FINRA General Securities Representative Qualification Examination (GS) (Series-7) Free Practice Test
Question 1
Bubba wants to buy a $4 convertible preferred with that has a $50 par value and is exchangeable for common stock at $47.50. If the preferred stock is trading at 52, what does Bubba calculate as the common stock price in order to be at parity with the preferred?
Correct Answer: A
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Question 2
Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
What is the buying power in Bubba's account?
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
What is the buying power in Bubba's account?
Correct Answer: A
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Question 3
When the market value in a long margin account decreases, the SMA will:
Correct Answer: D
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Question 4
Which of the following rights does an ADR holder not have?
Correct Answer: A
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Question 5
A financial institution requesting a quote on a block of 100 bonds from a dealer in government securities receives a quote of 98.02 bid, 98.06 asked.
What is the dollar amount the institution will receive if the financial institution sells these bonds to the dealer?''
What is the dollar amount the institution will receive if the financial institution sells these bonds to the dealer?''
Correct Answer: D
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Question 6
Bubba buys a municipal bond at 102 and holds it ten years to maturity.
For tax purposes, how is that premium treated?
For tax purposes, how is that premium treated?
Correct Answer: B
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Question 7
Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account.
He may do so by depositing stocks with a market value of:
He may do so by depositing stocks with a market value of:
Correct Answer: A
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Question 8
Which of the following is not in the subscription agreement for a limited partnership offering?
Correct Answer: D
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Question 9
Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
What is Bubba's excess equity in the account?
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
What is Bubba's excess equity in the account?
Correct Answer: C
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Question 10
A provision under which an underwriter can cancel a proposed public offering due to some unforeseen occurrence is known as a:
Correct Answer: C
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