Finra series 7 - Study guides, Class notes & Summaries

FINRA Series 79 Exam 240 Questions with Verified Answers

Registered representatives may be compensated based on which of the following? I Trading commissions paid by the brokerage firm to the representative II Trading commissions paid by the customer to the representative III Salary paid by the brokerage firm to the representative IV Salary paid by the customer to the representative I and III Compensation cannot be paid by the customer to the registered representative. Only the broker-dealer may pay compensation to the registered representati...

As a Treasury security, TIPS are characterized by which of the following statements? Interest payments are the product of a fixed interest rate times the adjusted principal A member may pay continuing commissions to a representative after he or she ends his or her employment with a member under what conditions? The member signs a bona fide contract calling for such payment with a married put, an investor __________________; with a married call, an investor ___________________. buys a stock...

Securities and Exchange Commission (SEC) >responsible for supervision of the capital markets >writes laws that govern the financial markets > Can enforce those laws, even if the broker/dealer or associated person is registered with a self-regulatory authority (SRO). >Governs publicly traded companies as well as industry professionals >The Commission can revoke the registration of a broker/dealer, but it has few punitive powers >SEC refers criminal cases to the judicial sys...

FINRA Series 79 Exam Review 162 Questions with Verified Answers

FINRA: Correspondence Correspondence, which is defined as any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period. Can you purchase securities prior to registration? Settlement? Cannot purchase securities prior to registration (against Securities Act of 1933), but can purchase prior to settlement (when-issued) FINRA: Institutional communication Any written or electronic communication that is distributed...

Securities Act of 1933 Federal legislation requiring the full fair disclosure of all material information about the issuance of new securities. Securities Exchange Act of 1934 Federal legislation that established the Securities and Exchange Commission. The act aims to protect investors by regulating the exchanges, the over-the-counter market, the extension of credit by the Federal Reserve Board, broker/dealers, insider transactions, trading activities, client accounts, and net capital Secu...

Security correct answers an investment that represents either an ownership stake or a debt stake in a company. An investor becomes part owner in a company by buying shares of the company's stock. Debt security correct answers usually acquired by buying a company's bonds Debt investment correct answers a loan to a company in exchange for interest income and the promise to repay the loan at a future maturity date (it does not confer ownership) Balance Sheet Summarizes the Concept: corre...

FINRA SERIES 7 EXAM FULL QUESTIONS AND ANSWERS WITH SOLUTIONS 2025

STRIPS may be attractive to investors for which of the following reasons? A. They offer semi-annual interest payments B. The securities are tax-free until they mature C. They carry almost no reinvestment risk D. They are offered at only a 20 year maturity which is a maturity that is not offered by traditional Treasury securities - Answer- C. They carry almost no reinvestment risk The Alternative Minimum Tax (AMT): A. Adds back in certain "tax preference items" that are deducted for...