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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Suitability rules and regulatory compliance - Account types and documentation requirements - Financial profile, risk tolerance, and investment objectives |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Trade settlement and confirmation rules - Regulatory requirements for transaction processing - Order types and execution procedures |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Margin accounts and taxation - Investment companies, ETFs, and variable annuities - Equity securities - Recordkeeping and regulatory reporting - Municipal securities - Direct participation programs - Options and derivative products - Debt securities and government obligations |
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Customer communication and solicitation rules - Product-specific disclosures and regulatory requirements - Standards for advertising and public communications |
FINRA General Securities Representative Examination (GS) Sample Questions:
1. 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
subscription ratio is the corporation establishing for each new share?
A) 10 million rights per share
B) 6 rights per share
C) 10 rights per share
D) 6 million rights per share
2. 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) term bond
C) special tax bond
D) pre-issue bond
3. Which of the following persons would consider annual reports of a corporation as the most important
factor in making investment decisions?
A) a follower of the Dow theory
B) a fundamental analyst
C) a chartist
D) a technical analyst
4. Crossover is best defined as:
A) the point at which the program becomes profitable
B) the point at which income exceeds deductions
C) the profit of limited partners exceeding profit of general partners
D) the fact that there are more general partners than limited partners
5. Distribution from an IRA can begin at age 591/2 and must begin by age:
A) 68
B) 701/2
C) 65
D) whenever the individual is retired
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: B |
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