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

FINRA General Securities Representative Examination (GS) Sample Questions:

Question 1

Regulation A permits a short form of filing for offerings of new securities provided the total amount of the
offering does not exceed:

A. $2,000,000
B. $5,000,000
C. $2,500,000
D. $1,000,000


Question 2

What is the possible reward for investing in raw land?

A. potential capital appreciation
B. lack of investment risk
C. large deductions
D. deferred income


Question 3

Which of the following situations is possible for a writer of a covered call option?

A. selling the security he already owns
B. depositing margin into his account
C. purchasing a put option to hedge against unlimited loss potential
D. buying the underlying stock if the call is exercised


Question 4

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

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


Question 5

Registration of open-end investment company shares with the SEC implies that the:

A. SEC guarantees the accuracy of the disclosures in the registration statement
B. SEC approves the issue
C. shares have investment merit
D. prospectus contains the significant facts about the issue


Solutions:

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

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