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  1. Home
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  3. SERIES 7

FINRA SERIES 7 Exam (page: 4)
FINRA General Securities Representative ination (GS)
Updated on: 25-Dec-2025

Viewing Page 4 of 81
SERIES 7 PDF 400 Questions

Who owns a corporation?

  1. the owners of debentures
  2. the holders of common stock
  3. the holders of common stock and the holders of preferred stock
  4. the government

Answer(s): C

Explanation:

the holders of common stock and the holders of preferred stock. The holders of all classes of stock are the owners. Each stock class has separate privileges, but all represent ownership. Even if the government is an owner, it holds shares of stock.



Which of the following is true of treasury stock?

  1. it has voting rights
  2. it is entitled to receive dividends
  3. it is stock that has not been issued
  4. it is stock that has been reacquired by the issuer

Answer(s): D

Explanation:

it is stock that has been reacquired by the issuer. Treasury stock has no voting rights and is not entitled to receive dividends. The shares have been issued but are no longer outstanding in the market.



Bubba decides to buy equity securities. Which of the following statements is always true about what Bubba is buying?

  1. they are readily marketable
  2. they have a fixed rate of return
  3. they have a fixed maturity date
  4. they are not secured by collateral

Answer(s): D

Explanation:

they are not secured by collateral. Equity is ownership, which has no collateral security…or any other kind of security such as a guaranteed return, maturity, or marketability.



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

  1. puts
  2. calls
  3. warrants
  4. rights

Answer(s): C

Explanation:

warrants. All of the others always have fixed maturity dates. Warrants often have no finite life and, if they do, it is a very long time.



A company may pay a declared dividend in which of the following ways:

  1. with stock in a subsidiary company
  2. with property
  3. with cash
  4. all of the above

Answer(s): D

Explanation:

all of the above. Dividends can be paid in all of these ways. They can also be paid with treasury stock or authorized but unissued stock.



Viewing Page 4 of 81



Share your comments for FINRA SERIES 7 exam with other users:

Karan Patel 8/15/2023 12:51:00 AM

yes, can you please upload the exam?
UNITED STATES