FINRA General Securities Representative Examination (GS) : Series7 Exam

  • Exam Code: Series7
  • Exam Name: General Securities Representative Examination (GS)
  • Updated: Oct 30, 2026
  • Q & A: 400 Questions and Answers

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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Customer recommendations and transactions
  • 1. Suitability and best interest obligations
  • 2. Asset transfers and record maintenance
  • 3. Portfolio and risk considerations
- Investment products
  • 1. Municipal securities
  • 2. Equity securities
  • 3. Debt securities
  • 4. Government securities
  • 5. Investment companies and variable products
  • 6. Direct participation programs
  • 7. Options
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
Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Business development activities
  • 2. Communications with the public
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Account types and registrations
  • 2. Customer identification requirements
  • 3. Suitability and customer profile

FINRA General Securities Representative Examination (GS) Sample Questions:

Question #1

Which of the following holders of unregistered stock is precluded from selling shares under Rule 144?

  • A. an officer of the issuing corporation
  • B. an institutional investor
  • C. a broker/dealer firm
  • D. a holder of more than 10% of the outstanding stock
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

A corporate bond is quoted as having a net change in value of plus one point. By how much did the bond
price increase?

  • A. $1
  • B. $1,000
  • C. $10
  • D. $100
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of
the tax?

  • A. pre-issue bond
  • B. special tax bond
  • C. term bond
  • D. tax anticipation bill
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #4

Municipal syndicate allocation procedures are described in which of the following?

  • A. syndicate account letter
  • B. underwriting agreement
  • C. agreement among the underwriters
  • D. official statement
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

In June, Bubba bought 100 shares of XYZ at $35. In November, he bought a listed put in XYZ with a $35
strike price and a July expiration for a premium of $600. In April, Bubba exercises the put option and uses
his stock for delivery. What is his resulting tax consequence?

  • A. neither profit nor loss
  • B. a $600 capital loss
  • C. this is a wash sale and cannot be included in the investor's tax calculations
  • D. cannot be determined without knowing the market price of XYZ upon exercise
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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