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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Customer recommendations and transactions
  • 1. Suitability and best interest obligations
  • 2. Portfolio and risk considerations
  • 3. Asset transfers and record maintenance
- Investment products
  • 1. Government securities
  • 2. Investment companies and variable products
  • 3. Direct participation programs
  • 4. Municipal securities
  • 5. Debt securities
  • 6. Equity securities
  • 7. Options
Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Communications with the public
  • 2. Business development activities
Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions7%- Trade execution and settlement
  • 1. Settlement and confirmations
  • 2. Order handling
  • 3. Books and records requirements
  • 4. Trade processing
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Suitability and customer profile
  • 2. Account types and registrations
  • 3. Customer identification requirements

FINRA General Securities Representative Examination (GS) Sample Questions:

1. Which of the following stock exchanges is not registered with the SEC?

A) Boston Stock Exchange
B) all are registered
C) Chicago Stock Exchange
D) Pacific Stock Exchange


2. In a competitive bidding for mortgage bonds of a large public utility the winning underwriter is determined
by:

A) the highest dollar amount paid to the issuer
B) the shortest maturity date for the bonds
C) the refunding and sinking fund terms in the indenture
D) the lowest net interest cost to the issuer


3. A dealer buys 100 shares of XYZ common, which is an actively traded stock, at 23.50. Three days later,
when XYZ common is quoted at 19.50 - 19.75, he sells the 100 shares to a customer. The basis for the
dealer's markup is:

A) 5% above cost
B) 23 1/2
C) 10 5/8
D) 19 7/8


4. Assuming that the information contained in a registration statement is complete and accurate, the
registration statement becomes effective:

A) only after the SEC specifically clears the issue in writing to the principal underwriter
B) 10 days after receipt by the SEC
C) 20 days after receipt by the SEC
D) 30 days after receipt by the SEC


5. Bubba buys municipal bonds with a $100,000 principal amount at 89 on margin. His account has no cash
or securities. What is his minimum required deposit?

A) $5,080
B) $50,000
C) $22,500
D) $13,350


Solutions:

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

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