FINRA SERIES 7
Q: 1
In June, Bubba bought 100 shares of XYZ at $35. In November, he bought a listed put in XYZ with a
$35 strike price and a July expiration for a premium of $600. In April, Bubba exercises the put option
and uses his stock for delivery.
What is his resulting tax consequence?
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Q: 2
Under the Investment Company Act of 1940, what is the minimum net worth of a registered
investment company?
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Q: 3
The Bubba Insurance Company is not incorporated. It consists of Bubba and his two brothers as
general partners, who maintain an active securities account in the name of the company. If one of
the partners should suddenly die, what course of actions should be undertaken by the registered
representative at the brokerage?
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Q: 4
Which of the following securities has the highest amount of market risk?
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Q: 5
What is the name for the rate of discount from the list price that is paid to a municipal securities
underwriting group member for its sales participation?
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Q: 6
Although a corporation has no earnings in a particular year, it is obligated to pay interest on all its
outstanding debt except the following:
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Q: 7
The FINRA Conduct Rules permit a transaction made “seller’s option” to be delivered earlier than the
expiration of the contract if:
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Q: 8
Maintaining a fair and orderly market and acting as a broker’s broker are dual functions of the:
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Q: 9
Which of the following preferred issues is likely to fluctuate most in value?
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Q: 10
Limited partnerships try to avoid recapture because:
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Question 1 of 10
