FINRA Series 7 Practice Test Questions with Answers

Under SEC rules, the purchaser of Regulation D private placement must complete and sign a(n): accredited investor questionnaire How does restricted stock differ from control stock in a Rule 144 sale? control stock must be held fully paid for a minimum of 6 months prior to sale while restricted stock can be sold immediately The prohibited practice of "spinning" is defined under FINRA rules as an arrangement where a: member firm gives officers of public companies IPO allocations in return for receiving underwriting business from that company Which statement is TRUE about the taxation of dividends, interest and capital gains in the separate account during the accumulation phase? all dividends, interest and capital gains are tax deferred Equity % formula =long market value -- debit balance equity If the NYSE stops trading in a security, the exchange where the listed option for that stock trades will stop trading in those option classes short call spreads are profitable in all of the following circumstances EXCEPT the spread between the premiums widens above the credit received All of the following are considered to be good delivery for 400 share purchase of stock EXCEPT Ten 40 share certificates Which of the following describes a proceeds transaction ? selling stock at the direction of a customer and using the proceeds to buy another stock for that customer During a period when the yield curve is normal short term rates are more volatile than long term rates A counter-cyclical stock would be described by which of the following? A stock price that tends to move in the opposite direction of the market as a whole Which bond recommendation would be the safest for an Indvidual who seeks income that is free from the federal income tax? AA-rated revenue bond that is escrowed at maturity If interest rates fall, issuer most likely will call preferred issues trading at a premium