[May 08, 2023] Genuine Series-7 Exam Dumps Free Demo [Q190-Q206]

[May 08, 2023] Genuine Series-7 Exam Dumps Free Demo

Printable & Easy to Use General Securities Representative Series-7 Dumps 100% Same Q&A In Your Real Exam

FINRA Series 7 Certification Path

Step 1: Fist the applicant must take and pass the SIE Exam
Step 2: After it Secure a Sponsorship
Step 3: and then Study for the Series 7 Exam
Step 4: At the end Pass the Series 7 Exam

What is the duration, language, and format of FINRA Series 7 Certification Exam

Format: Multiple choices, multiple answers
Passing score: 72%
Number of Questions: 125
Language: FINRA Series 7 offered in English (U.S.), Chinese (Simplified), Czech, Dutch, French, German, Hebrew, Italian, Japanese, Korean, Polish, Portuguese (Brazil), Russian, Spanish, and Turkish.
Length of Examination: 225 minutes

NEW QUESTION 190
Which of the following is a right for shareholders of common stock?

A. the right to vote about important matters of the company
B. the right to have the stock price increase
C. both B and C
D. the right to dividends

Answer: A

Explanation:
Explanation/Reference:
Explanation: the right to vote about important matters of the company. Shareholders have no expectation of stock price increase or dividends. They are entitled to receive dividends only if the board of directors declares them.

NEW QUESTION 191
The FINRA markup policy requires that over-the-counter transactions with a customer be at:

A. a markup not to exceed 5% of the current offering price
B. prices reasonably related to the current market price of the security
C. prices reasonably related to the dealer's cost
D. a markup based on previous activity in the customer's account

Answer: B

Explanation:
prices reasonably related to the current market price of the security. All markups must be based upon the current market rather than the dealer's cost.

NEW QUESTION 192
Which of the following would not be subject to the holding period restrictions under Rule 144?

A. restricted stock acquired via investment letter
B. restricted stock acquired via open market purchase
C. restricted stock acquired via private placement
D. restricted stock acquired via stock options plan

Answer: B

Explanation:
restricted stock acquired via open market purchase. The two-year holding period does not apply when the security is acquired in the open market. However, if the security is owned by a control person, the other provisions of Rule 144 do apply.

NEW QUESTION 193
An option that permits the holder to exercise the contract only at expiration is referred to as:

A. Nordic style
B. Asian style
C. American style
D. European style

Answer: D

Explanation:
Explanation/Reference:
Explanation: European style. These options can only be exercised at the expiration date while American style options can be exercised at any time prior to expiration.

NEW QUESTION 194
In a triple net lease, which of the following is the tenant not responsible for paying?

A. financing charges
B. taxes
C. insurance premiums
D. maintenance

Answer: A

Explanation:
Explanation/Reference:
Explanation: financing charges. In a triple net lease, the tenant is responsible for taxes, insurance, and maintenance.

NEW QUESTION 195
In comparing the premium cost of a LEAPS option with a premium of a traditional option on the same security and same strike price, which of the following is generally true?

A. the LEAPS premium will be higher than the traditional option premium
B. LEAPS premiums do not consider time value
C. the premiums will be approximately the same
D. the premium for the traditional option will be higher than the LEAPS option premium

Answer: A

Explanation:
the LEAPS premium will be higher than the traditional option premium. Because LEAPS have a longer time until expiration than traditional options, the premium should be higher.

NEW QUESTION 196
The general purpose of the Securities Act of 1933 is to:

A. provide for disclosure of the financial condition of underwriters
B. regulate the sale of securities on national exchanges
C. regulate the activities of investment advisers
D. provide for disclosure of information about new securities offerings

Answer: D

Explanation:
Explanation/Reference:
Explanation: provide for disclosure of information about new securities offerings. The 1933 act is primarily concerned with registration and disclosures relating to new securities.

NEW QUESTION 197
An excerpt from a recent tombstone ad reveals bonds offered publicly at 101.
Why were they priced at a premium?

A. to reflect prevailing credit ratings and market conditions for the issuer
B. to comply with SEC rules mandating such pricing for debt issues maturing in the year 2000 and thereafter
C. to provide the issuer with a larger deduction from pre-tax earnings for higher than usual interest payments
D. to enable investors to establish a tax loss when the bonds are redeemed at maturity

Answer: A

Explanation:
to reflect prevailing credit ratings and market conditions for the issuer. Premiums or discounts are used in bond offerings to bring the yield in line with current market conditions.

NEW QUESTION 198
The maximum contribution an employer may make to a SEP-IRA is:

A. $5,000
B. $4,000
C. 100% of employee compensation
D. 25% of employee compensation

Answer: D

Explanation:
25% of employee compensation. There is also a dollar cap that is has an annual cost-of-living adjustment.

NEW QUESTION 199
Which of the following is not usually an additional function of a mutual fund's custodial bank?

A. registrar
B. transfer agent
C. investment advisor
D. dividend disbursing agent

Answer: C

Explanation:
investment advisor. The custodial bank is usually also selected for other functions, but not as investment advisor. That assignment is generally performed by a special advisory firm or the mutual fund management company.

NEW QUESTION 200
The FINRA Conduct Rules permit a transaction made "seller's option" to be delivered earlier than the expiration of the contract if:

A. the buyer is given one-day notice in writing
B. the seller is located in New York City
C. the client requests it
D. the buyer is a non-clearing member

Answer: A

Explanation:
the buyer is given one-day notice in writing. A contract made on a "seller's option" may be terminated by the seller at an earlier date, provided that he gives the buyer one-day notice.

NEW QUESTION 201
A typical money market instrument carries which of the following?

A. long-term maturity date
B. serial bond maturity date
C. medium-term maturity date
D. short-term maturity date

Answer: D

Explanation:
short-term maturity. A money market maintains liquidity and is defined as having maturity of less than one year.

NEW QUESTION 202
Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
What is Bubba's excess equity in the account?

A. $12,000
B. $3,000
C. $18,000
D. $0

Answer: B

Explanation:
Explanation/Reference:
Explanation: $3,000. With Reg T at 50%, Bubba's equity should be half of the $30,000 account value, which is $15,000. Since his equity is $18,000 Bubba has $3,000 of excess equity.

NEW QUESTION 203
Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?

A. 98.96
B. 100.00
C. 105.10
D. 5.00

Answer: A

Explanation:
98.96. A calculator is not required for this. Even Bubba knows the bond is obviously trading at a slight discount by yielding 5.10% instead of the coupon rate of 5%. If the yield was the same as the coupon rate, the price is 100.00.

NEW QUESTION 204
With the Regulation T requirement at 50%, a firm wishes to impose house rules that require a minimum equity of 40%.
Which of the following is true?

A. this action must be approved by the FRB and FINRA
B. this cannot be implemented because the level is below Reg T
C. this is permissible
D. this cannot be implemented since maintenance requirements are only 25% of equity for long positions

Answer: C

Explanation:
Explanation/Reference:
Explanation: this is permissible. Firms may establish house rules as long as they are at least as strict as the minimum maintenance requirements. Reg T only dictates an initial requirement and does not address minimum equity.

NEW QUESTION 205
Bubba's margin account has securities valued at $20,000 and an $8,000 credit balance.
What is the equity in Bubba's account?