Free FINRA Series7 Practice Test & Real Exam Questions
For what time period does a Form 144 remain in effect?
Correct Answer: B
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The agreement between the members of a syndicate and the manager is known as the:
Correct Answer: C
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The return by the receiving party of securities previously accepted for delivery or a demand by the
delivering party for return of securities that have been delivered is called:
delivering party for return of securities that have been delivered is called:
Correct Answer: B
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Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of
municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold
but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the
account?
municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold
but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the
account?
Correct Answer: D
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The Bubba Insurance Company is not incorporated. It consists of Bubba and his two brothers as general
partners, who maintain an active securities account in the name of the company. If one of the partners
should suddenly die, what course of actions should be undertaken by the registered representative at the
brokerage?
partners, who maintain an active securities account in the name of the company. If one of the partners
should suddenly die, what course of actions should be undertaken by the registered representative at the
brokerage?
Correct Answer: A
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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?
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?
Correct Answer: C
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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?
account assets exceed SIPC insurance coverage when his broker/dealer becomes insolvent?
Correct Answer: B
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Which of the following sets of prices is that of a closed-end investment company?
Correct Answer: B
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What expression is used to describe the application of income and revenues derived from the operation of
a facility financed from proceeds of a revenue bond?
a facility financed from proceeds of a revenue bond?
Correct Answer: A
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Bubba's order to purchase investment company shares must be executed at a price based upon the net
asset value of the shares:
asset value of the shares:
Correct Answer: A
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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: D
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Approval for a registered investment company to change is investment objective from income to growth is
required from which of the following?
required from which of the following?
Correct Answer: A
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Which of the following is a benefit of Section 8 low-income housing partnerships?
Correct Answer: D
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Under the Investment Company Act of 1940, what is the minimum net worth of a registered investment
company?
company?
Correct Answer: A
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