Pre-Summer Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code = getmirror

Home
FINRA
General Securities Representative
Series-7
Series 7 General Securities Representative Qualification Examination (GS) Questions and Answers

Pass the FINRA General Securities Representative Series-7 Questions and answers with ExamsMirror

Practice at least 50% of the questions to maximize your chances of passing.

Exam Series-7 Premium Access

View all detail and faqs for the Series-7 exam

Go to Exam

7918 Students Passed

95% Average Score

96% Same Questions

Viewing page 11 out of 12 pages

Viewing questions 101-110 out of questions

Questions # 101:

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

Options:

anticipated earnings of the issuer in the next year

dividend projections for the next year

the book value of the issuer

the selling group’s determination of value in the prevailing market conditions

Answer

Explanation

the selling group’s determination of value in the prevailing market conditions. The offering price is determined by factors related to the issuer.

Questions # 102:

A new stock offering by Bubba Corporation provides details that state between 1,000,000 and 1,500,000 shares will be sold depending upon market conditions. This offering is a:

Options:

best efforts

standby

mini-max

market potential

Answer

Explanation

mini-max. These offerings state the minimum and maximum number of shares offered.

Questions # 103:

In terms of depletion, percentage depletion is better than cost depletion because it:

Options:

permits recovery of more than the original cost

is limited to production

is more widely available

is not subject to recapture

Answer

Explanation

permits recovery of more than the original cost. Percentage depletion is only available for small producing wells.

Questions # 104:

In the offering of new securities, members of the syndicate are permitted to sell to other dealers less the reallowance. The amount of the reallowance is determined by:

Options:

the FINRA

the issuing corporation

the syndicate manager

the SEC

Answer

Explanation

the syndicate manager. The reallowance as well as the selling concession given to selling group members are determined by the managing underwriters.

Questions # 105:

The term “mutual fund” is popularly used for which of the following?

Options:

all investment companies

pension funds

open-end investment companies

closed-end investment companies

Answer

Explanation

open-end investment companies. The term is generally applied to open-end investment companies.

Questions # 106:

Under the terms of the 1970 Securities Investor Protection Act, what is the status of a customer whose account assets exceed SIPC insurance coverage when his broker/dealer becomes insolvent?

Options:

the US Treasury is pledged to make up the deficiency

all broker/dealers are assessed to fully satisfy the deficiency

the customer becomes a general creditor of the insolvent firm for the amount of deficiency

SIPC will issue a debenture to guarantee eventual repayment of the deficiency

Answer

Explanation

the customer becomes a general creditor of the insolvent firm for the amount of deficiency. After the SIPC coverage is exhausted, the customer becomes a general creditor. Due to the insolvency of the broker/dealer, there is no likelihood of the customer receiving restitution.

Questions # 107:

In a firm commitment offering, any shares that are not sold are:

Options:

returned to the issuing corporation

listed in the over-the-counter market

transferred to treasury stock

owned by the members of the syndicate

Answer

Explanation

owned by the members of the syndicate. In a firm commitment the underwriter buys the securities from the issuing company. If they don’t sell to the public, they are owned by the underwriters.

Questions # 108:

Under Regulation T, when must money be deposited to cover requirements for Bubba’s new purchases on margin?

Options:

no later than the fifth business day after the trades

no later than the seventh business day after the trades

on the day of the trades

on the next business day following the trades

Answer

Explanation

no later than the fifth business day after the trades. Bubba should pay up no later than the fifth business day.

Questions # 109:

The practice of positioning stock in response to a customer’s order and immediately after marking it up for resale to the customer is:

Options:

a factor to consider in the FINRA guideline

a simultaneous transaction

a riskless transaction

all of the above

Answer

Explanation

all of the above. A transaction that is simultaneous and thus riskless calls for a smaller than usual markup under FINRA guidelines.

Questions # 110:

A market-maker has purchased a particular stock over a period of time for prices as high as $9 per share and as low as $3 per share. The average cost is approximately $6 per share. The current NASDAQ quote for the stock is 5 to 5.25. According to the FINRA Conduct Rules, the dealer’s offering price to the public should be based upon: