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FINRA Series7 Exam Syllabus Topics:

SectionObjectives
Topic 1: Job Functions Overview- 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 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
      • 1. Ensures compliance with suitability and regulatory requirements
        • 2. Determines investment objectives, risk tolerance, and financial situation
          - Function 4: Processes Orders and Maintains Appropriate Records
          • 1. Weight: ~11% of exam content
            • 2. Maintains required documentation and recordkeeping standards
              • 3. Executes trades in accordance with customer instructions and regulations
                - Function 3: Provides Customers with Information About Investments and Makes Suitable Recommendations
                • 1. Weight: ~73% of exam content
                  • 2. Explains characteristics, risks, and features of investment products
                    • 3. Recommends equities, debt instruments, mutual funds, ETFs, options, and variable products

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      Question 1

                      Who is responsible for verifying that limited partners meet net worth and income requirements?

                      A. the general partner
                      B. the registered representative
                      C. the limited partners
                      D. the sponsor


                      Question 2

                      The principal underwriter of an open-end investment company is frequently called:

                      A. investment counselor
                      B. participating investment advisor
                      C. selling group member
                      D. sponsor


                      Question 3

                      Which of the following statements about mutual fund fees is accurate?

                      A. the sponsor receives a management fee for buying and selling the fund's portfolio securities
                      B. the custodian receives part of the management fee in addition to a fee for safekeeping of the fund's
                      securities
                      C. the management group receives part of the sales charge in addition to a management fee
                      D. the management group receives a fee based upon the amount of assets in the fund


                      Question 4

                      The Bubba Fund is a load mutual fund that offers a reinvestment plan. What does this mean?

                      A. income, dividend, and capital gain distributions may be automatically used to purchase new shares of
                      the fund
                      B. no federal income taxes are paid on dividends and capital gain distributions from the fund
                      C. purchasers of fund shares must agree to make regular investments over a period of years
                      D. holders of fund shares are permitted to regularly purchase additional shares at the bid price


                      Question 5

                      Which of the following is not a characteristic of treasury bills?

                      A. they mature one to three years from the date of issuance
                      B. the bid price is higher than the offer price
                      C. their payments are exempt from state income tax
                      D. they are quoted on yield-to-maturity percentages


                      Solutions:

                      Question 1
                      Answer: B
                      Question 2
                      Answer: D
                      Question 3
                      Answer: D
                      Question 4
                      Answer: A
                      Question 5
                      Answer: A

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