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FINRA Series7 Exam Syllabus Topics:

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

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      Question 1

                      A NYSE floor member executing an order for a public customer asks the specialist in the stock to
                      guarantee a price while giving the customer an opportunity to obtain a better price. This procedure is
                      known as:

                      A. stopping stock
                      B. a special deal
                      C. a stop order
                      D. floor protection


                      Question 2

                      How many days after the settlement date must a broker/dealer "buy in" a customer who has failed to
                      deliver securities?

                      A. 15 days
                      B. 10 days
                      C. 30 days
                      D. 45 days


                      Question 3

                      Bubba buys a bond issued at par with a 5% coupon that is convertible into common stock at $40. The
                      bond increases in value by 20 points. What is the conversion parity of the stock?

                      A. $50
                      B. $25
                      C. $48
                      D. $40


                      Question 4

                      The net asset value of a mutual fund was $9.72 last month. This month it is calculated at $9.85. What is
                      the change in value called?

                      A. appreciation
                      B. yield
                      C. capital gain
                      D. asset revaluation


                      Question 5

                      How often must Investment companies issue financial statements to shareholders?

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


                      Solutions:

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

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