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:

SectionObjectives
Topic 1: Job Functions Overview- Function 3: Provides Customers with Information About Investments and Makes Suitable Recommendations
  • 1. Recommends equities, debt instruments, mutual funds, ETFs, options, and variable products
    • 2. Weight: ~73% of exam content
      • 3. Explains characteristics, risks, and features of investment products
        - 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. Opens accounts after obtaining and evaluating customer financial information
              • 2. Identifies investment opportunities and solicits new clients
                - Function 4: Processes Orders and Maintains Appropriate Records
                • 1. Maintains required documentation and recordkeeping standards
                  • 2. Executes trades in accordance with customer instructions and regulations
                    • 3. Weight: ~11% of exam content

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      When a member firm buys or sells securities directly as principal with a public customer, it is acting as:

                      • A. an agent
                      • B. a dealer
                      • C. none of the above
                      • D. a broker
                      Answer: B

                      Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

                      Bubba owns 200 shares of XYZ at $90, and wishes to hedge the position while generating income. What
                      is the best recommendation?

                      • A. sell calls
                      • B. buy calls
                      • C. sell puts
                      • D. buy puts
                      Answer: A

                      Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

                      Which of the following organizations usually has a prominent role in guiding investment policies of mutual
                      funds?

                      • A. the plan company
                      • B. the custodian bank
                      • C. the underwriter
                      • D. the management group
                      Answer: D

                      Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

                      A basis point is:

                      • A. 1.00%
                      • B. 0.10%
                      • C. 0.01%
                      • D. 0.001%
                      Answer: C

                      Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

                      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 reallowance is greater than the underwriting spread
                      • D. the underwriting spread is greater than the selling concession
                      Answer: D

                      Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

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