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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
| Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
| Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
| Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Investment products
|
FINRA General Securities Representative Examination (GS) Sample Questions:
Question 1
Bubba owns a subordinated debenture in a company that is liquidating. When will he get paid?
A. after the shareholders of preferred stock
B. before the holders of secured debt
C. after the company pays its outstanding bills, but before paying bank loans
D. after the bills are paid and the bank is paid, but before the preferred shareholders
Question 2
Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of
the tax?
A. special tax bond
B. tax anticipation bill
C. term bond
D. pre-issue bond
Question 3
Bubba owns 200 shares of XYZ at $90, and wishes to hedge the position while generating income. What
is the best recommendation?
A. buy puts
B. sell puts
C. sell calls
D. buy calls
Question 4
Which of the following sources provides news of prospective municipal securities sales to underwriters?
A. the daily Bond Buyer
B. the Blue List
C. The Wall Street Journal
D. the SEC News Digest
Question 5
With respect to the public offering of securities by an underwriting syndicate, which of the following is
true?
A. the reallowance is greater than the underwriting spread
B. the underwriting spread is greater than the selling concession
C. the selling concession is greater than the underwriting spread
D. the reallowance is greater than the selling concession
Solutions:
| Question 1 Answer: D | Question 2 Answer: B | Question 3 Answer: C | Question 4 Answer: A | Question 5 Answer: B |


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