Finra Series-7 Exam - Topic 4 Question 122 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 122
Topic #: 4

[All Series-7 Questions]

To accommodate a customer's order to buy an over-the-counter stock, a broker/dealer is permitted to:

Asell him shares from the firm's inventory

Bsell these shares short to the customer

Cact as agent on this transaction

Dall of the above

Show Suggested Answer

Suggested Answer: D

all of the above. All of the choices are normal ways for the broker to fill the customer's order.

by Larue at Mar 04, 2026, 05:50 AM

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Barabara

5 hours ago

I feel like C is the safest choice. Acting as an agent is standard.

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Anabel

5 days ago

I think the answer is D. All options seem valid.

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Bulah

11 days ago

Not sure about B, that sounds a bit off to me.

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Galen

16 days ago

Totally agree with A, it's the most straightforward option.

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Lyda

2 months ago

Wait, can they really sell short to the customer? That seems risky.

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Domonique

2 months ago

I think D) all of the above makes sense!

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Anthony

2 months ago

A) sell him shares from the firm's inventory is correct.

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Audry

3 months ago

I’m not so sure about C, seems a bit off.

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Leatha

3 months ago

Totally agree with D, it covers all bases.

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Vi

3 months ago

Wait, can they really sell short to the customer? Sounds risky!

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Andrew

3 months ago

Definitely A) sell from inventory.

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Janna

3 months ago

I think the answer is D) all of the above.

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Katy

3 months ago

I think the answer might be D, all of the above, but I need to double-check the rules on short selling in this context.

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Linsey

4 months ago

I feel like all of the options could be correct in different scenarios, but I can't recall the specifics for selling short to the customer.

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Lovetta

4 months ago

I remember a practice question where we discussed the roles of brokers and dealers. I think option C is definitely correct, but I’m unsure about the others.

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Lauryn

4 months ago

I think the broker can sell shares from the firm's inventory, but I'm not sure if they can also act as an agent in this case.

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