FINRA SERIES 7 Exam 2026 (Full Actual Exam) |
All Questions and Correct Answers | Verified
Answers | Latest Exam
Kate holds 600 shares of common stock in Company B. At its annual shareholders'
meeting, the company is holding an election for its board of directors. There are 5
candidates competing for 3 board positions. If the company is using statutory
voting at its meeting, what is the maximum total number of votes that Kate can
cast for any one candidate?
A. 3,600 votes
B. 7,200 votes
C. 100 votes
D. 600 votes ---------CORRECT ANSWER-----------------D. 600 votes
A broker-dealer can offer a discounted price for mutual funds in which case?
Choose the best answer.
A. If the shares have been available to the public for more than 90 days
B. If the customer meets the breakpoint requirements and the breakpoint
schedule is listed in the prospectus
C. If it is making the sale to a customer who has previously bought mutual fund
shares from the firm
,D. If it is making the sale to a pre-existing customer ---------CORRECT ANSWER------
-----------B. If the customer meets the breakpoint requirements and the breakpoint
schedule is listed in the prospectus
The USA PATRIOT Act:
A. Requires firms to make reports regarding anti-money laundering to the U.S.
treasury, such as currency transaction reports and suspicious activity reports
B. Protects customers against broker-dealers sharing nonpublic customer
information with third parties
C. Requires companies to report all foreign securities transactions to the SEC
D. Requires brokerage firms to use a customer's name, address, date of birth, and
Social Security number or tax identification number to independently verify her
identity. ---------CORRECT ANSWER-----------------D. Requires brokerage firms to use
a customer's name, address, date of birth, and Social Security number or tax
identification number to independently verify her identity.
A customer interested in investing a small amount into equities every month asks
you which of the following investments would keep her trading costs to a
minimum:
A. No load index mutual funds
B. Stocks
,C. Treasury bills
D. ETFs ---------CORRECT ANSWER-----------------A. No load index mutual funds
Reimbursing customers for their investment losses is:
A. always prohibited
B. acceptable if the client is an accredited investor
C. only acceptable for hedge fund customers
D. prohibited unless a written contract is signed by both the customer and a
principal ---------CORRECT ANSWER-----------------A. always prohibited
In a company, which of the following represents the interests of shareholders?
A. Board of directors
B. Compliance
C. Underwriter
D. Management ---------CORRECT ANSWER-----------------A. Board of directors
Which of these interest rates is generally the highest?
, A. Federal funds rate
B. Discount rate
C. Prime rate
D. Broker call rate ---------CORRECT ANSWER-----------------C. Prime rate
Miriam, a newly married customer, provides your office with an official copy of
her marriage certificate and requests to change the name on her account. Who
could authorize this change for her?
A. Her representative
B. Any representative
C. A designated principal
D. Clerical staff ---------CORRECT ANSWER-----------------C. A designated principal
When a customer complaint involving theft is made against an associated person
of the firm, which of the following is true?
A. The firm needs to report the claim to FINRA within 30 days of the earlier of the
date that the firm or the date that the registered representative found out about
the event.
B. The firm only needs to report the claim if it involves damages of over $15,000.
All Questions and Correct Answers | Verified
Answers | Latest Exam
Kate holds 600 shares of common stock in Company B. At its annual shareholders'
meeting, the company is holding an election for its board of directors. There are 5
candidates competing for 3 board positions. If the company is using statutory
voting at its meeting, what is the maximum total number of votes that Kate can
cast for any one candidate?
A. 3,600 votes
B. 7,200 votes
C. 100 votes
D. 600 votes ---------CORRECT ANSWER-----------------D. 600 votes
A broker-dealer can offer a discounted price for mutual funds in which case?
Choose the best answer.
A. If the shares have been available to the public for more than 90 days
B. If the customer meets the breakpoint requirements and the breakpoint
schedule is listed in the prospectus
C. If it is making the sale to a customer who has previously bought mutual fund
shares from the firm
,D. If it is making the sale to a pre-existing customer ---------CORRECT ANSWER------
-----------B. If the customer meets the breakpoint requirements and the breakpoint
schedule is listed in the prospectus
The USA PATRIOT Act:
A. Requires firms to make reports regarding anti-money laundering to the U.S.
treasury, such as currency transaction reports and suspicious activity reports
B. Protects customers against broker-dealers sharing nonpublic customer
information with third parties
C. Requires companies to report all foreign securities transactions to the SEC
D. Requires brokerage firms to use a customer's name, address, date of birth, and
Social Security number or tax identification number to independently verify her
identity. ---------CORRECT ANSWER-----------------D. Requires brokerage firms to use
a customer's name, address, date of birth, and Social Security number or tax
identification number to independently verify her identity.
A customer interested in investing a small amount into equities every month asks
you which of the following investments would keep her trading costs to a
minimum:
A. No load index mutual funds
B. Stocks
,C. Treasury bills
D. ETFs ---------CORRECT ANSWER-----------------A. No load index mutual funds
Reimbursing customers for their investment losses is:
A. always prohibited
B. acceptable if the client is an accredited investor
C. only acceptable for hedge fund customers
D. prohibited unless a written contract is signed by both the customer and a
principal ---------CORRECT ANSWER-----------------A. always prohibited
In a company, which of the following represents the interests of shareholders?
A. Board of directors
B. Compliance
C. Underwriter
D. Management ---------CORRECT ANSWER-----------------A. Board of directors
Which of these interest rates is generally the highest?
, A. Federal funds rate
B. Discount rate
C. Prime rate
D. Broker call rate ---------CORRECT ANSWER-----------------C. Prime rate
Miriam, a newly married customer, provides your office with an official copy of
her marriage certificate and requests to change the name on her account. Who
could authorize this change for her?
A. Her representative
B. Any representative
C. A designated principal
D. Clerical staff ---------CORRECT ANSWER-----------------C. A designated principal
When a customer complaint involving theft is made against an associated person
of the firm, which of the following is true?
A. The firm needs to report the claim to FINRA within 30 days of the earlier of the
date that the firm or the date that the registered representative found out about
the event.
B. The firm only needs to report the claim if it involves damages of over $15,000.
