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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: 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 |
| Topic 2: Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Suitability rules and regulatory compliance - Account types and documentation requirements - Financial profile, risk tolerance, and investment objectives |
| Topic 3: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Regulatory requirements for transaction processing - Trade settlement and confirmation rules - Order types and execution procedures |
| Topic 4: Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Direct participation programs - Debt securities and government obligations - Margin accounts and taxation - Investment companies, ETFs, and variable annuities - Equity securities - Recordkeeping and regulatory reporting - Municipal securities - Options and derivative products |
FINRA General Securities Representative Examination (GS) Sample Questions:
1. Bubba's margin account has $1,000 of SMA. If he buys $20,000 of listed securities, how much fully paid
margin stock must he deposit to respond to a Reg T requirement of 50%?
A) $20,000
B) $9,000
C) 10,000
D) $18,000
2. Partnership democracy is:
A) the sharing of management by all partners
B) a prohibition against control by a single partner
C) permission granted to the general partner to act outside the partnership agreement
D) a synonym for silent partner
3. The FINRA markup policy applies to:
A) agency sales OTC
B) principal transactions in municipal bonds
C) mutual fund sales
D) new issues of corporate securities
4. The most common type of bond issued by a well-established company is:
A) a senior secured note
B) a debenture
C) an open-end mortgage
D) a convertible
5. Which of the following is not a marketable security?
A) treasury bonds
B) Series EE bonds
C) municipal bonds
D) tax anticipation bonds
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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