Finra Series-7 Exam - Topic 3 Question 112 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 112
Topic #: 3

[All Series-7 Questions]

A 5% markup policy applies to:

Ariskless transactions

Bprimary distributions

Cregistered secondaries

Dmutual funds

Show Suggested Answer

Suggested Answer: A

riskless transactions. The markup policy applies to everything except securities sold under a prospectus, which is the case with the other choices.

by Jina at Jun 11, 2025, 02:43 AM

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Truman

7 months ago

Really? A markup policy on riskless transactions? Sounds off.

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Glendora

7 months ago

No way, it's B for primary distributions!

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Bette

7 months ago

I thought it was for mutual funds, D.

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Peggie

7 months ago

I agree with Filiberto, A is the right choice!

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Filiberto

8 months ago

It's definitely A, riskless transactions.

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Desirae

8 months ago

I feel like registered secondaries were mentioned in our readings, but I can't recall if they specifically had a markup policy.

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Kayleigh

8 months ago

I'm a bit confused; I thought the markup policy applied to mutual funds, but now I'm second-guessing myself.

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Darell

8 months ago

I remember practicing a similar question, and I think it might be about primary distributions.

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Leonor

8 months ago

I think the 5% markup policy is related to riskless transactions, but I'm not entirely sure.

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Sherly

9 months ago

Ah, I think I've got this one. The 5% markup policy is likely referring to riskless transactions, since that's a common practice in certain financial settings.

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Erinn

9 months ago

I'm a bit unsure about this one. The options seem pretty similar, so I'll need to really focus on the key differences to determine the right answer.

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Marla

9 months ago

Okay, let's see here. A 5% markup policy - that sounds like it could apply to a few different financial transactions. I'll have to weigh the options carefully.

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Malcolm

9 months ago

Hmm, this seems like a straightforward question about markup policies. I'll need to think carefully about the differences between the options.

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Brent

12 months ago

5% markup? That's highway robbery! I'll take my business elsewhere, thank you very much.

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Ciara

10 months ago

B) primary distributions

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Katie

10 months ago

A) riskless transactions

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Lauran

10 months ago

B) primary distributions

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Yvette

11 months ago

A) riskless transactions

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Junita

12 months ago

Wait, is this a trick question? Shouldn't the markup be on riskless transactions? I'm going with A.

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Ashley

1 year ago

Hmm, I'm going with D. Mutual funds seem like the logical choice here.

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Casie

11 months ago

I think mutual funds are the right choice too.

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Wynell

11 months ago

I agree, mutual funds make sense for a 5% markup policy.

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Sheridan

11 months ago

Mutual funds are a common choice for markups, so D seems like the right answer.

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Tegan

12 months ago

I think it's mutual funds too, they usually have fees associated with them.

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Tanesha

12 months ago

I agree, mutual funds make sense for a 5% markup policy.

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Ashanti

1 year ago

I'm not sure, but I think it might also apply to registered secondaries.

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Horace

1 year ago

I agree with Chi, primary distributions make sense for a markup policy.

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Cassandra

1 year ago

Definitely C. Registered secondaries are the way to go for a 5% markup.

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Merilyn

12 months ago

Riskless transactions are definitely not part of the 5% markup policy.

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Myrtie

12 months ago

I'm not sure, but I believe primary distributions could be included as well.

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Noe

1 year ago

I think mutual funds might also fall under that 5% markup policy.

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Stevie

1 year ago

I agree, registered secondaries are a good choice for that markup.

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Gwenn

1 year ago

I think the answer is B. Primary distributions make the most sense for a 5% markup policy.

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Burma

1 year ago

I'm leaning towards mutual funds as the answer, but I see your point about primary distributions.

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Verdell

1 year ago

I think it could also apply to registered secondaries, but I'm not sure.

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Arletta

1 year ago

I agree, primary distributions seem like the best fit for a 5% markup policy.

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Chi

1 year ago

I think the 5% markup policy applies to primary distributions.

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