FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| 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 |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Regulatory requirements for transaction processing - Order types and execution procedures - Trade settlement and confirmation rules |
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Customer communication and solicitation rules - Product-specific disclosures and regulatory requirements - Standards for advertising and public communications |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Options and derivative products - Margin accounts and taxation - Debt securities and government obligations - Investment companies, ETFs, and variable annuities - Direct participation programs - Municipal securities - Equity securities - Recordkeeping and regulatory reporting |
FINRA General Securities Representative Examination (GS) Sample Questions:
Question #1
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. a share in the profits from earnings
C. deductions for losses in excess of income earned
D. tax credits
Question #2
Which of the following is not prohibited of a general partner?
A. buying or selling assets of the partnership except to foster the business of the partnership
B. acting in such a way as to impede the orderly business of the partnership
C. competing in any way with the partnership
D. accepting compensation from any other partnership
Question #3
Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at
4 7.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the
preferred stock is:
A. overpriced and will quickly decline
B. underpriced and should rise quickly
C. going to be called when the common stock price is $52
D. selling at a 4% premium over conversion value
Question #4
In terms of depletion, percentage depletion is better than cost depletion because it:
A. is limited to production
B. is more widely available
C. permits recovery of more than the original cost
D. is not subject to recapture
Question #5
Bubba wishes to invest $50,000 in three mutual funds offered by different underwriters with growth as the
main objective. A recommendation to purchase only one such fund for $50,000 might be more suitable to
Bubba if:
A. the purchase of one fund would probably be made at a break point allowing more dollars to be invested
in fund shares
B. a withdrawal plan would be easier to employ using a single fund
C. the income from one fund will be greater than the combined income in three
D. the growth in one fund will be greater than the combined growth in three
Solutions:
| Question #1 Answer: B | Question #2 Answer: D | Question #3 Answer: B | Question #4 Answer: C | Question #5 Answer: A |
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