FINRA Series7 Actual Free Exam Questions & Community Discussion
In the distribution of a new issue underwriters or selling group member are prohibited from:
Correct Answer: C
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Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at
4 7.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the
preferred stock is:
4 7.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the
preferred stock is:
Correct Answer: D
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The total assets of a corporation are $840,000, of which $350,000 are current items. Total liabilities are
$ 460,000, of which $290,00 are fixed obligations. How much is the corporation's working capital?
$ 460,000, of which $290,00 are fixed obligations. How much is the corporation's working capital?
Correct Answer: C
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Bubba is a registered representative who wishes to buy shares of a new issue his firm is distributing.
Under FINRA Conduct Rules, Bubba may:
Under FINRA Conduct Rules, Bubba may:
Correct Answer: D
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Bubba purchases 100 shares of XYZ at 78 and, on the same day, writes 1 XYZ October 80 call for a
premium of 4. If the option expires unexercised, what is Bubba's profit on the 100 shares of stock?
premium of 4. If the option expires unexercised, what is Bubba's profit on the 100 shares of stock?
Correct Answer: D
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The Bubba Corporation has 900,000 of common outstanding and holds 100,000 shares as treasury stock.
At the end of the third quarter $450,000 is distributed as a dividend on the common. How much is the
dividend per share?
At the end of the third quarter $450,000 is distributed as a dividend on the common. How much is the
dividend per share?
Correct Answer: B
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In a securities underwriting a participating firm is said to be liable severally but not jointly. What is this type
of underwriting is called?
of underwriting is called?
Correct Answer: B
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Bubba Corporation issued bonds that pay interest on January 15 and July 15 each year until maturity. An
investor purchasing these bonds on Monday, April 12, must pay the contract price plus accrued interest
for:
investor purchasing these bonds on Monday, April 12, must pay the contract price plus accrued interest
for:
Correct Answer: B
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Common stocks for which of the following industries are most likely to decline in value when interest rates
rise?
rise?
Correct Answer: A
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A short sale can be made in which of the following types of accounts?
Correct Answer: B
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