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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
| Topic 1: Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Equity securities
- Municipal securities
- Margin accounts and taxation
- Investment companies, ETFs, and variable annuities
- Debt securities and government obligations
- Options and derivative products
- Direct participation programs
- Recordkeeping and regulatory reporting
|
| 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% | - Financial profile, risk tolerance, and investment objectives
- Suitability rules and regulatory compliance
- Account types and documentation requirements
|
| Topic 4: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Regulatory requirements for transaction processing
- Trade settlement and confirmation rules
- Order types and execution procedures
|
FINRA General Securities Representative Examination (GS) Sample Questions:
1. Which of the following does not decrease basis?
A) income from extraordinary sources
B) losses
C) cash or property paid out
D) depletion of real property
2. Bubba buys one XYZ October 80 put and sells one XYZ October 70 put. What is his position called?
A) money spread
B) combination
C) calendar spread
D) straddle
3. 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
4. Bubba's margin account has $1,000 of SMA. If he buys $20,000 of listed securities, how much fully paid
margin stock must he deposit to respond to a Reg T requirement of 50%?
A) $18,000
B) $20,000
C) 10,000
D) $9,000
5. Which of the following statements regarding mutual funds is true?
A) the sponsor receives a management fee based on the fund's totalassets
B) the management company receives a portion of the sales load for managing the fund assets
C) the terms "management company" and "investment advisor" are interchangeable
D) the custodian can also be the transfer agent
Solutions:
Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: D |