The Series 7 Exam is required for individuals who are entering the securities industry. You must pass it to qualify for the solicitation, purchase, and/or sale of all securities products. The test is administered by the Financial Industry Regulatory Authority (FINRA). Our free Series 7 practice exam is great for exam prep. Try these Series 7 exam questions to make sure you’re prepared.
Which of the following is NOT a type of economic indicator?
Which Act created the SEC?
Securities Act of 1933
Securities Exchange Act of 1934
Investment Company Act of 1940
Securities Exchange Commission Act of 1931
NASDAQ Market Makers are required to report each trade within how many seconds of execution?
No requirement to report.
What is the maximum potential loss when holding a long straddle position?
Strike Price of Long Call + Net Premium Paid.
Strike Price of Long Put − Net Premium Paid.
Which of these calls would have the largest premium?
JKL October 25 call.
JKL October 30 call.
JKL October 35 call.
JKL October 40 call.
AAA is trading at $55. Mr. Jones buys a May 60 call at $1 and sells a May 50 call at $7. What options strategy has he implemented?
Bull Call Spread.
Bear Call Spread.
Bull Put Spread.
This type of underwriting contract is safest for the issuer, but also the most expensive.
Ms. Johnson sees that CBA is trading at $53. She buys a December 50 put for $150 and she writes a December 55 put for $400. The stock closes at $59 on the expiration date of the options. What is her profit or loss?
Which of the below statements is/are true regarding a ‘red herring?’
I. It does not contain the Effective Date of the offering.
II. It may be used to solicit indications of interest from customers.
III. It is also known as a preliminary prospectus.
I and III
I, II and III
None of the above.
What percentage of its income is a REIT required to distribute to its equity investors?
Renee sells 500 shares of SJM short at a price of $55. What is the credit balance in her margin account as the result of this transaction?
Your client is selling restricted shares of a stock that is quoted on NASDAQ. One of the conditions of their Rule 144 sale is that the amount of stock they sell in a 3-month period cannot exceed the greater of 1% of the outstanding shares of the same class being sold or:
the highest weekly trading volume during the six weeks preceding the filing.
the average daily trading volume during the week after the filing.
the average daily trading volume during the week preceding the filing.
the average weekly trading volume during the four weeks preceding the filing.
Which of the following is NOT true of the Dow Jones Industrial Average?
There are 30 stocks in the index.
It's an index that tracks 30 industrial stocks.
It's a price-weighted index.
It's a closely watched benchmark of stock market activity.
Holders of this type of preferred stock have the opportunity to receive additional dividends if the company attains certain predetermined financial goals.
A municipality issues 30,000 bonds at an offering price of $1,000. The syndicate manager's fee is $1.00 per bond. The selling concession is $4.50 per bond and the total takedown is $7.75 per bond. How much will the issuer receive per bond?
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Series 7 Exam
This exam consists of 135 multiple choice questions (125 scored, and 10 unscored) which must be answered within 3 hours and 45 minutes. It is very challenging, so make sure you do plenty of Series 7 exam prep. You will want to work through our Series 7 practice exam along with plenty of additional practice questions.