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FINRA Series7 : General Securities Representative Examination (GS)

Series7

Exam Code: Series7

Exam Name: General Securities Representative Examination (GS)

Updated: Aug 15, 2026

Q & A: 400 Questions and Answers

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FINRA Series7 Exam Syllabus Topics:

SectionObjectives
Topic 1: Job Functions Overview- Function 4: Processes Orders and Maintains Appropriate Records
  • 1. Executes trades in accordance with customer instructions and regulations
    • 2. Weight: ~11% of exam content
      • 3. Maintains required documentation and recordkeeping standards
        - Function 1: Seeks Business for the Broker-Dealer
        • 1. Opens accounts after obtaining and evaluating customer financial information
          • 2. Identifies investment opportunities and solicits new clients
            - Function 3: Provides Customers with Information About Investments and Makes Suitable Recommendations
            • 1. Explains characteristics, risks, and features of investment products
              • 2. Recommends equities, debt instruments, mutual funds, ETFs, options, and variable products
                • 3. Weight: ~73% of exam content
                  - Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
                  • 1. Determines investment objectives, risk tolerance, and financial situation
                    • 2. Ensures compliance with suitability and regulatory requirements

                      FINRA General Securities Representative Examination (GS) Sample Questions:

                      1. What does the bond buyer placement ratio represent?

                      A) the amount of municipal bonds distributed weekly as a percentage of each week's new issue accounts
                      of more than $1 million
                      B) the amount of municipal bonds held by banks and insurance companies as a percentage of municipal
                      bonds outstanding
                      C) the par value amount of municipal bonds offered in the Blue List as a percentage of the 30-day visible
                      supply for competitive and negotiated issues
                      D) the amount of municipal bonds offered in the daily Blue List as a percentage of the day's new issue
                      amounts of more than $1 million


                      2. Which of the following pairs of terms are synonyms in connection with most mutual funds?

                      A) selling price and bid price
                      B) net asset value and redemption price
                      C) net asset value and offering price
                      D) bid price and management fee


                      3. Bubba wants to buy a $4 convertible preferred with that has a $50 par value and is exchangeable for
                      common stock at $47.50. If the preferred stock is trading at 52, what does Bubba calculate as the
                      common stock price in order to be at parity with the preferred?

                      A) a little less than 49.38
                      B) 52.00
                      C) 47.50
                      D) a little more than 54.50


                      4. Bubba plans to borrow some money and pledge securities as collateral. Which of the following can he not
                      use as collateral?

                      A) US treasury bonds
                      B) Series EE bonds
                      C) US treasury notes
                      D) US treasury bills


                      5. Which of the following best describes depreciation?

                      A) a tax credit available to investors in heavy equipment
                      B) capitalized and amortized maintenance costs
                      C) return of principal from real estate investments
                      D) deductions from gross income to offset lower value of equipment


                      Solutions:

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

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