FINRA Series7 - General Securities Representative Examination (GS)
- Exam Code: Series7
- Exam Name: General Securities Representative Examination (GS)
- Updated: Aug 09, 2026
- Q & A: 400 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Suitability rules and regulatory compliance - Financial profile, risk tolerance, and investment objectives - Account types and documentation requirements |
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Product-specific disclosures and regulatory requirements - Customer communication and solicitation rules - Standards for advertising and public communications |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Order types and execution procedures - Trade settlement and confirmation rules - Regulatory requirements for transaction processing |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Debt securities and government obligations - Options and derivative products - Municipal securities - Margin accounts and taxation - Recordkeeping and regulatory reporting - Equity securities - Direct participation programs - Investment companies, ETFs, and variable annuities |
1. As a general rule, when a partnership is terminated, in what order are assets distributed?
A) general creditors, secured lenders, limited partners, general partners
B) secured lenders, general creditors, limited partners, general partners
C) secured lenders, limited partners, general creditors, general partners
D) general creditors, general partners, limited partners, secured lenders
2. Which of the following options positions is characteristic of a short straddle?
A) long one put and short one call
B) long one call and short one put
C) long one put and short one call
D) long one call and long one put
3. Bubba's margin account has $2,000 of SMA. If he buys $10,000 of new securities, how much additional
cash must he deposit assuming a Reg T requirement of 50%?
A) $5,000
B) $3,000
C) $6,000
D) $4,800
4. Provisions of SEC Rule 145 normally apply to an exchange of one security for another as a result of:
A) a stock split
B) a change in par value
C) a "no-sale" ruling issued by the SEC
D) a merger
5. An issuer is most likely to request an investment letter from the purchaser in connection with which of the
offerings?
A) an exempt security
B) a mutual fund
C) a private placement
D) a hot issue
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |
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