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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
| Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
| 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:
Question 1
In regard to discretionary accounts, which of the following statements is correct?
A. the customer must grant written authorization to the member firm to exercise discretion in the account
B. the account must be accepted in writing by an officer of the member firm
C. the customer must approve each transaction in writing before the order is entered
D. both B and C
Question 2
The market theory stating that the small investor is usually wrong is called the:
A. short interest theory
B. Dow theory
C. odd-lot theory
D. advance-decline theory
Question 3
Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of
the tax?
A. tax anticipation bill
B. special tax bond
C. pre-issue bond
D. term bond
Question 4
Bubba Corporation has 3,500,000 shares of common stock outstanding and its trading volume in the few
weeks has been as follows:
Week 1 - 43,000
Week 2 - 30,900
Week 3 - 37,500
Week 4 - 42,600
Week 5 - 33,000 (the most recent week)
If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant to SEC Rule
1 44, how many shares could he sell?
A. 38,500
B. 36,000
C. 35,000
D. 37,400
Question 5
An investment company incapable of issuing a long-term debt instrument is:
A. a unit investment trust
B. a closed-end investment company
C. an open-end investment company
D. a face-amount certificate company
Solutions:
| Question 1 Answer: D | Question 2 Answer: C | Question 3 Answer: A | Question 4 Answer: B | Question 5 Answer: C |
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