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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions11%- Regulatory requirements for transaction processing
- Trade settlement and confirmation rules
- Order types and execution procedures
Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Margin accounts and taxation
- Recordkeeping and regulatory reporting
- Investment companies, ETFs, and variable annuities
- Direct participation programs
- Municipal securities
- Options and derivative products
- Debt securities and government obligations
- Equity securities
Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives9%- Account types and documentation requirements
- Suitability rules and regulatory compliance
- Financial profile, risk tolerance, and investment objectives
Seeks Business for the Broker-Dealer from Customers and Potential Customers7%- Product-specific disclosures and regulatory requirements
- Customer communication and solicitation rules
- Standards for advertising and public communications

FINRA General Securities Representative Examination (GS) Sample Questions:

1. Bubba buys one XYZ October 80 put and sells one XYZ October 70 put. What is his position called?

A) money spread
B) straddle
C) combination
D) calendar spread


2. The minimum denomination for a US treasury bond is:

A) $100,000
B) $10,000
C) $100
D) $1,000


3. Bubba Corporation has 3,500,000 shares of common stock outstanding and its trading volume in the few
weeks has been as follows:
Week 1 - 43,000
Week 2 - 30,900
Week 3 - 37,500
Week 4 - 42,600
Week 5 - 33,000 (the most recent week)
If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant to SEC Rule
1 44, how many shares could he sell?

A) 37,400
B) 36,000
C) 35,000
D) 38,500


4. Which of the following organizations usually has a prominent role in guiding investment policies of mutual
funds?

A) the underwriter
B) the custodian bank
C) the management group
D) the plan company


5. Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time,
XYZ stock is at $55. Bubba has no other stock positions. At what must XYZ trade for Bubba to break
even?

A) $54
B) $60
C) $57
D) $55


Solutions:

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

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