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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Customer recommendations and transactions
  • 1. Portfolio and risk considerations
  • 2. Suitability and best interest obligations
  • 3. Asset transfers and record maintenance
- Investment products
  • 1. Equity securities
  • 2. Debt securities
  • 3. Municipal securities
  • 4. Options
  • 5. Government securities
  • 6. Direct participation programs
  • 7. Investment companies and variable products
Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Business development activities
  • 2. Communications with the public
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Account types and registrations
  • 2. Customer identification requirements
  • 3. Suitability and customer profile
Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions7%- Trade execution and settlement
  • 1. Trade processing
  • 2. Settlement and confirmations
  • 3. Books and records requirements
  • 4. Order handling

FINRA General Securities Representative Examination (GS) Sample Questions:

1. The practice of positioning stock in response to a customer's order and immediately after marking it up for
resale to the customer is:

A) a factor to consider in the FINRA guideline
B) a simultaneous transaction
C) a riskless transaction
D) all of the above


2. A leveraged company is best described as one that has a small portion of its capitalization represented
by:

A) common stock
B) debentures
C) convertible bonds
D) preferred stock


3. In the distribution of a new issue underwriters or selling group member are prohibited from:

A) selling to the public at the so-called public offering price
B) selling to another broker or dealer who needs to fill an accommodation order
C) all of the above
D) withholding blocks of a new issue in the member's account


4. If the Federal Reserve wished to ease credit, which of the following steps would it take?

A) raise the discount rate
B) lower reserve requirements
C) purchase securities in the open market
D) both B and C


5. Bubba Brokerage Corporation announces through its wire system that it has a large block of stock for sale.
Customers purchasing the stock will not pay a commission. The block is crossed on the NYSE floor and is
printed on the NYSE tape. This is called a:

A) secondary distribution
B) special order
C) exchange distribution
D) specialist block purchase


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: D
Question # 4
Answer: D
Question # 5
Answer: C

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