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: Oct 27, 2025

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Question 1

A dealer buys 100 shares of XYZ common, which is an actively traded stock, at 23.50.

Three days later, when XYZ common is quoted at 19.50 - 19.75, he sells the 100 shares to a customer. The basis for the dealer’s markup is:

A : 10 5/8

B : 19 7/8

C : 23 1/2

D : 5?ove cost

Answer: B

Question 2

Which of the following municipal securities carries the full faith and credit of the US government for payment of interest and principal if the issuer’s funds are insufficient?

A : neral obligation bonds issued municipalities

B : ecial tax bonds issued by municipalities

C : revenue bonds issued by municipal port authorities

D : w housing authority bonds issued by a public housing authority

Answer: D

Question 3

Bubba is opening a margin account with a member organization. He wishes to purchase 100 shares of XYZ at $15 per share. What is Bubba’s initial cash deposit?

A : $375

B : $1,050

C : $1,500

D : $2,000

Answer: C

Question 4

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

Question 5

What is the importance of the “at risk” rule?

A : limits deductions to the amount at risk

B : limits liability to the amount at risk

C : ductions for interest may not exceed investment income

D : prevents carry forward of disallowed interest deductions

Answer: A

Page: 1 / 81

Total 405 Questions | Updated On: Oct 27, 2025

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