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Series-7 Exam Dumps - FINRA General Securities Representative Questions and Answers

Question # 74

Which of the following is an analyst most likely to classify as a defensive issue?

Options:

A.

the securities of a company that airplanes to the military

B.

a stock of a large company

C.

the common stock of a utility company

D.

a corporate bond

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Question # 75

Bubba owns a perpetual warrant to buy one share of Internet Corporation common stock at $30. Internet Corporation stock is trading at 41.50 and is ex-dividend today at $0.75.

What is the market value of Bubba’s warrant?

Options:

A.

5.75

B.

5.62

C.

5.38

D.

cannot be determined from this information

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Question # 76

Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at 47.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the preferred stock is:

Options:

A.

overpriced and will quickly decline

B.

selling at a 4% premium over conversion value

C.

underpriced and should rise quickly

D.

going to be called when the common stock price is $52

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Question # 77

A case of leverage is:

Options:

A.

selling common stock short and buying warrants for the equivalent number of shares followed by subscribing to the shares and covering the short

B.

borrowing at 6% and investing the funds at 10%

C.

buying stock on the NYSE and later selling it the same day on the CBOE

D.

redeeming a convertible bond before maturity

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Question # 78

Bubba is age 54 and has investments in a retirement plan with his former employer valued at $104,500. Bubba withdraws $25,000 to open a retail clothing store.

Which of the following statements is true regarding Bubba’s tax consequences?

Options:

A.

the entire account is terminated and $104,500 is immediately taxable

B.

a penalty of 10% of the withdrawn amount is assessed

C.

a penalty of 10% on all assets in Bubba’s account is assessed

D.

only regular income tax is due on the amount withdrawn

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Question # 79

Bubba Corporation has net income of $4,200,000. It has 100,000 outstanding shares of 8% preferred stock ($100 par value) and 400,000 shares of common stock ($10 par value).

What are the earnings per share of common stock?

Options:

A.

$8.50

B.

$6.00

C.

$4.20

D.

$10.50

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Question # 80

Which of the following securities provides the longest term of option privilege?

Options:

A.

puts

B.

calls

C.

warrants

D.

rights

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Question # 81

Bonds are most often quoted as a percentage of:

Options:

A.

face value

B.

book value

C.

market value

D.

whatever value the broker says

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Question # 82

The Bubba Corporation is offering stock to the public for the first time. The registration statement lists 150,000 shares for sale at $400 per share. The company conducts business in a 100-mile radius that includes towns in two neighboring states.

Which of the following information is not required in the preliminary prospectus for this offering?

Options:

A.

a notice in red ink to the effect that the prospectus has not been approved by the SEC

B.

a section describing how the funds from the sale will be used

C.

a statement of the company’s assets and liabilities

D.

the price at which the issue is offered

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Question # 83

If a mutual fund has invested its assets by allocating about one-third each for bonds, preferred stocks, and common stocks, it is identified as:

Options:

A.

an income fund

B.

a specialized fund

C.

a balanced fund

D.

a unit investment trust fund

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Exam Code: Series-7
Exam Name: Series 7 General Securities Representative Qualification Examination (GS)
Last Update: Apr 19, 2025
Questions: 400
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