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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
| Topic 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
| Topic 3: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Customer recommendations and transactions
|
| Topic 4: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
FINRA General Securities Representative Examination (GS) Sample Questions:
1. The principal underwriter of an open-end investment company is frequently called:
A) participating investment advisor
B) sponsor
C) selling group member
D) investment counselor
2. In considering the fairness of a firm's markup, the FINRA considers:
A) amount of the transaction
B) financial condition of the client
C) dealer cost for the security
D) profitability of the member firm
3. Which of the following is not a characteristic of treasury bills?
A) they mature one to three years from the date of issuance
B) their payments are exempt from state income tax
C) they are quoted on yield-to-maturity percentages
D) the bid price is higher than the offer price
4. According to FINRA Conduct Rules, a party judged guilty of a rule infraction by the District Business
Conduct Committee may then appeal to:
A) the FINRA Board of Arbitration
B) the SEC
C) the public court system
D) the FINRA Board of Governors
5. Assuming that the information contained in a registration statement is complete and accurate, the
registration statement becomes effective:
A) 30 days after receipt by the SEC
B) 20 days after receipt by the SEC
C) 10 days after receipt by the SEC
D) only after the SEC specifically clears the issue in writing to the principal underwriter
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: D |




