Free FINRA Series-7 Exam Questions

Become FINRA Certified with updated Series-7 exam questions and correct answers

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Total 405 Questions | Updated On: Aug 21, 2019

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Question 1

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 : $600 capital loss

B : ither profit nor loss

C : nnot be determined without knowing the market price of XYZ upon exercise

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

Answer: A

Question 2

A NYSE floor member executing an order for a public customer asks the specialist in the stock to guarantee a price while giving the customer an opportunity to obtain a better price. This procedure is known as:

A : top order

B : opping stock

C : oor protection

D : pecial deal

Answer: B

Question 3

The most common type of bond issued by a well-established company is:

A : debenture

B : enior secured note

C : convertible

D : open-end mortgage

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 : limited

Answer: B

Question 5

Bubba decides to buy equity securities. Which of the following statements is always true about what Bubba is buying?

A : ey are readily marketable

B : ey have a fixed rate of return

C : ey have a fixed maturity date

D : ey are not secured by collateral

Answer: D

Page: 1 / 81

Total 405 Questions | Updated On: Aug 21, 2019

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