FINRA-SERIES-7 Online Practice Questions and Answers

Which of the following is not provided for by Blue Sky laws?

A. registration of representatives

B. registration of securities offered in the state

C. interstate mail fraud in securities offerings

D. registration of securities dealers

Bubba maintains an individual cash account as well as a joint account with his wife, Bubbette. While Bubba is out of town on a fishing trip, Bubbette calls the brokerage firm with an order to buy 100 shares of Great Company, Inc., at the

market value for Bubba individual account. It is a stock Bubba has previously informed the brokerage he wanted to buy at the "right price".

What does the brokerage do?

A. refuse to accept the order unless Bubba has provided a signed trading authorization in favor of Bubbette

B. execute the order as requested

C. enter the order only after receipt of written instructions to do so from Bubba

D. buy the stock in the joint account and, after verification from Bubba, journal the security to his individual account

Which of the following is not good delivery on a sale of 470 shares?

A. 47 10-share certificates

B. 4 100-share certificates and one 70-share certificate

C. 8 50-share certificates, one 40-share certificate, and one 30-share certificate

D. 2 100-share certificates and 3 90-share certificates

A NYSE floor member executing an order for a public customer asks the specialist in the stock to guarantee a price while giving the customer an opportunity to obtain a better price. This procedure is known as:

A. a stop order

B. stopping stock

C. floor protection

D. a special deal

Bubba purchases 100 shares of XYZ at 78 and, on the same day, writes 1 XYZ October 80 call for a premium of 4. If the option expires unexercised, what is Bubba's profit on the 100 shares of stock?

A. $200

B. $400

C. $600

D. cannot be determined

Which of the following receives the highest priority of a municipal bond trustee when applying income and revenue derived from a financed toll facility?

A. renewal and replacement fund

B. operation and maintenance fund

C. bond service account fund

D. reserve maintenance fund

In regard to discretionary accounts, which of the following statements is correct?

A. the customer must approve each transaction in writing before the order is entered

B. the customer must grant written authorization to the member firm to exercise discretion in the account

C. the account must be accepted in writing by an officer of the member firm

D. both B and C

Bubba owns stock with cumulative voting rights. There are five vacancies on a board and he owns 100 shares of stock. Bubba is entitled to cast the following votes:

A. a total of 100 votes

B. a total of 100 votes per

C. a total of 500 votes

D. you are not allowed to vote

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

A. taxes

B. financing charges

C. insurance premiums

D. maintenance

Who owns a corporation?

A. the owners of debentures

B. the holders of common stock

C. the holders of common stock and the holders of preferred stock

D. the government