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: Jun 06, 2025

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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

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

A : ce value

B : minal yield

C : rate of return

D : eld to call

Answer: C

Question 3

Bubba owns stock with cumulative voting rights. There are five vacancies on a board and he owns 100 shares of stock. Bubba is entitled to cast the following votes:

A : total of 100 votes

B : total of 100 votes per

C : total of 500 votes

D : u are not allowed to vote

Answer: C

Question 4

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 5

A call option is in the money when the market value of the underlying stock is:

A : wer than the strike price of the option

B : same as the strike price of the option

C : gher than the strike price of the option

D : gher than the strike price plus the premium

Answer: C

Page: 1 / 81

Total 405 Questions | Updated On: Jun 06, 2025

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