Free Practice FINRA Series-7 Exam Questions 2025

Stay ahead with 100% Free General Securities Representative Series-7 Dumps Practice Questions

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Total 405 Questions | Updated On: Apr 23, 2025

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Question 1

Which of the following is not usually an additional function of a mutual fund’s custodial bank?

A : transfer agent

B : investment advisor

C : registrar

D : dividend disbursing agent

Answer: B

Question 2

Bubba Corporation has 3,500,000 shares of common stock outstanding and its trading

volume in the few weeks has been as follows:

Week 1 - 43,000

Week 2 - 30,900

Week 3 - 37,500

Week 4 - 42,600

Week 5 - 33,000 (the most recent week)

If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant to

SEC Rule 144, how many shares could he sell?

A : 35,000

B : 36,000

C : 37,400

D : 38,500

Answer: B

Question 3

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 : a $600 capital loss

B : neither profit nor loss

C : cannot be determined without knowing the market price of XYZ upon exercise

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

Answer: A

Question 4

Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time, XYZ stock is at $55. Bubba has no other stock positions. What is Bubba’s maximum possible profit?

A : $500

B : $600

C : $1,000

D : unlimited

Answer: B

Question 5

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

Answer: A

Page: 1 / 81

Total 405 Questions | Updated On: Apr 23, 2025

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