Free FINRA Series-7 Exam Questions

Become FINRA Certified with updated Series-7 exam questions and correct answers

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Total 405 Questions | Updated On: Jan 10, 2025

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Question 1

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

Answer: D

Question 2

Distribution from an IRA can begin at age 59½ and must begin by age:

A : 70½

B : 65

C : 68

D : enever the individual is retired

Answer: A

Question 3

An option that permits the holder to exercise the contract only at expiration is referred to as:

A : ropean style

B : erican style

C : rdic style

D : Asian style

Answer: A

Question 4

In June, Bubba bought 100 shares of XYZ at $35. In November, he bought a listed put in XYZ with a $35 strike price and a July expiration for a premium of $600. In April, Bubba exercises the put option and uses his stock for delivery

What is his resulting tax consequence?

A : $600 capital loss

B : ither profit nor loss

C : nnot be determined without knowing the market price of XYZ upon exercise

D : is is a wash sale and cannot be included in the investor’s tax calculations

Answer: A

Question 5

Under what circumstances may a municipal securities dealer guarantee a customer against loss in market value of bonds?

A : der no circumstances

B : ly if the agreement is in writing

C : ly if the bonds are rated AAA or Aaa

D : ly if the bonds are insured

Answer: A

Page: 1 / 81

Total 405 Questions | Updated On: Jan 10, 2025

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