FINRA-SERIES-7 Online Practice Questions and Answers

A dealer buys 100 shares of XYZ common, which is an actively traded stock, at 23.50. Three days later, when XYZ common is quoted at 19.50 - 19.75, he sells the 100 shares to a customer. The basis for the dealer's markup is:

A. 10 5/8

B. 19 7/8

C. 23 1/2

D. 5% above cost

Which of the following persons would consider annual reports of a corporation as the most important factor in making investment decisions?

A. a technical analyst

B. a chartist

C. a follower of the Dow theory

D. a fundamental analyst

Initial margin deposit minimum requirements are set by the:

A. NYSE

B. FINRA

C. FRB

D. FDIC

Under Rule 415 a corporation may file a single registration statement with the SEC covering its anticipated financing need for the next:

A. one year

B. two years

C. three years

D. five years

What is the loan value on a call option held in a customer's margin account?

A. 0

B. 50%

C. 30%

D. the compliment of the FRB initial margin requirement for listed stocks

Bubba holds 200 shares of common stock in a utility company and receives rights to subscribe to an additional 100 shares at $20. The utility company is raising $40 million of new capital. How many rights does Bubba receive?

A. 20

B. 50

C. 100

D. 200

Which of the following municipal securities carries the full faith and credit of the US government for payment of interest and principal if the issuer's funds are insufficient?

A. general obligation bonds issued municipalities

B. special tax bonds issued by municipalities

C. revenue bonds issued by municipal port authorities

D. new housing authority bonds issued by a public housing authority

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

Which of the following would not be subject to the holding period restrictions under Rule 144?

A. restricted stock acquired via investment letter

B. restricted stock acquired via stock options plan

C. restricted stock acquired via private placement

D. restricted stock acquired via open market purchase

An investor purchasing a corporate bond regular way will have to pay the contracted price plus accrued interest:

A. up to and including the trade date

B. up to but not including the trade date

C. up to but not including the settlement date

D. up to but including the settlement date