Series-7 FINRA Series 7 General Securities Representative Qualification Examination (GS) Free Practice Exam Questions (2025 Updated)

accepting compensation from any other partnership. A general partner may be the partner is more than one partnership.

the FINRA Board of Governors. The first appeal is to the Board of Governors, then to the SEC, and then to the federal courts.

public utility companies. Interest rates most affect the companies with the greatest amount of debt. Public utility companies are highly leveraged. Hence, they most likely incur the largest effect of rising interest rates.

it limits deductions to the amount at risk. Deductions may not exceed contributed capital.

both B and C. The size of tax deductions is not a “primary” consideration.

amount of the transaction. The other choices are not FINRA considerations. The dollar amount of the transaction is one of the factors considered in markup fairness. Other factors include the type of security, the amount of service rendered, the unit price of the security, and general availability of the security.

trading in outstanding issues. Secondary market transactions involve trading in securities after the original issue is made. When an issuer offers new securities to the public it is a “primary offering”.

acts as an agent for the issuer. In a best efforts offering the investment banker acts as an agent for the issuer and makes no guarantee about selling the securities.

98.96. A calculator is not required for this. Even Bubba knows the bond is obviously trading at a slight discount by yielding 5.10% instead of the coupon rate of 5%. If the yield was the same as the coupon rate, the price is 100.00.

$3,000. The maximum contribution is 25% of compensation. That percentage of $12,000 is $3,000.

there is a 14-day owner usage provision. This provision is unrelated to qualification as a security.

long one XYZ October 20 call and one XYZ January 30 call. Options in the same class are either both puts or both calls on the same security.

sell calls. Calls are covered by the underlying stock. If the calls were exercised, the stock would be delivered to meet the obligation. The income also reduces the break-even of the stock.

long one put and short one call. This is a short straddle. A position that is long one put and long one call is a long straddle.

higher than the strike price of the option. The premium paid is not relevant. All that matters are the strike price of the option relative to the market value of the underlying stock.

all of the above. All of the choices are normal ways for the broker to fill the customer’s order.

premium. The price of closed-end investment companies is determined by trading of their shares in the open market. The price may be a discount to net asset value or a “premium” above net asset value.

one specific municipal project plus the full financial strength of the issuer. Double -barreled bonds are first payable from a specific project, but are further guaranteed by the issuing municipality.

Series EE bonds. All the other securities may be traded. Series EE bonds are purchased and held to maturity. They are not tradable.