Most Recent Finra Series-7 Exam Questions & Answers

Prepare for the Finra General Securities Representative ination (GS) exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the Finra Series-7 exam and achieve success.

The questions for Series-7 were last updated on Dec 21, 2024.

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Question No. 1

Bubba buys one XYZ November 65 call at $3 and one XYZ November 65 put at $2. XYZ is trading at $72. The put expires and the call is closed at its intrinsic value.

What is the resulting profit?

A$200

B$300

C$500

D$700

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Correct Answer: A

$200. Since XYZ is trading at 72, a November 65 call has an intrinsic value of $700. A sale at that value compared to the cost of $300 is a profit of $400. Subtract the loss of $200 on the expired put to obtain the profit of $200.

Question No. 2

In regard to discretionary accounts, which of the following statements is correct?

Athe customer must approve each transaction in writing before the order is entered

Bthe customer must grant written authorization to the member firm to exercise discretion in the account

Cthe account must be accepted in writing by an officer of the member firm

Dboth B and C

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Correct Answer: D

both B and C. Choice A is the opposite of a discretionary account. Both B and C are standard procedures for a discretionary account.

Question No. 3

What is the name for the rate of discount from the list price that is paid to a municipal securities underwriting group member for its sales participation?

Acommission

Bconcession

Cspread

Dtakedown

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Correct Answer: D

takedown. The takedown is an additional allowance on bonds sold by a member.

Question No. 4

A registered representative privately assures a customer that a certain stock will double within 18 months. During this period the stock the stock performs as predicted.

Which of the following statements is true?

Athe commentary was permissible because the stock advanced as the registered representative forecast

Bthis is a violation because the SEC requires all information about stock prices to be publicly announced

Cthis statement constituted a form of fraud prohibited under the Securities Exchange Act of 1934

Dthe comment is permissible only if the representative had been registered with the SEC under the Investment Advisors Act of 1940

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Correct Answer: C

this statement constituted a form of fraud prohibited under the Securities Exchange Act of 1934. Such statements are fraudulent when rendered even if future events result in their accuracy.

Question No. 5

A short sale can be made in which of the following types of accounts?

Aspecial cash account

Ba custodian account

Cmargin account

Dspecial memorandum account

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Correct Answer: C

margin account. A margin account is required for short sales.

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