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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% | - Standards for advertising and public communications - Customer communication and solicitation rules - Product-specific disclosures and regulatory requirements |
| 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% | - Equity securities - Investment companies, ETFs, and variable annuities - Margin accounts and taxation - Recordkeeping and regulatory reporting - Direct participation programs - Options and derivative products - Debt securities and government obligations - Municipal securities |
FINRA General Securities Representative Examination (GS) Sample Questions:
1. Upon opening a new account for a customer, a registered representative should:
A) investigate the customer's credit rating
B) determine what is suitable for the customer based upon his financial background
C) inquire about age
D) all of the above
2. Which of the following is available both to owners of stock and owners of limited partnership
participations?
A) deduction of business expenses from income
B) tax credits
C) deductions for losses in excess of income earned
D) a share in the profits from earnings
3. Which of the following pays interest at maturity only?
A) Income bonds
B) US treasury bills
C) Series H savings bonds
D) a corporate serial bond
4. Which of the following is true about option prices?
A) premiums on options of well-known companies are usually larger than on lesser-known companies
B) premiums on options of higher-priced stocks are usually greater than on lower-priced stocks
C) premiums on options for listed stocks are usually greater than on unlisted stocks
D) premiums on options of volatile stocks are usually larger than on less volatile stocks
5. Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the
prices listed
1 00 ABC $30
2 00 XYZ $70
2 00 QBB $40
2 00 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much
additional money must be deposited?
A) $6,000
B) $4,500
C) $7,000
D) $1,500
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: B |







