age 1 of 99
FINRA SERIES 7 EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND VERIFIED CORRECT
SOLUTIONS WITH RATIONALES || 100%
GUARANTEED PASS <RECENT VERSION>
What information must be disclosed by a broker dealer in a
research report? ......ANSWER........Any investment banking
compensation paid in past 12 months, anticipated price target,
if analyst is a director of the company, any ownership in the
company held by the analyst or analyst family members.
Subordinated Debenture Bonds ......ANSWER........Unsecured
bonds, secured by the full faith and credit and no specific
collateral of the corporation.
Section 457 Plan ......ANSWER........Retirement plan used by
public sector workers. Similar to 401(k), have similar tax and
,age 2 of 99
contribution features. Used by some local government workers
as well.
ETNs (Exchange-traded notes) ......ANSWER........Carry issuer risk
tied to the creditworthiness of the institution backing the note.
They typically do not pay interest. Returns are linked to the
performance of an index, currency, or commodity and suitable
for investors looking to speculate on an index.
CD (Certificate of Deposit) ......ANSWER........Issued by banks,
they have a fixed maturity date and interest rate that is paid.
Early withdrawal from a CD will typically result in a penalty.
Short term money-market security.
What is typically associated with an expanding economy?
(expansion). ......ANSWER........Rising interest rates, increased
,age 3 of 99
costs along with lower unemployment. An increasing demand for
goods. Inflation begins to occur as well.
Balance Sheet ......ANSWER........Consists of a company's Assets,
liabilities, and shareholder's equity. Equation: Total Assets= Total
Liabilities + Shareholders Equity.
How long does a customer have to return the options
agreement? ......ANSWER........Within 15 days of the approval of
the account. After these 15 days, the customer is only permitted
to close out existing options positions. A customer may enter
options transactions before the options agreement is returned,
but after those 15 days they cannot.
How are Treasury Bonds quoted? ......ANSWER........Treasury
Bonds are quoted in 32nds of a point, and are then calculated
as a percentage of their par value. Ex. The difference between
, age 4 of 99
98.4 and 98.8 is 4/32. Since one point equals $10, 4/32 or
1/8 equals $1.25.
How do you find the ask price (also known as POP or public
offering price) of a open-end investment company?
......ANSWER........Divide the net asset value by the complement
of the sales charge. NAV/(100%-sales charge)= ask price.
Variable life insurance policy characteristics
......ANSWER........Value of the policy increases or decreases in
relation to the performance of the separate account. Poor
performance could cause the cash value to decline to zero.
Death benefit can increase or decrease, but cannot fall below a
separate amount. Premiums are fixed for the lifetime of the
policy. The expense guarantee clause prevents insurance
companies from raising expense charges for the administration
of the policy.
FINRA SERIES 7 EXAM STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND VERIFIED CORRECT
SOLUTIONS WITH RATIONALES || 100%
GUARANTEED PASS <RECENT VERSION>
What information must be disclosed by a broker dealer in a
research report? ......ANSWER........Any investment banking
compensation paid in past 12 months, anticipated price target,
if analyst is a director of the company, any ownership in the
company held by the analyst or analyst family members.
Subordinated Debenture Bonds ......ANSWER........Unsecured
bonds, secured by the full faith and credit and no specific
collateral of the corporation.
Section 457 Plan ......ANSWER........Retirement plan used by
public sector workers. Similar to 401(k), have similar tax and
,age 2 of 99
contribution features. Used by some local government workers
as well.
ETNs (Exchange-traded notes) ......ANSWER........Carry issuer risk
tied to the creditworthiness of the institution backing the note.
They typically do not pay interest. Returns are linked to the
performance of an index, currency, or commodity and suitable
for investors looking to speculate on an index.
CD (Certificate of Deposit) ......ANSWER........Issued by banks,
they have a fixed maturity date and interest rate that is paid.
Early withdrawal from a CD will typically result in a penalty.
Short term money-market security.
What is typically associated with an expanding economy?
(expansion). ......ANSWER........Rising interest rates, increased
,age 3 of 99
costs along with lower unemployment. An increasing demand for
goods. Inflation begins to occur as well.
Balance Sheet ......ANSWER........Consists of a company's Assets,
liabilities, and shareholder's equity. Equation: Total Assets= Total
Liabilities + Shareholders Equity.
How long does a customer have to return the options
agreement? ......ANSWER........Within 15 days of the approval of
the account. After these 15 days, the customer is only permitted
to close out existing options positions. A customer may enter
options transactions before the options agreement is returned,
but after those 15 days they cannot.
How are Treasury Bonds quoted? ......ANSWER........Treasury
Bonds are quoted in 32nds of a point, and are then calculated
as a percentage of their par value. Ex. The difference between
, age 4 of 99
98.4 and 98.8 is 4/32. Since one point equals $10, 4/32 or
1/8 equals $1.25.
How do you find the ask price (also known as POP or public
offering price) of a open-end investment company?
......ANSWER........Divide the net asset value by the complement
of the sales charge. NAV/(100%-sales charge)= ask price.
Variable life insurance policy characteristics
......ANSWER........Value of the policy increases or decreases in
relation to the performance of the separate account. Poor
performance could cause the cash value to decline to zero.
Death benefit can increase or decrease, but cannot fall below a
separate amount. Premiums are fixed for the lifetime of the
policy. The expense guarantee clause prevents insurance
companies from raising expense charges for the administration
of the policy.
