Pass the FINRA General Securities Representative Series-7 Questions and answers with ValidTests

immediately. The employer’s contributions may be subject to a vesting schedule, but the employee’s contributions are immediately vested.

all of the above. The gross spread (or “underwriting spread”) depends upon all of these factors.

tax anticipation bill. These obligations pay no interest and their maturity comes after corporate tax payment dates. They are accepted for redemption at face value prior to maturity on corporate tax payment dates to encourage purchase by corporations.

$10. A point is 1% and bonds are priced in $1,000 increments. Multiplying $1,000 by 1% equals $10.

$500. Bubba sold short at $58. The call with a strike price of 60, gives him the right to buy back the stock at $60. If the stock rises, the call can be used to limit the loss to 2 points. Bubba can lose $200 on the stock. Bubba also paid a $300 premium. Loss potential is $500.

a dealer. When a firm does business directly with a customer, it is acting as a dealer. When it represents a customer, it is acting as a broker.

the company files regular financial data with the SEC. Rule 144 transactions may use either agency or principal methods.

six months after the date of death. A second evaluation is made six months from the date of death. The estate may then use either value in determining estate tax.

the issuing municipality. The issuer pays for the attorney.

$400,000. In an Eastern account, liability remains open until the entire syndication is closed. Therefore, Big Easy has a liability for 10% of the unsold portion. Since the unsold portion is $6 million, the liability for Big Easy is 10% of that amount, which is $400,000.