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 18, 2026

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Question 1

A leveraged company is best described as one that has a small portion of its capitalization represented by:

A : mmon stock

B : eferred stock

C : debentures

D : nvertible bonds

Answer: A

Question 2

Bubba Corporation has 3,500,000 shares of common stock outstanding and its trading

volume in the few weeks has been as follows:

Week 1 - 43,000

Week 2 - 30,900

Week 3 - 37,500

Week 4 - 42,600

Week 5 - 33,000 (the most recent week)

If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant to

SEC Rule 144, how many shares could he sell?

A : 35,000

B : 36,000

C : 37,400

D : 38,500

Answer: B

Question 3

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 4

Assuming that the information contained in a registration statement is complete and accurate, the registration statement becomes effective:

A : 10 days after receipt by the SEC

B : 20 days after receipt by the SEC

C : 30 days after receipt by the SEC

D : ly after the SEC specifically clears the issue in writing to the principal underwriter

Answer: D

Question 5

Bubba holds 200 shares of common stock in a utility company and receives rights to

subscribe to an additional 100 shares at $20. The utility company is raising $40 million of

new capital.

How many rights does Bubba receive?

A : 20

B : 50

C : 100

D : 200

Answer: D

Page: 1 / 81

Total 405 Questions | Updated On: Aug 18, 2026

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