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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Customer recommendations and transactions
  • 1. Portfolio and risk considerations
  • 2. Asset transfers and record maintenance
  • 3. Suitability and best interest obligations
- Investment products
  • 1. Government securities
  • 2. Direct participation programs
  • 3. Options
  • 4. Equity securities
  • 5. Investment companies and variable products
  • 6. Municipal securities
  • 7. Debt securities
Topic 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Account types and registrations
  • 2. Suitability and customer profile
  • 3. Customer identification requirements
Topic 3: Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions7%- Trade execution and settlement
  • 1. Books and records requirements
  • 2. Trade processing
  • 3. Settlement and confirmations
  • 4. Order handling
Topic 4: Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Communications with the public
  • 2. Business development activities

FINRA General Securities Representative Examination (GS) Sample Questions:

Bubba Securities, Inc. offers 3,000,000 shares of Top Notch Manufacturing Corporation common stock at
$ 27 per share. The next day an advertisement appears in the Wall Street Journal announcing the offering
and listing the names of some of the underwriting firms. This ad is commonly referred to as a:

  • A. tombstone ad
  • B. sales directive
  • C. syndicate announcement
  • D. public offering
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for ExamBoosts members. You can sign-up / login (it's free).

In the offering of new securities, members of the syndicate are permitted to sell to other dealers less the
reallowance. The amount of the reallowance is determined by:

  • A. the syndicate manager
  • B. the SEC
  • C. the FINRA
  • D. the issuing corporation
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for ExamBoosts members. You can sign-up / login (it's free).

If recaptured deductions are added to income, recaptured investment tax credits are added to:

  • A. income
  • B. taxes
  • C. gains
  • D. basis
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for ExamBoosts members. You can sign-up / login (it's free).

Bubba has a short margin account with a short market value of $22,000, a credit balance of $42,000, and
SMA of $500. What is the NYSE minimum equity maintenance for this account?

  • A. $6,000
  • B. $6,600
  • C. $5,500
  • D. $12,600
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for ExamBoosts members. You can sign-up / login (it's free).

Under Regulation T of the Federal Reserve, when may a broker overlook an amount due in a customer's
account?

  • A. if the value of a trade is less than $1,000
  • B. under no circumstances
  • C. if the client makes a request in writing
  • D. if it does not exceed $1,000
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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