Practice Quiz

FINRA Series 7 Exam Prep - Question List

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21. A company may pay a declared dividend in which of the following ways:
  1. with stock in a subsidiary company
  2. with property
  3. with cash
  4. all of the above
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22. Book value of a corporation is also know as:
  1. net tangible asset value per share
  2. intangible value
  3. par value
  4. dilution value
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23. Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account. He may do so by depositing stocks with a market value of:
  1. $9,333
  2. $5,714
  3. $4,000
  4. $2,800
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24. Bubba owns 100 shares of XYZ at $58. He needs to limit his loss to 5 points or less and will accept a longer time for the order to be executed, to make sure the loss does not exceed 5 points. Which of the following orders would be the best recommendation?
  1. sell limit order
  2. sell stop-limit order
  3. sell stop order
  4. buy stop order
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25. Under what conditions may an FINRA member firm sell an IPO to an employee of another broker/dealer?
  1. if the amount of the purchase is small and the transaction accords with the employee’s normal investment practice
  2. if the member firm notifies the other broker/dealer of the transaction
  3. if the employing broker/dealer guarantees that resale of the securities acquired by its employee will be restricted for two years
  4. under no circumstances
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