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FINRA Series7 Exam Syllabus Topics:

SectionObjectives
Job Functions Overview- Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
  • 1. Ensures compliance with suitability and regulatory requirements
    • 2. Determines investment objectives, risk tolerance, and financial situation
      - Function 3: Provides Customers with Information About Investments and Makes Suitable Recommendations
      • 1. Weight: ~73% of exam content
        • 2. Explains characteristics, risks, and features of investment products
          • 3. Recommends equities, debt instruments, mutual funds, ETFs, options, and variable products
            - Function 1: Seeks Business for the Broker-Dealer
            • 1. Identifies investment opportunities and solicits new clients
              • 2. Opens accounts after obtaining and evaluating customer financial information
                - Function 4: Processes Orders and Maintains Appropriate Records
                • 1. Executes trades in accordance with customer instructions and regulations
                  • 2. Maintains required documentation and recordkeeping standards
                    • 3. Weight: ~11% of exam content

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      A mutual fund with an 8% load and a 1% redemption fee carries a current quote of $6.25 - $6.79. If an
                      investor has tendered his shares for redemption on that basis, the per share price he will receive is
                      approximately:

                      • A. $6.72
                      • B. $6.19
                      • C. $6.25
                      • D. $6.79
                      Reveal Solution  Discussion  0

                      Correct Answer: B  🗳️

                      Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

                      What is the loan value on a call option held in a customer's margin account?

                      • A. 0
                      • B. the compliment of the FRB initial margin requirement for listed stocks
                      • C. 30%
                      • D. 50%
                      Reveal Solution  Discussion  0

                      Correct Answer: A  🗳️

                      Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

                      A trust instrument drawn pursuant to the Trust Indenture Act of 1939 sets forth which of the following?

                      • A. the rights of stockholders
                      • B. the duties of the trustee
                      • C. the obligations of the issuing corporation
                      • D. both B and C
                      Reveal Solution  Discussion  0

                      Correct Answer: D  🗳️

                      Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

                      Which of the following best describes depreciation?

                      • A. a tax credit available to investors in heavy equipment
                      • B. capitalized and amortized maintenance costs
                      • C. return of principal from real estate investments
                      • D. deductions from gross income to offset lower value of equipment
                      Reveal Solution  Discussion  0

                      Correct Answer: D  🗳️

                      Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

                      Book value of a corporation is also know as:

                      • A. dilution value
                      • B. intangible value
                      • C. par value
                      • D. net tangible asset value per share
                      Reveal Solution  Discussion  0

                      Correct Answer: D  🗳️

                      Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

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