
- Financial profile, risk tolerance, and investment objectives
- Suitability rules and regulatory compliance
Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Margin accounts and taxation
- Municipal securities
- Recordkeeping and regulatory reporting
- Direct participation programs
- Debt securities and government obligations
- Investment companies, ETFs, and variable annuities
- Options and derivative products
- Equity securities
Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions11%- Trade settlement and confirmation rules
- Regulatory requirements for transaction processing
- Order types and execution procedures
Seeks Business for the Broker-Dealer from Customers and Potential Customers7%- Product-specific disclosures and regulatory requirements
- Standards for advertising and public communications
- Customer communication and solicitation rules

FINRA General Securities Representative Examination (GS) Sample Questions:

Question #1

The Bubba Corporation is offering stock to the public for the first time. The registration statement lists
1 50,000 shares for sale at $400 per share. The company conducts business in a 100-mile radius that
includes towns in two neighboring states. Which of the following information is not required in the
preliminary prospectus for this offering?

  • A. a section describing how the funds from the sale will be used
  • B. a statement of the company's assets and liabilities
  • C. the price at which the issue is offered
  • D. a notice in red ink to the effect that the prospectus has not been approved by the SEC
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

Which of the following is not found in the final prospectus?

  • A. the public offering price
  • B. a statement as to possible stabilization by the manager
  • C. a statement that the SEC neither approves nor disapproves of the issue
  • D. a copy of the underwriting agreement
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Correct Answer: D  🗳️

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Question #3

What is the loan value on a call option held in a customer's margin account?

  • A. 30%
  • B. the compliment of the FRB initial margin requirement for listed stocks
  • C. 0
  • D. 50%
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #4

Book value of a corporation is also know as:

  • A. dilution value
  • B. net tangible asset value per share
  • C. intangible value
  • D. par value
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

Which of the following municipal bonds may be grouped under the classification of "revenue bonds"?

  • A. limited tax
  • B. special tax
  • C. general obligation
  • D. new housing authority
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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