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FINRA Series7 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Regulatory requirements for transaction processing - Trade settlement and confirmation rules - Order types and execution procedures |
| Topic 2: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Customer communication and solicitation rules - Standards for advertising and public communications - Product-specific disclosures and regulatory requirements |
| Topic 3: 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 |
| Topic 4: Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Municipal securities - Options and derivative products - Equity securities - Debt securities and government obligations - Direct participation programs - Investment companies, ETFs, and variable annuities - Recordkeeping and regulatory reporting - Margin accounts and taxation |
FINRA General Securities Representative Examination (GS) Sample Questions:
An offering price of 102 plus accrued interest applies to which of the following securities?
- A. treasury bills
- B. certificates of deposit
- C. banker's acceptances
- D. commercial paper
Correct Answer: B 🗳️
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CMOs are sold and priced based upon which of the following:
- A. current yield
- B. expected average life
- C. par value
- D. stated maturity
Correct Answer: B 🗳️
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Limited partnerships try to avoid recapture because:
- A. it increases the risk of a tax audit
- B. it always increases the investor's tax bracket
- C. it turns potential capital gains into current taxable income
- D. it may subject the partnership to the add-on tax
Correct Answer: C 🗳️
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If recaptured deductions are added to income, recaptured investment tax credits are added to:
- A. basis
- B. gains
- C. taxes
- D. income
Correct Answer: C 🗳️
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A 5% markup policy applies to:
- A. mutual funds
- B. primary distributions
- C. riskless transactions
- D. registered secondaries
Correct Answer: C 🗳️
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