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FINRA Series7 Exam Syllabus Topics:

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

FINRA General Securities Representative Examination (GS) Sample Questions:

1. With respect to the public offering of securities by an underwriting syndicate, which of the following is
true?

A) the reallowance is greater than the selling concession
B) the selling concession is greater than the underwriting spread
C) the underwriting spread is greater than the selling concession
D) the reallowance is greater than the underwriting spread


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


3. How often must Investment companies issue financial statements to shareholders?

A) monthly
B) quarterly
C) semi-annually
D) annually


4. An ERISA benefits plan qualified under Section 401(a) of the Internal Revenue Code may:

A) purchase only securities issued by the state or federal government
B) apply for an exemption
C) purchase any IPO security provided the plan is not sponsored solely by a broker/dealer
D) only purchase securities rated "A" or better


5. The Securities Act of 1933 provides for:

A) establishment of the Securities and Exchange Commission
B) regulation of new issues of securities
C) extension of credit in the securities industry
D) all of the above


Solutions:

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

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