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FINRA Series7 Exam Syllabus Topics:

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

FINRA General Securities Representative Examination (GS) Sample Questions:

FINRA advertising standards permit a dealer to state that a CMO has an implied AAA rating if the
securities are issued:

  • A. in amounts less than $1,000,000
  • B. by a private issuer who has not yet received an expected AAA rating
  • C. with an average life no longer than ten years
  • D. by a US government agency
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Which securities do not receive dividends?

  • A. warrants
  • B. ADRs
  • C. preferred stock
  • D. common stock
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Initial margin deposit minimum requirements are set by the:

  • A. FDIC
  • B. FINRA
  • C. FRB
  • D. NYSE
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Which of the following is not an investment company within the terms of the Investment Company Act of
1 940?

  • A. a unit investment trust company
  • B. a holding company dealing in mineral leaseholds
  • C. a management company
  • D. a face-amount certificate company
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Which of the following is considered a firm quotation in the over-the-counter market?

  • A. both B and C
  • B. 27.50
  • C. 27.50 subject
  • D. 27.50 workout
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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