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FINRA Series7 : General Securities Representative Examination (GS)

Series7

Exam Code: Series7

Exam Name: General Securities Representative Examination (GS)

Updated: Jul 22, 2026

Q & A: 400 Questions and Answers

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Free Download real Series7 practice test

FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Business development activities
  • 2. Communications with the public
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Account types and registrations
  • 2. Suitability and customer profile
  • 3. Customer identification requirements
Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions7%- Trade execution and settlement
  • 1. Trade processing
  • 2. Settlement and confirmations
  • 3. Order handling
  • 4. Books and records requirements
Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Customer recommendations and transactions
  • 1. Asset transfers and record maintenance
  • 2. Suitability and best interest obligations
  • 3. Portfolio and risk considerations
- Investment products
  • 1. Direct participation programs
  • 2. Government securities
  • 3. Equity securities
  • 4. Municipal securities
  • 5. Investment companies and variable products
  • 6. Debt securities
  • 7. Options

FINRA General Securities Representative Examination (GS) Sample Questions:

1. When a corporation dissolves, who gets paid first?

A) the tax collector
B) senior bond holders
C) the lawyer
D) bank lenders


2. Under what circumstances may a registered investment company change its investment objective?

A) after approval by a majority vote of the shareholders
B) after SEC approval
C) after it obtains a new charter from the state secretary
D) after providing notice that is recorded in the Federal Register


3. Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share
and wishes to satisfy the margin call by delivering another listed security into his account. He may do so
by depositing stocks with a market value of:

A) $2,800
B) $4,000
C) $5,714
D) $9,333


4. The public offering price of the securities of an open-end management investment company is:

A) determined by a method set forth in the prospectus of the issuer
B) the price used by distributors in determining sales incentive discounts to individual purchasers
C) determined by the relative demand for the shares of the issuer
D) based upon net asset value of the securities underlying the shares of the issuer plus a 10 % sales
charge


5. Which of the following does not affect the public offering price of a new issue?

A) the selling group's determination of value in the prevailing market conditions
B) anticipated earnings of the issuer in the next year
C) dividend projections for the next year
D) the book value of the issuer


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A
Question # 3
Answer: D
Question # 4
Answer: A
Question # 5
Answer: A

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