FINRA Series 7 Exam Practice Test 16

1. Which of the following is required on the registration statement for a new issue?

I. The capitalization of the issuer

II. Complete financial statements

III. What the money raised will be used for

IV. The names and addresses of all of the issuer's control persons

2. Under the Securities Act of 1933, which of the following securities must be registered with the SEC?

3. Which of the following are exempt transactions?

I. Securities issued by the U.S. government

II. Securities issued by banks

III. Intrastate offerings

IV. Regulation A offerings

4. A customer's confirmation must include

I. the customer's account number

II. whether the customer bought, sold, or sold short

III. the price of the security

IV. the markup, markdown, or commission

5. Which of the following would qualify as management companies?

6. Which of the following is TRUE regarding qualified retirement plans?

7. Variable annuities must be registered with the

I. Department of State

II. State Banking Commission

III. State Insurance Commission

IV. Securities and Exchange Commission

8. All of the following items must be included on a trade confirmation EXCEPT

9. The safeguarding of customer's non-public information is covered under

10. An agent's recommendations to a customer

I. must be approved in advance by a manager

II. must be in line with the customer's risk tolerance and investment objectives

III. must be reviewed by a principal if they result in a trade

IV. must be in accordance with Federal Reserve Board rules

11. If one of your clients wants to order municipal securities that you believe to be unsuitable for their investment objectives, what should you do?

12. Mr. T. Jefferson bought ten municipal bonds at 105 with ten years to maturity. Three years later, he sold the bonds for 102. His tax consequence is a

13. Qualified cash dividends are currently taxed at which rates?

I. 0 percent

II. 10 percent

III. 15 percent

IV. 20 percent

14. All broker-dealers need to maintain customer identification programs and should check the names of all new clients against

15. Which of the following statements is NOT true of life-cycle funds?

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