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Exam Code: Series7
Exam Name: General Securities Representative Examination (GS)
Updated: Aug 07, 2026
Q & A: 400 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
| Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
| Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
| Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Customer recommendations and transactions
|
1. Which of the following registered investment companies normally sells with an appropriate commission
added to the contract price?
A) a unit investment trust
B) an open-end investment company
C) a face-amount certificate company
D) a closed-end investment company
2. 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 is permissible
C) this cannot be implemented since maintenance requirements are only 25% of equity for long positions
D) this cannot be implemented because the level is below Reg T
3. The agreement between the members of a syndicate and the manager is known as the:
A) underwriting agreement
B) agreement among underwriters
C) standby agreement
D) selling agreement
4. A bank or trust company that is acting as custodian for a mutual fund does which of the following?
A) provides investment advice to the fund's managers
B) redeem and issues fund shares
C) guarantees investor losses on investments
D) physically protects the fund's assets
5. Which of the following is not prohibited of a general partner?
A) acting in such a way as to impede the orderly business of the partnership
B) competing in any way with the partnership
C) buying or selling assets of the partnership except to foster the business of the partnership
D) accepting compensation from any other partnership
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |
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