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FINRA Series7 Exam Syllabus Topics:

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

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      1. A NYSE floor member executing an order for a public customer asks the specialist in the stock to
                      guarantee a price while giving the customer an opportunity to obtain a better price. This procedure is
                      known as:

                      A) stopping stock
                      B) a special deal
                      C) a stop order
                      D) floor protection


                      2. Which of the following receives the highest priority of a municipal bond trustee when applying income and
                      revenue derived from a financed toll facility?

                      A) operation and maintenance fund
                      B) bond service account fund
                      C) reserve maintenance fund
                      D) renewal and replacement fund


                      3. Feasibility studies and engineering surveys are most necessary prior to which of the following new
                      offerings?

                      A) revenue bonds
                      B) general obligation bonds
                      C) corporate debentures
                      D) limited tax bonds


                      4. Which of the following securities has the highest amount of market risk?

                      A) US treasury bills
                      B) US treasury certificates
                      C) US treasury notes
                      D) savings bank deposits


                      5. Who obtains and pays the municipal bond attorney rendering a legal opinion about the validity of the bond
                      issue?

                      A) the issuing municipality
                      B) the purchaser of the bonds
                      C) the municipality's financial adviser
                      D) the underwriter


                      Solutions:

                      Question # 1
                      Answer: A
                      Question # 2
                      Answer: A
                      Question # 3
                      Answer: A
                      Question # 4
                      Answer: C
                      Question # 5
                      Answer: A

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