FINRA Series7 - General Securities Representative Examination (GS)
- Exam Code: Series7
- Exam Name: General Securities Representative Examination (GS)
- Updated: Aug 28, 2026
- Q & A: 400 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Regulatory requirements for transaction processing - Order types and execution procedures - Trade settlement and confirmation rules |
| Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Financial profile, risk tolerance, and investment objectives - Suitability rules and regulatory compliance - Account types and documentation requirements |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Municipal securities - Debt securities and government obligations - Equity securities - Investment companies, ETFs, and variable annuities - Margin accounts and taxation - Recordkeeping and regulatory reporting - Direct participation programs - Options and derivative products |
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Customer communication and solicitation rules - Product-specific disclosures and regulatory requirements - Standards for advertising and public communications |
Question 1
Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the
prices listed
1 00 ABC $30
2 00 XYZ $70
2 00 QBB $40
2 00 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much how
much value of additional securities must Bubba deposit in lieu of depositing cash?
A. $15,000
B. $9,000
C. $3,000
D. $6,000
Question 2
Regulation A permits a short form of filing for offerings of new securities provided the total amount of the
offering does not exceed:
A. $5,000,000
B. $1,000,000
C. $2,000,000
D. $2,500,000
Question 3
Bonds are most often quoted as a percentage of:
A. market value
B. whatever value the broker says
C. face value
D. book value
Question 4
Which of the following is true of treasury stock?
A. it has voting rights
B. it is entitled to receive dividends
C. it is stock that has not been issued
D. it is stock that has been reacquired by the issuer
Question 5
Which are the primary considerations in evaluating the worth of a limited partnership?
A. the adequacy of funding
B. the size of the tax deductions
C. the cost of assets
D. both B and C
Solutions:
| Question 1 Answer: B | Question 2 Answer: A | Question 3 Answer: C | Question 4 Answer: D | Question 5 Answer: D |
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