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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. Suitability and best interest obligations
  • 2. Asset transfers and record maintenance
  • 3. Portfolio and risk considerations
- Investment products
  • 1. Debt securities
  • 2. Equity securities
  • 3. Investment companies and variable products
  • 4. Municipal securities
  • 5. Direct participation programs
  • 6. Government securities
  • 7. Options
Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Communications with the public
  • 2. Business development activities
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Customer identification requirements
  • 2. Account types and registrations
  • 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. Books and records requirements
  • 3. Settlement and confirmations
  • 4. Order handling

FINRA General Securities Representative Examination (GS) Sample Questions:

1. A stock with a current P/E of 17 is selling at $74.50 per share. What are the company's earnings in the
trailing 12 months?

A) $1.70
B) about $4.28
C) impossible to calculate from this information
D) $6.20


2. Bubba Corporation has a profit sharing plan. The company president, Bubba, is receiving the maximum
plan contribution amount. The corporation has one other employee, who is eligible for the plan. If this
person earns $12,000 per year, how much must be deposited in the plan for the employee?

A) $12,000
B) $3,000
C) $1,800
D) $6,000


3. In stabilizing a new issue, the manager may make a "syndicate penalty bid". This means that:

A) the underwriter will be penalized his profit on any securities repurchased from his clients
B) the manager will charge the syndicate the value of the shares
C) all stock purchased will be returned to the issuing corporation
D) any shares repurchased are added to the treasury stock of the issuing corporation


4. Which of the following statements is pertinent to closed-end investment companies?

A) they are prohibited from issuing any securities other than common stock
B) they are continuously issuing new shares
C) their shares are redeemable at net asset value
D) their shares are traded at prices determined in the open market


5. In the offering of new securities, members of the syndicate are permitted to sell to other dealers less the
reallowance. The amount of the reallowance is determined by:

A) the issuing corporation
B) the syndicate manager
C) the SEC
D) the FINRA


Solutions:

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

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