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FINRA Series-7 - Series 7 General Securities Representative Qualification Examination (GS)

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Page: 8 / 12
Total 400 questions

The Securities Act of 1933 provides for:

A.

extension of credit in the securities industry

B.

establishment of the Securities and Exchange Commission

C.

regulation of new issues of securities

D.

all of the above

When an index option is exercised, settlement is made by:

A.

delivery of the underlying securities

B.

delivery of a futures contract

C.

cash

D.

any of the above

Bubba is buying a treasury bill. The discount he receives results in Bubba’s determination of:

A.

face value

B.

nominal yield

C.

rate of return

D.

yield to call

If recaptured deductions are added to income, recaptured investment tax credits are added to:

A.

income

B.

basis

C.

gains

D.

taxes

What is represented by the net investment income of an open-end investment company?

A.

net profits from the investment company operation

B.

net gains on sales of portfolio securities

C.

dividends, interest, and net gains on sales of securities

D.

net income from dividend and interest paid on securities in the fund portfolio

Which of the following does not appear in the official notice of sale?

A.

method and place of settlement

B.

denominations and registration privileges

C.

an offering scale of serial maturates

D.

amount of good faith check required

In early September, Bubba buys 100 shares of XYZ for $83 per share and simultaneously writes one XYZ March 90 call for $4.

What is the price for XYZ stock at which Bubba will breakeven?

A.

$94

B.

$87

C.

$86

D.

$79

To qualify as an intrastate offering under SEC Rule 147, which of the following is true of the issue?

A.

it must be approved by the SEC

B.

it must be sold only to bona fide residents of one state

C.

it cannot exceed $1,500,000 in value

D.

it must consist of common stock only

With the Regulation T requirement at 50%, a firm wishes to impose house rules that require a minimum equity of 40%.

Which of the following is true?

A.

this cannot be implemented because the level is below Reg T

B.

this cannot be implemented since maintenance requirements are only 25% of equity for long positions

C.

this is permissible

D.

this action must be approved by the FRB and FINRA

Bubba’s order to purchase investment company shares must be executed at a price based upon the net asset value of the shares:

A.

next computed after receipt of the order by the dealer

B.

last computed before receipt of the order by the dealer

C.

computed the previous day at the close of the NYSE

D.

computed the same day the order is received by the dealer