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FINRA Series7 Exam Syllabus Topics:

SectionObjectives
Topic 1: Job Functions Overview- 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
        - 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 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 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:

                      A registered representative just accepted Bubba's instructions to buy a specific stock in the
                      over-the-counter market with the credit balance in his account. Which of these orders for that issue can be
                      entered and executed on a single ticket in a typical broker/dealer organization?

                      • A. buy 150 XYZ at market
                      • B. buy 150 XYZ at 17.50 or better
                      • C. all of these
                      • D. buy $2,500 worth of a mutual fund XYZ Corporation
                      Answer: C

                      Explanation: Only visible for ExamcollectionPass members. You can sign-up / login (it's free).

                      Which of the following types of investment companies pays out 90% of its net investment income to
                      shareholders?

                      • A. regulated
                      • B. diversified
                      • C. balanced
                      • D. registered
                      Answer: A

                      Explanation: Only visible for ExamcollectionPass members. You can sign-up / login (it's free).

                      A withdrawal from a Roth IRA may be a qualified distribution if the Roth IRA has been open for at least:

                      • A. 5 years
                      • B. 2 years
                      • C. 90 days
                      • D. one year
                      Answer: A

                      Explanation: Only visible for ExamcollectionPass members. You can sign-up / login (it's free).

                      What is the loan value on a call option held in a customer's margin account?

                      • A. 30%
                      • B. 50%
                      • C. 0
                      • D. the compliment of the FRB initial margin requirement for listed stocks
                      Answer: C

                      Explanation: Only visible for ExamcollectionPass members. You can sign-up / login (it's free).

                      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. $12,600
                      • B. $6,000
                      • C. $5,500
                      • D. $6,600
                      Answer: D

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