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FINRA Series7 Exam Syllabus Topics:

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

FINRA General Securities Representative Examination (GS) Sample Questions:

Question #1

Bubba owns a subordinated debenture in a company that is liquidating. When will he get paid?

  • A. after the shareholders of preferred stock
  • B. after the company pays its outstanding bills, but before paying bank loans
  • C. before the holders of secured debt
  • D. after the bills are paid and the bank is paid, but before the preferred shareholders
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Correct Answer: D  🗳️

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Question #2

Under Rule 415 a corporation may file a single registration statement with the SEC covering its
anticipated financing need for the next:

  • A. one year
  • B. five years
  • C. two years
  • D. three years
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Correct Answer: C  🗳️

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Question #3

Which of the following is not true about mutual funds and variable annuities?

  • A. the holder of each must pay income taxes on the dividends received each year
  • B. each is regulated under the Investment Company Act of 1940
  • C. the payout of each depends on the investment results of the securities owned in the portfolio
  • D. the registered representative must have FINRA registration to solicit either one
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Correct Answer: A  🗳️

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Question #4

Regulation A permits a short form of filing for offerings of new securities provided the total amount of the
offering does not exceed:

  • A. $2,000,000
  • B. $5,000,000
  • C. $1,000,000
  • D. $2,500,000
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Question #5

In a best efforts distribution of a new non-exempt issue, a broker/dealer:

  • A. is not required to use an offering circular or prospectus
  • B. agrees to buy the issue at a specified price
  • C. acts as an agent for the issuer
  • D. may allow a selling concession to a bank or trust company
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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