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FINRA Series7 Exam Syllabus Topics:

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

FINRA General Securities Representative Examination (GS) Sample Questions:

1. An "accumulation unit" of a variable annuity is used to determine which of the following?

A) the value of the annuitant's contract before annuity payments begin
B) the amount returned to the annuitant upon redemption of the account
C) the amount to be passed to the annuitant's beneficiary
D) the amount of annuity payments to be paid to the owner


2. Bubba buys a US treasury bond. The interest he earns is:

A) subject to federal and state income tax
B) subject to state income tax but exempt from federal income tax
C) subject to federal income tax but exempt from state income tax
D) exempt from federal and state income tax


3. A group net order is one that benefits municipal syndicate members:

A) equally
B) according to the number of presale orders they've received
C) according to the number of designated orders they've received
D) according to their percentage participation in the account


4. The public offering price of the securities of an open-end management investment company is:

A) determined by the relative demand for the shares of the issuer
B) determined by a method set forth in the prospectus of the issuer
C) based upon net asset value of the securities underlying the shares of the issuer plus a 10 % sales
charge
D) the price used by distributors in determining sales incentive discounts to individual purchasers


5. A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of
common stock. If it already has six million shares outstanding at the time of the offering. What
subscription ratio is the corporation establishing for each new share?

A) 6 million rights per share
B) 10 million rights per share
C) 10 rights per share
D) 6 rights per share


Solutions:

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

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