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Series7 PDF Practice Q&A's

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FINRA Series7 Exam Syllabus Topics:

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

FINRA General Securities Representative Examination (GS) Sample Questions:

Question 1

Bubba is buying a treasury bill. The discount he receives results in Bubba's determination of:

A. rate of return
B. yield to call
C. nominal yield
D. face value


Question 2

Municipal syndicate allocation procedures are described in which of the following?

A. underwriting agreement
B. official statement
C. syndicate account letter
D. agreement among the underwriters


Question 3

Which of the following statements is not true about exchange traded options?

A. they are adjusted for reverse splits
B. they are adjusted for cash dividends
C. they are adjusted for stock dividends
D. they are adjusted for stock splits


Question 4

Bubba buys one XYZ November 65 call at $3 and one XYZ November 65 put at $2. XYZ is trading at $72.
The put expires and the call is closed at its intrinsic value. What is the resulting profit?

A. $500
B. $300
C. $200
D. $700


Question 5

Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at
4 7.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the
preferred stock is:

A. selling at a 4% premium over conversion value
B. going to be called when the common stock price is $52
C. overpriced and will quickly decline
D. underpriced and should rise quickly


Solutions:

Question 1
Answer: A
Question 2
Answer: C
Question 3
Answer: B
Question 4
Answer: C
Question 5
Answer: D

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