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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
| Topic 2: Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
| Topic 3: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
| Topic 4: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Customer recommendations and transactions
|
FINRA General Securities Representative Examination (GS) Sample Questions:
1. To qualify as an intrastate offering under SEC Rule 147, which of the following is true of the issue?
A) it cannot exceed $1,500,000 in value
B) it must be approved by the SEC
C) it must consist of common stock only
D) it must be sold only to bona fide residents of one state
2. Which of the following would not normally be a function of an investment banker?
A) underwriting new issues of securities
B) assisting in large secondary offerings of securities
C) providing short-term capital needs to client companies
D) providing long-term capital needs to client companies
3. Call loans made by banks to broker/dealers are generally for the purpose of which of the following?
A) financing securities held in inventory
B) carrying margin accounts
C) expansion of office facilities
D) meeting operating expenses
4. What does the following mean when printed on the stock exchange ticker tape?
A) the preceding transaction in MST was tow or more points different than 98.25
B) trading was suspended on MST pending dissemination of news
C) one hundred shares of MST traded on the exchange and appear out of order on the tape
D) the last sale of MST was for 100 shares at 98.25
5. A limit order is best describes as an order:
A) to be executed at a specific price or better
B) to sell at a specific price or higher
C) to buy at a specific price or lower
D) that is in effect for only one day
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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