• Exam Code: Series7
  • Exam Name: General Securities Representative Examination (GS)
  • Certification Provider: FINRA
  • Corresponding Certification:FINRA Certification
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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions11%- Trade settlement and confirmation rules
- Regulatory requirements for transaction processing
- Order types and execution procedures
Seeks Business for the Broker-Dealer from Customers and Potential Customers7%- Standards for advertising and public communications
- Customer communication and solicitation rules
- Product-specific disclosures and regulatory requirements
Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives9%- Suitability rules and regulatory compliance
- Financial profile, risk tolerance, and investment objectives
- Account types and documentation requirements
Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Investment companies, ETFs, and variable annuities
- Options and derivative products
- Equity securities
- Debt securities and government obligations
- Margin accounts and taxation
- Municipal securities
- Recordkeeping and regulatory reporting
- Direct participation programs

FINRA General Securities Representative Examination (GS) Sample Questions:

1. Which of the following is true about option prices?

A) premiums on options of higher-priced stocks are usually greater than on lower-priced stocks
B) premiums on options for listed stocks are usually greater than on unlisted stocks
C) premiums on options of well-known companies are usually larger than on lesser-known companies
D) premiums on options of volatile stocks are usually larger than on less volatile stocks


2. Bubba's margin account has securities valued at $20,000 and an $8,000 credit balance. What is the
equity in Bubba's account?

A) $20,000
B) $12,800
C) $8,080
D) $28,000


3. Which of the following holders of unregistered stock is precluded from selling shares under Rule 144?

A) a broker/dealer firm
B) an officer of the issuing corporation
C) an institutional investor
D) a holder of more than 10% of the outstanding stock


4. Bubba owns a subordinated debenture in a company that is liquidating. When will he get paid?

A) after the bills are paid and the bank is paid, but before the preferred shareholders
B) after the shareholders of preferred stock
C) after the company pays its outstanding bills, but before paying bank loans
D) before the holders of secured debt


5. A mutual fund custodian is paid according to which of the following specifications when receiving deposits
from a shareholder's reinvestment plan?

A) a commission for each share purchased
B) a processing fee
C) a percentage of the fund's net asset value
D) a percentage of the sales charge


Solutions:

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

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