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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Suitability rules and regulatory compliance - Financial profile, risk tolerance, and investment objectives - Account types and documentation requirements |
| 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% | - Recordkeeping and regulatory reporting - Options and derivative products - Margin accounts and taxation - Debt securities and government obligations - Direct participation programs - Equity securities - Municipal securities - Investment companies, ETFs, and variable annuities |
| 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 |
FINRA General Securities Representative Examination (GS) Sample Questions:
Question 1
Bubba is age 54 and has investments in a retirement plan with his former employer valued at $104,500.
Bubba withdraws $25,000 to open a retail clothing store. Which of the following statements is true
regarding Bubba's tax consequences?
A. a penalty of 10% of the withdrawn amount is assessed
B. a penalty of 10% on all assets in Bubba's account is assessed
C. the entire account is terminated and $104,500 is immediately taxable
D. only regular income tax is due on the amount withdrawn
Question 2
Bubba buys one XYZ November 65 call at $3 and one XYZ November 65 put at $2. XYZ is trading at $72.
The put expires and the call is closed at its intrinsic value. What is the resulting profit?
A. $300
B. $500
C. $200
D. $700
Question 3
CMOs are sold and priced based upon which of the following:
A. stated maturity
B. current yield
C. expected average life
D. par value
Question 4
A management group may serve an investment company as its:
A. custodian
B. underwriter
C. investment advisor
D. both A and C
Question 5
Which of the following does not affect the public offering price of a new issue?
A. dividend projections for the next year
B. the book value of the issuer
C. the selling group's determination of value in the prevailing market conditions
D. anticipated earnings of the issuer in the next year
Solutions:
| Question 1 Answer: A | Question 2 Answer: C | Question 3 Answer: C | Question 4 Answer: D | Question 5 Answer: C |







