Practice Quiz

FINRA Series 7 Exam Prep - Question List

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6. Bubba is a registered representative who wishes to buy shares of a new issue his firm is distributing. Under FINRA Conduct Rules, Bubba may:
  1. not do so under any circumstance
  2. do so if he has a history of buying hot issues
  3. not do so for his own account, buy may purchase shares for his sister’s account
  4. do so if his allotment is insubstantial and not disproportionate to public orders
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7. Under the Investment Company Act of 1940, what is the minimum net worth of a registered investment company?
  1. $100,000
  2. $50,000
  3. $25,000
  4. $5,000
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8. Which of the following preferred issues is likely to fluctuate most in value?
  1. cumulative preferred
  2. callable preferred
  3. convertible preferred
  4. broker preferred
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9. A mutual fund characterized by a modest sales charge and an investment in a fixed portfolio of municipal securities is a:
  1. face-amount certificate company
  2. unit investment trust company
  3. management company
  4. open-end or closed-end company
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10. Bubba owns 200 shares of XYZ at $90, and wishes to hedge the position while generating income. What is the best recommendation?
  1. sell calls
  2. sell puts
  3. buy calls
  4. buy puts
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