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FINRA Series7 Exam Syllabus Topics:

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

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      Question 1

                      Bubba buys "double-barreled" municipal bonds. What is the source of guaranteed repayment on these
                      bonds?

                      A. all projects of the issuing municipality
                      B. one specific municipal project plus the full financial strength of the issuer
                      C. a specific municipal project plus a federal subsidy
                      D. two specific municipal projects


                      Question 2

                      Which securities do not receive dividends?

                      A. warrants
                      B. preferred stock
                      C. common stock
                      D. ADRs


                      Question 3

                      Bubba has a short margin account with a short market value of $22,000, a credit balance of $42,000, and
                      SMA of $500. What is the NYSE minimum equity maintenance for this account?

                      A. $5,500
                      B. $6,000
                      C. $6,600
                      D. $12,600


                      Question 4

                      Which of the information below does not appear in the official notice of sale?

                      A. the method and place of settlement
                      B. the type of bond
                      C. the amount of required good faith check
                      D. the names of underwriting syndicate members


                      Question 5

                      Which of the following securities provides the longest term of option privilege?

                      A. calls
                      B. warrants
                      C. puts
                      D. rights


                      Solutions:

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

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