Finra Series-7 Exam - Topic 3 Question 115 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 115
Topic #: 3

[All Series-7 Questions]

The FINRA markup policy applies to:

Aagency sales OTC

Bprincipal transactions in municipal bonds

Cmutual fund sales

Dnew issues of corporate securities

Show Suggested Answer

Suggested Answer: A

agency sales OTC. Markup policy applies to basically all securities other than government and municipal offerings expect where the security is offered under a current prospectus. Choices C and D are offered under a prospectus. Choice B involves municipal securities. Therefore, choice A is the only correct answer.

by Becky at Jul 30, 2025, 06:41 PM

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Herman

4 months ago

Yeah, I was surprised to learn it only covers specific transactions!

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Jesusita

4 months ago

Wait, are you sure it doesn't apply to mutual funds too?

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Lera

4 months ago

Totally agree, it's all about those agency transactions!

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Ahmed

4 months ago

I thought it was just for municipal bonds, not corporate securities.

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Shaniqua

5 months ago

The FINRA markup policy is for agency sales OTC.

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Lucia

5 months ago

New issues of corporate securities seem like they wouldn't fall under the markup policy, but I could be mixing that up with something else I studied.

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Dan

5 months ago

I feel like mutual fund sales might be excluded from the markup policy, but I need to double-check that.

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Simona

5 months ago

I remember practicing a question about agency sales and the markup policy, but I can't recall if it was applicable to OTC transactions.

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Aron

5 months ago

I think the FINRA markup policy mostly applies to principal transactions, but I'm not entirely sure if it covers municipal bonds specifically.

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Daniel

6 months ago

I'm a little confused on this one. The FINRA markup policy seems relevant, but I'm not totally clear on the details of which transactions it covers. I'll have to make an educated guess here.

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Cathrine

6 months ago

Okay, I remember learning about the FINRA markup policy in class. I believe it applies to principal transactions, not agency sales. So I'm going to rule out option A. Let me re-read the other options to see which one fits best.

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Gary

6 months ago

Hmm, this is a tricky one. I know the FINRA markup policy has to do with disclosing markups on certain securities transactions, but I'm not sure which specific ones it covers. I'll have to think this through carefully.

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Juliann

6 months ago

I'm pretty sure this has to do with FINRA's markup policy, so I'll focus on that. The options mention different types of transactions, so I'll need to think about which ones the markup policy applies to.

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Krissy

7 months ago

That's a good point, Alonso. It's important to understand the different scenarios where the FINRA markup policy applies.

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Alonso

7 months ago

I believe it also applies to new issues of corporate securities, as those are often subject to markups as well.

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Melinda

8 months ago

I agree with Krissy, it makes sense since markups are often associated with bond transactions.

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Thea

8 months ago

D sounds good to me. New issues of corporate securities seem like they would be subject to the FINRA markup policy.

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Jennie

7 months ago

I agree, D does seem like the correct choice.

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Krissy

8 months ago

I think the FINRA markup policy applies to principal transactions in municipal bonds.

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Erasmo

8 months ago

Hmm, I think it might be A. Agency sales OTC seem like the most relevant option here.

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Alison

8 months ago

I'm pretty sure it's B. The FINRA markup policy definitely applies to principal transactions in municipal bonds.

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