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Finra Series-7 Exam Questions
- Topic 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers: This section covers the candidate’s ability to generate business for a broker-dealer by contacting and engaging with current and potential customers using various methods such as in-person interactions, telephone, mail, and electronic communications. It also reviews the candidate’s understanding of marketing requirements, regulatory standards for public communications, and the proper handling of promotional materials. This section of the exam measures the abilities of sales professionals in generating business for broker-dealers.
- Topic 2: Function 2: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives: In this section, the exam evaluates how candidates gather and assess customer information to open accounts. It focuses on understanding different account types, the documentation required for account registration, and the process of updating customer financial profiles and legal documents. The material emphasizes regulatory disclosures and procedures for handling retirement plans and tax-advantaged accounts. This section assesses the capabilities of client account managers in understanding and evaluating customers' financial needs.
- Topic 3: Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records: This part of the exam tests a candidate’s proficiency in advising clients by providing detailed information on investment strategies, risks, and rewards. It reviews fundamental and technical analysis, portfolio management principles, and the communication of market trends and investment performance. Additionally, it covers the importance of proper recordkeeping and the disclosure of investment risks and costs. This section evaluates the expertise of investment advisors in communicating and managing customer investments.
- Topic 4: Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes and Confirms Transactions: This section focuses on the operational aspects of executing customer transactions. It examines the candidate’s knowledge of order types, trade execution, and the processing of purchase and sale instructions. It also includes an overview of margin account requirements, order confirmation procedures, and the resolution of discrepancies or disputes. This section tests the proficiency of trading operations specialists in processing and verifying transactions.
Free Finra Series-7 Exam Actual Questions
Note: Premium Questions for Series-7 were last updated On Aug. 05, 2025 (see below)
The FINRA markup policy applies to:
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.
Under which of the following conditions are homeowners most likely to refinance existing mortgages?
when interest rates fall. Homeowners are most likely to refinance when rates are lower than the past.
In a securities underwriting a participating firm is said to be liable severally but not jointly.
What is this type of underwriting is called?
a Western account. In a Western account each underwriter has a divided liability and is responsible only for his portion of the issue. In Eastern accounts, generally used for municipal issues, the underwriter is responsible for a percentage of any unsold portion. This is called an undivided liability.
A 5% markup policy applies to:
riskless transactions. The markup policy applies to everything except securities sold under a prospectus, which is the case with the other choices.
Which of the following is not true about US treasury bills?
they are issued in denominations of $1,000 to $1,000,000. Remember, the question asks what is ''not'' true. The smallest denomination for a US treasury bill is $10,000.
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