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Finra Series-7 Exam - Topic 3 Question 115 Discussion

The FINRA markup policy applies to:
A) agency sales OTC
B) principal transactions in municipal bonds
C) mutual fund sales
D) new issues of corporate securities

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:

Show Suggested Answer Hide 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
7 months ago
Yeah, I was surprised to learn it only covers specific transactions!
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Jesusita
7 months ago
Wait, are you sure it doesn't apply to mutual funds too?
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Lera
7 months ago
Totally agree, it's all about those agency transactions!
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Ahmed
7 months ago
I thought it was just for municipal bonds, not corporate securities.
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Shaniqua
8 months ago
The FINRA markup policy is for agency sales OTC.
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Lucia
8 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
8 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
8 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
9 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
9 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
9 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
9 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
9 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
10 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
10 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
11 months ago
I agree with Krissy, it makes sense since markups are often associated with bond transactions.
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Thea
11 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
10 months ago
I agree, D does seem like the correct choice.
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Krissy
11 months ago
I think the FINRA markup policy applies to principal transactions in municipal bonds.
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Erasmo
11 months ago
Hmm, I think it might be A. Agency sales OTC seem like the most relevant option here.
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Alison
11 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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