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FINRA Series7 Exam Syllabus Topics:
| Section | Objectives |
| Topic 1: Job Functions Overview | - Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
- 1. Ensures compliance with suitability and regulatory requirements
- 2. Determines investment objectives, risk tolerance, and financial situation
- Function 1: Seeks Business for the Broker-Dealer
- 1. Opens accounts after obtaining and evaluating customer financial information
- 2. Identifies investment opportunities and solicits new clients
- Function 3: Provides Customers with Information About Investments and Makes Suitable Recommendations
- 1. Weight: ~73% of exam content
- 2. Recommends equities, debt instruments, mutual funds, ETFs, options, and variable products
- 3. Explains characteristics, risks, and features of investment products
- Function 4: Processes Orders and Maintains Appropriate Records
- 1. Weight: ~11% of exam content
- 2. Executes trades in accordance with customer instructions and regulations
- 3. Maintains required documentation and recordkeeping standards
|
FINRA General Securities Representative Examination (GS) Sample Questions:
1. Assuming that the information contained in a registration statement is complete and accurate, the
registration statement becomes effective:
A) only after the SEC specifically clears the issue in writing to the principal underwriter
B) 10 days after receipt by the SEC
C) 20 days after receipt by the SEC
D) 30 days after receipt by the SEC
2. Which of the following items is not deducted to determine a corporation's net income?
A) interest
B) taxes
C) dividends
D) all of the above
3. Municipal bond brokers generally conduct the following:
A) trade for their own account
B) trade for dealer banks
C) both A and B
D) trade for non-bank dealers
4. Bubba is a registered representative who wishes to buy shares of a new issue his firm is distributing.
Under FINRA Conduct Rules, Bubba may:
A) not do so for his own account, buy may purchase shares for his sister's account
B) do so if his allotment is insubstantial and not disproportionate to public orders
C) do so if he has a history of buying hot issues
D) not do so under any circumstance
5. A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of
common stock. If it already has six million shares outstanding at the time of the offering. What is the
subscription price per share?
A) $6
B) $10
C) $7
D) $4
Solutions:
Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: B |