General Securities Representative Examination (GS) (Series7) Free Practice Test

Question 1

Which of the following does not describe an underwriting procedure?

A. fill or kill

B. best efforts

C. all or none

D. standby

Correct Answer: A

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Question 2

Bubba's pledge to purchase a specified dollar amount of a mutual fund within a specified period of time is called:

A. a promissory note

B. an investment letter

C. a stock power

D. a letter of intent

Correct Answer: D

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Question 3

Which of the following is considered an intangible asset?

A. accounts receivable

B. furniture

C. trademarks

D. marketable securities

Correct Answer: C

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Question 4

After an extended period of backing and filling, a stock moves up sharply through a resistance level on
heavy volume. A technical analyst would likely call this a:

A. buying climax

B. breakout

C. technical rally

D. buy-in

Correct Answer: B

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Question 5

The net investment income of an open-end investment company represents:

A. net profits from the investment company operation

B. net income from dividends and interest paid on securities in the fund's portfolio

C. dividends, interest, and net gains on sales of securities

D. net gains on sales of portfolio securities

Correct Answer: B

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Question 6

Under what circumstances may a registered investment company change its investment objective?

A. after it obtains a new charter from the state secretary

B. after providing notice that is recorded in the Federal Register

C. after SEC approval

D. after approval by a majority vote of the shareholders

Correct Answer: D

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Question 7

Bubba wants to buy 500 shares of an NYSE listed stock at 38.87 but he wants to buy at one time, right
away, or else forget it. What kind of order should the registered representative enter?

A. fill or kill

B. immediate or cancel

C. all or none

D. now or never

Correct Answer: A

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Question 8

Who owns a corporation?

A. the owners of debentures

B. the holders of common stock

C. the holders of common stock and the holders of preferred stock

D. the government

Correct Answer: C

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Question 9

Bubba buys a bond issued at par with a 5% coupon that is convertible into common stock at $40. What
conversion ratio does Bubba determine?

A. 15

B. 30

C. 40

D. 25

Correct Answer: D

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Question 10

If a customer dies, the registered representative is required to:

A. await instructions and necessary papers from the executor of the estate

B. both A and B

C. sell out the account

D. cancel all open (good 'til cancelled) orders

Correct Answer: B

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FINRA General Securities Representative Examination (GS) (Series7) Free Practice Test