2023 Current Series-7 dumps Preparation through Our Practice Test
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The benefit in Obtaining the FINRA Series 7 Certification Exam
The advantage of the Series 7 license is that it allows you to sell different types of products in securities, with the exception of commodities and futures. Series 7 license is valid for the entire period you work for a FINRA member company or self-regulatory organization (SRO).
Consider if you are working for a mutual fund company as a fund manager. Mutual fund managers buy and sell shares on behalf of subscribers, based on the stated objectives and strategies of each fund they supervise. If you win Series 7 and 66 before you have enough experience to work like a mutual fund manager, enter the door of a mutual fund company as a stock market researcher or analyst, so progress in exceptional performance.
Consider if you are working as a financial advisor for a financial services company. Financial advisors work directly with individual clients in the consumer or corporate segment, rather than grouping funds from many clients such as mutual funds. Financial advisors can be paid commissions based on the different financial products they sell, or they can be paid with a fixed commission based on the dollar amount of the assets they manage. As an action-oriented consultant, look for a position that you pay yourself on a flat rate basis, as this will allow you to earn more money over time by increasing your clients' wealth. Get the Chartered Financial Planner (CFP) designation before working as a financial advisor or find a company willing to sponsor you to take the exam after your arrival on board.
How to study the FINRA Series 7 Certification Exam
There are two main types of resources for preparation of certification exams first there are the study guides and books that are detailed and suitable for building knowledge from ground up then there are video tutorials and lectures that can somehow ease the pain of through study and are comparatively less boring for some candidates yet these demand time and concentration from the learner. Smart Candidates who want to build a solid foundation in all exam topics and related technologies usually combine video lectures with study guides to reap the benefits of both but there is one crucial preparation tool as often overlooked by most candidates the practice exams. Practice exams are built to make students comfortable with the real exam environment. Statistics have shown that most students fail not due to that preparation but due to exam anxiety the fear of the unknown. RealVCE expert team recommends you to prepare some notes on these topics along with it don't forget to practice FINRA Series 7 exam dumps which had been written by our expert team, Both these will help you a lot to clear this exam with good marks.
NEW QUESTION 197
The market theory stating that the small investor is usually wrong is called the:
- A. Dow theory
- B. advance-decline theory
- C. short interest theory
- D. odd-lot theory
Answer: D
Explanation:
Explanation/Reference:
Explanation: The market theory stating that the small investor is usually wrong is called the odd-lot theory.
The concept behind this theory is that when small lot sales are high, it is a good time to buy, as a high ratio of small business sales is a contrary indicator of market direction.
NEW QUESTION 198
A wealth investor gives Bubba discretion to invest $50,000 for him in any way Bubba sees fit. Therefore, Bubba must:
- A. conform to the prudent man requirements in that state
- B. a registered representative with the SEC under the Investment Advisors Act of 1940
- C. furnish written documents of authority to the brokerage firm executing the orders
- D. be registered with the NYSE and FINRA as a representative
Answer: C
Explanation:
Explanation/Reference:
Explanation: furnish written documents of authority to the brokerage firm executing the orders. The wealthy investor has simply given Bubba discretion over the account. The brokerage firm only requires evidence that this authority has been granted to Bubba.
NEW QUESTION 199
A financial institution requesting a quote on a block of 100 bonds from a dealer in government securities receives a quote of 98.02 bid, 98.06 asked.
What is the dollar amount the institution will receive if the financial institution sells these bonds to the dealer?''
- A. $98,750.00
- B. $98,250.00
- C. $98,062.50
- D. $98,187.50
Answer: C
Explanation:
$98,062.50. The financial institution receives the bid price, which is 98 and 2 / 32. Two thirty-seconds is $0.625. The 98 is the percentage of a $1,000 bond. Multiplying 98% by $1,000 results in $980. Add $0.625 to $980 to arrive at $980.625 per bond. But ...there are 100 bonds. So, multiplying $980.625 by 100 equals $98,062.50.
NEW QUESTION 200
In the offering of new securities, members of the syndicate are permitted to sell to other dealers less the reallowance. The amount of the reallowance is determined by:
- A. the SEC
- B. the issuing corporation
- C. the syndicate manager
- D. the FINRA
Answer: C
Explanation:
Explanation/Reference:
Explanation: the syndicate manager. The reallowance as well as the selling concession given to selling group members are determined by the managing underwriters.
NEW QUESTION 201
Under what circumstances may a registered investment company change its investment objective?
- A. after SEC approval
- B. after providing notice that is recorded in the Federal Register
- C. after it obtains a new charter from the state secretary
- D. after approval by a majority vote of the shareholders
Answer: D
Explanation:
after approval by a majority vote of the shareholders. All vital interests of the shareholders are subject to their majority vote.
NEW QUESTION 202
Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time, XYZ stock is at $55. Bubba has no other stock positions.
What is Bubba's maximum possible profit?
- A. $1,000
- B. $600
- C. $500
- D. unlimited
Answer: B
Explanation:
$600. The maximum profit is the difference between strike prices less the debit amount. The debit amount is $4 ($7 - $3). The difference between strike prices is $10 ($60 - $50). Multiply the $6 difference by 100, which is the number of shares on one option.
NEW QUESTION 203
Municipal syndicate allocation procedures are described in which of the following?
- A. underwriting agreement
- B. syndicate account letter
- C. official statement
- D. agreement among the underwriters
Answer: B
Explanation:
syndicate account letter. This letter is sent by the manager of a competitive bid syndicate to the other members. The priority and other procedures, including allocation amounts, are specified in the letter. Members signify acceptance by signing the letter and returning it to the manger.
NEW QUESTION 204
Which of the following is not true about mutual funds and variable annuities?
- A. each is regulated under the Investment Company Act of 1940
- B. the registered representative must have FINRA registration to solicit either one
- C. the payout of each depends on the investment results of the securities owned in the portfolio
- D. the holder of each must pay income taxes on the dividends received each year
Answer: D
Explanation:
Explanation/Reference:
Explanation: the holder of each must pay income taxes on the dividends received each year. Only the holder of mutual fund shares must pay income tax on annual dividends. This is "not" true of annuity owners. The other choices are true statements.
NEW QUESTION 205
Which of the following is not usually an additional function of a mutual fund's custodial bank?
- A. dividend disbursing agent
- B. registrar
- C. investment advisor
- D. transfer agent
Answer: C
Explanation:
investment advisor. The custodial bank is usually also selected for other functions, but not as investment advisor. That assignment is generally performed by a special advisory firm or the mutual fund management company.
NEW QUESTION 206
Under which of the following conditions may a registered representative of a firm that is an underwriter of a new offering of common stock send to a client a copy of the firm's research report on that stock?
- A. under no circumstances
- B. if his firm is not the managing underwriter
- C. if he has permission of his employer
- D. if it is accompanied by a red herring
Answer: A
Explanation:
under no circumstances. The representative may send the red herring but not a research report of his firm.
NEW QUESTION 207
Under which of the following was SIPC established?
- A. Securities Exchange Act of 1934
- B. Securities Investor Protection Act of 1970
- C. Securities Exchange Reform Act of 1975
- D. Securities Act of 1933
Answer: B
Explanation:
Explanation/Reference:
Explanation: Securities Investor Protection Act of 1970. SIPC was established under this act.
NEW QUESTION 208
Assuming that the information contained in a registration statement is complete and accurate, the registration statement becomes effective:
- A. 20 days after receipt by the SEC
- B. only after the SEC specifically clears the issue in writing to the principal underwriter
- C. 30 days after receipt by the SEC
- D. 10 days after receipt by the SEC
Answer: B
Explanation:
only after the SEC specifically clears the issue in writing to the principal underwriter. The registration statement becomes effective when notice is received in writing from the SEC.
NEW QUESTION 209
Feasibility studies and engineering surveys are most necessary prior to which of the following new offerings?
- A. revenue bonds
- B. limited tax bonds
- C. general obligation bonds
- D. corporate debentures
Answer: A
Explanation:
revenue bonds. The security for a revenue bond depends on the revenue produced by the specific facility. Engineering estimates of constructions costs and potential traffic flow are critical.
NEW QUESTION 210
Which of the following oil and gas programs does not directly involve drilling?
- A. income
- B. exploratory
- C. balanced
- D. developmental
Answer: A
Explanation:
income. With an income program, the well is already producing. The risk is associated with the commodity price.
NEW QUESTION 211
A management group may serve an investment company as its:
- A. investment advisor
- B. custodian
- C. underwriter
- D. both A and C
Answer: D
Explanation:
both A and C. The custodian must be independent of the investment company.
NEW QUESTION 212
Bubba buys a municipal bond at a discount and holds it to maturity.
Which of the following is true?
- A. interest is tax exempt, but the capital gain is taxable
- B. interest is taxable as ordinary income
- C. the capital gain is tax exempt
- D. the capital gain is tax exempt, but the interest is taxable as ordinary income
Answer: A
Explanation:
Explanation/Reference:
Explanation: interest is tax exempt, but the capital gain is taxable. This happens because Bubba purchased the bond in the secondary market with a different price than the original issue face amount.
NEW QUESTION 213
A basis point is:
- A. 1.00%
- B. 0.01%
- C. 0.10%
- D. 0.001%
Answer: B
Explanation:
0.01%. A basis point is one-hundredth of a point. Since a point is 1%, a basis point is 0.01%. A bond price change of one basis point is ten cents ($1,000 x 0.01%).
NEW QUESTION 214
Bubba is a registered representative who wishes to buy shares of a new issue his firm is distributing.
Under FINRA Conduct Rules, Bubba may:
- A. do so if he has a history of buying hot issues
- B. do so if his allotment is insubstantial and not disproportionate to public orders
- C. not do so for his own account, buy may purchase shares for his sister's account
- D. not do so under any circumstance
Answer: D
Explanation:
Explanation/Reference:
Explanation: not do so under any circumstance. New issues may not be distributed to Bubba or members of his immediate family.
NEW QUESTION 215
Securities may be sold under SEC rule 144 provided that the following conditions are met:
- A. the company files regular financial data with the SEC
- B. both A and B
- C. they are sold in principal transactions only
- D. they are sold in agency transactions only
Answer: A
Explanation:
Explanation/Reference:
Explanation: the company files regular financial data with the SEC. Rule 144 transactions may use either agency or principal methods.
NEW QUESTION 216
Bubba is buying a treasury bill. The discount he receives results in Bubba's determination of:
- A. face value
- B. rate of return
- C. nominal yield
- D. yield to call
Answer: B
Explanation:
Explanation/Reference:
Explanation: rate of return. Because T-bills pay no interest, Bubba's rate of return is the discount as a percentage of the face value he receives at maturity.
NEW QUESTION 217
Municipal bonds would be least attractive as an investment for which of the following?
- A. the executive officer of an industrial corporation in the highest income tax bracket
- B. an insurance company
- C. a pension fund
- D. a commercial bank
Answer: C
Explanation:
a pension fund. Since the pension fund does not pay income tax, the tax benefits of the municipal bonds are not realized.
NEW QUESTION 218
Bubba's pledge to purchase a specified dollar amount of a mutual fund within a specified period of time is called:
- A. a stock power
- B. an investment letter
- C. a promissory note
- D. a letter of intent
Answer: D
Explanation:
a letter of intent. This accurately describes the definition of a letter of intent.
NEW QUESTION 219
Which of the following preferred issues is likely to fluctuate most in value?
- A. convertible preferred
- B. broker preferred
- C. cumulative preferred
- D. callable preferred
Answer: A
Explanation:
Convertible preferred. Because of the conversion feature, convertibles are more closely linked to the price of the common stock. In addition, since the dividend rate on convertible preferred is usually lower than other preferred issues, the convertibles are more sensitive to interest rate fluctuations.
NEW QUESTION 220
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How much FINRA Series 7 Certification Exam cost
The Series 7 exam is officially known as the general exam of securities representatives. It is a highly regulated exam that must be taken in an official test center. The cost to take the test is at least $ 265, with some areas in charge a little more.
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