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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 |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Trade settlement and confirmation rules - Regulatory requirements for transaction processing - Order types and execution procedures |
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Standards for advertising and public communications - Product-specific disclosures and regulatory requirements - Customer communication and solicitation rules |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Recordkeeping and regulatory reporting - Investment companies, ETFs, and variable annuities - Equity securities - Margin accounts and taxation - Options and derivative products - Municipal securities - Debt securities and government obligations - Direct participation programs |
FINRA General Securities Representative Examination (GS) Sample Questions:
1. Which of the following have a stated interest rate on the face of the certificates?
A) treasury bonds
B) treasury notes
C) both B and C
D) treasury bills
2. In terms of depletion, percentage depletion is better than cost depletion because it:
A) is more widely available
B) permits recovery of more than the original cost
C) is not subject to recapture
D) is limited to production
3. An excerpt from a recent tombstone ad reveals bonds offered publicly at 101. Why were they priced at a
premium?
A) to reflect prevailing credit ratings and market conditions for the issuer
B) to enable investors to establish a tax loss when the bonds are redeemed at maturity
C) to provide the issuer with a larger deduction from pre-tax earnings for higher than usual interest
payments
D) to comply with SEC rules mandating such pricing for debt issues maturing in the year 2000 and
thereafter
4. Which of the following statements is not true about exchange traded options?
A) they are adjusted for reverse splits
B) they are adjusted for stock splits
C) they are adjusted for cash dividends
D) they are adjusted for stock dividends
5. In a best efforts distribution of a new non-exempt issue, a broker/dealer:
A) may allow a selling concession to a bank or trust company
B) agrees to buy the issue at a specified price
C) acts as an agent for the issuer
D) is not required to use an offering circular or prospectus
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: C |




