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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Account types and documentation requirements - Financial profile, risk tolerance, and investment objectives - Suitability rules and regulatory compliance |
| Topic 2: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Product-specific disclosures and regulatory requirements - Customer communication and solicitation rules - Standards for advertising and public communications |
| Topic 3: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Trade settlement and confirmation rules - Order types and execution procedures - Regulatory requirements for transaction processing |
| Topic 4: Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Equity securities - Margin accounts and taxation - Debt securities and government obligations - Municipal securities - Investment companies, ETFs, and variable annuities - Options and derivative products - Recordkeeping and regulatory reporting - Direct participation programs |
FINRA General Securities Representative Examination (GS) Sample Questions:
1. Which of the following organizations usually has a prominent role in guiding investment policies of mutual
funds?
A) the underwriter
B) the management group
C) the plan company
D) the custodian bank
2. Bubba buys "double-barreled" municipal bonds. What is the source of guaranteed repayment on these
bonds?
A) all projects of the issuing municipality
B) two specific municipal projects
C) one specific municipal project plus the full financial strength of the issuer
D) a specific municipal project plus a federal subsidy
3. Smart Guys Securities Corporation has given a workable bid to Better Guys Securities Corporation. If
market conditions change, Smart Guys may:
A) change the bid only with prior approval of the other dealer
B) change the bid
C) not change the bid unless first notifying the other dealer
D) not change the bid
4. A new stock offering by Bubba Corporation provides details that state between 1,000,000 and 1,500,000
shares will be sold depending upon market conditions. This offering is a:
A) market potential
B) standby
C) best efforts
D) mini-max
5. A company earns $6 per share and pays out 20% in common stock dividends. What does the stock yield if
it sells at $30 per share?
A) 4%
B) 2.5%
C) 6%
D) 10%
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |


