Free FINRA Series7 Exam Dumps Questions & Answers

A dealer buys 100 shares of XYZ common, which is an actively traded stock, at 23.50. Three days later,
when XYZ common is quoted at 19.50 - 19.75, he sells the 100 shares to a customer. The basis for the
dealer's markup is:

• A.  5% above cost
• B.  19 7/8
• C.  23 1/2
• D.  10 5/8

Upon opening a new account for a customer, a registered representative should:

• A.  investigate the customer's credit rating
• B.  determine what is suitable for the customer based upon his financial background
• C.  all of the above
• D.  inquire about age

Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of
municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold
but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the
account?

• A.  $1,000,000
• B.  $0
• C.  $600,000
• D.  $400,000

Which of the following is not a practice of a mutual fund custodian?

• A.  disbursing dividends and capital gains to the fund's shareholders
• B.  lending the fund's securities to banks or broker/dealers
• C.  maintaining sales records for the fund's underwriter
• D.  changing shareholder registrations on the fund's records

Assuming all of the following bonds from the same issuer are callable now, which one would most likely
get called first?

• A.  4% maturing 1-15-2012
• B.  4% maturing 1-15-2007
• C.  8% maturing 1-15-2016
• D.  8% maturing 1-15-2007