Free Finra Series-7 Exam Actual Questions

The questions for Series-7 were last updated On Jun 13, 2025

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Question No. 1

In order to determine the amount of estate tax due, if any, the assets of a decedent's estate are valued as of the date of death. A second evaluation is then made:

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Correct Answer: B

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.


Question No. 2

Convertible bonds have all of the following features except:

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Correct Answer: C

a normally higher yield than non-convertible bonds of the same issuer. Remember that the question says ''except'' for this feature. Convertible bonds normally do NOT have a higher yield than non-convertible bonds of the same issuer. Convertibles usually have a lower yield than non -convertible sisters.


Question No. 3

Bubba buys one XYZ October 80 put and sells one XYZ October 70 put.

What is his position called?

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Correct Answer: B

money spread. Since the strike prices are different, but not the expiration date, this is a money spread (sometimes called a ''price spread'' or a ''vertical spread'').


Question No. 4

The general purpose of the Securities Act of 1933 is to:

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Correct Answer: C

provide for disclosure of information about new securities offerings. The 1933 act is primarily concerned with registration and disclosures relating to new securities.


Question No. 5

Bubba owns a subordinated debenture in a company that is liquidating.

When will he get paid?

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Correct Answer: B

after the bills are paid and the bank is paid, but before the preferred shareholders. As a creditor, Bubba is paid before any of the shareholders. But his position is subordinated to other creditors, like the bank and accounts payable.