FINRA Series 7 - Equity & Debt
Securities 2025/2026 Exam Questions
and Answers | A+ Score Assured
Why would a company buy back stock? - 🧠 ANSWER ✔✔Increases E/S and use
for future acquisitions
What are debentures? - 🧠 ANSWER ✔✔A debt instrument NOT secured by
physical assets or collateral, backed only by the creditworthiness of the issuer
What do shareholders get to vote on? - 🧠 ANSWER ✔✔Issuance of new securities,
stock splits, and board members
Who issues ADRs? - 🧠 ANSWER ✔✔Large commercial U.S. banks (foreign
department within the bank does the issuance)
,Transfer agent vs. registrar - 🧠 ANSWER ✔✔Transfer agent - distributes
additional shares in the event of forward stock splits or new certificates in reverse
stock splits
Registrar - ensures corps. do not exceed their authorized shares
DERP
When is the ex-date? - 🧠 ANSWER ✔✔Declaration, ex, recorded, payment
Ex-date (set by exchanges) is TWO days before record date (set by BOD)
Why is preferred stock similar to bonds? - 🧠 ANSWER ✔✔Affected by IR
Decrease in IR means increase in value, and vice versa
The overnight repo interest rate is usually lower than bank rates and just below or
comparable to the:
, 3
A)
prime rate.
B)
T-bill rate.
C)
discount rate.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, D)
Fed funds rate. - 🧠 ANSWER ✔✔Fed funds rate
Which of the following statements are TRUE of Ginnie Maes?
I.They are quoted in 1/8ths.
II.They are quoted in 1/32nds.
III.They are traded with an accrued interest computed on an actual day basis.
IV.They are traded with an accrued interest computed on a 30/360 basis.
A)
II and III.
Securities 2025/2026 Exam Questions
and Answers | A+ Score Assured
Why would a company buy back stock? - 🧠 ANSWER ✔✔Increases E/S and use
for future acquisitions
What are debentures? - 🧠 ANSWER ✔✔A debt instrument NOT secured by
physical assets or collateral, backed only by the creditworthiness of the issuer
What do shareholders get to vote on? - 🧠 ANSWER ✔✔Issuance of new securities,
stock splits, and board members
Who issues ADRs? - 🧠 ANSWER ✔✔Large commercial U.S. banks (foreign
department within the bank does the issuance)
,Transfer agent vs. registrar - 🧠 ANSWER ✔✔Transfer agent - distributes
additional shares in the event of forward stock splits or new certificates in reverse
stock splits
Registrar - ensures corps. do not exceed their authorized shares
DERP
When is the ex-date? - 🧠 ANSWER ✔✔Declaration, ex, recorded, payment
Ex-date (set by exchanges) is TWO days before record date (set by BOD)
Why is preferred stock similar to bonds? - 🧠 ANSWER ✔✔Affected by IR
Decrease in IR means increase in value, and vice versa
The overnight repo interest rate is usually lower than bank rates and just below or
comparable to the:
, 3
A)
prime rate.
B)
T-bill rate.
C)
discount rate.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, D)
Fed funds rate. - 🧠 ANSWER ✔✔Fed funds rate
Which of the following statements are TRUE of Ginnie Maes?
I.They are quoted in 1/8ths.
II.They are quoted in 1/32nds.
III.They are traded with an accrued interest computed on an actual day basis.
IV.They are traded with an accrued interest computed on a 30/360 basis.
A)
II and III.
