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

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Chun

2 days ago

I’m leaning towards D as well. Brokers can do all those things.

upvoted 0 times

...

Patti

7 days ago

A makes sense too. Selling from inventory is common practice.

upvoted 0 times

...

Glynda

12 days ago

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

upvoted 0 times

...

Golda

17 days ago

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

upvoted 0 times

...

Arminda

23 days ago

I lean towards D as well. Covers all bases in this scenario.

upvoted 0 times

...

Dannette

28 days ago

A makes sense too. Selling from inventory is common practice.

upvoted 0 times

...

Cammy

1 month ago

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

upvoted 0 times

...

Lawrence

1 month ago

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

upvoted 0 times

...

Raelene

1 month ago

I lean towards D as well. Covers all bases in this scenario.

upvoted 0 times

...

Cristal

2 months ago

A makes sense too. Selling from inventory is common practice.

upvoted 0 times

...

Barabara

2 months ago

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

upvoted 0 times

...

Anabel

2 months ago

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

upvoted 0 times

...

Bulah

2 months ago

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

upvoted 0 times

...

Galen

2 months ago

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

upvoted 0 times

...

Lyda

4 months ago

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

upvoted 0 times

...

Domonique

4 months ago

I think D) all of the above makes sense!

upvoted 0 times

...

Anthony

4 months ago

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

upvoted 0 times

...

Audry

4 months ago

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

upvoted 0 times

...

Leatha

5 months ago

Totally agree with D, it covers all bases.

upvoted 0 times

...

Vi

5 months ago

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

upvoted 0 times

...

Andrew

5 months ago

Definitely A) sell from inventory.

upvoted 0 times

...

Janna

5 months ago

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

upvoted 0 times

...

Katy

5 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.

upvoted 0 times

...

Linsey

5 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.

upvoted 0 times

...

Lovetta

6 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.

upvoted 0 times

...

Lauryn

6 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.

upvoted 0 times

...