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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
| Topic 1: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Order types and execution procedures
- Trade settlement and confirmation rules
- Regulatory requirements for transaction processing
|
| Topic 2: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Product-specific disclosures and regulatory requirements
- Customer communication and solicitation rules
- Standards for advertising and public communications
|
| Topic 3: Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Account types and documentation requirements
- Financial profile, risk tolerance, and investment objectives
- Suitability rules and regulatory compliance
|
| Topic 4: Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Options and derivative products
- Direct participation programs
- Equity securities
- Investment companies, ETFs, and variable annuities
- Margin accounts and taxation
- Municipal securities
- Debt securities and government obligations
- Recordkeeping and regulatory reporting
|
FINRA General Securities Representative Examination (GS) Sample Questions:
Question 1
How often must Investment companies issue financial statements to shareholders?
A. quarterly
B. monthly
C. annually
D. semi-annually
Question 2
Which of the following preferred issues is likely to fluctuate most in value?
A. convertible preferred
B. broker preferred
C. cumulative preferred
D. callable preferred
Question 3
Creditors whose claims are not settled upon dissolution of a limited partnership may seek recourse from:
A. the partnership's income
B. the general partner's personal assets
C. the general partner's profits
D. the personal assets of the limited partners
Question 4
Bubba buys a bond issued at par with a 5% coupon that is convertible into common stock at $40. The
bond increases in value by 20 points. What is the conversion parity of the stock?
A. $50
B. $40
C. $48
D. $25
Question 5
Bubba Corporation has a registered public offering of 750,000 shares at $40. An underwriter of 30,000
shares is advised by the manager that its retention will be 70%. How many shares may the underwriter
sell to its own customers?
A. as many as it can up to a maximum of 51,000
B. 30,000
C. 9.000
D. 21,000
Solutions:
Question 1 Answer: D | Question 2 Answer: A | Question 3 Answer: B | Question 4 Answer: C | Question 5 Answer: D |