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: Mar 07, 2026

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Question 1

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

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

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

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

Question 5

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

Page: 1 / 81

Total 405 Questions | Updated On: Mar 07, 2026

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