Series 7 Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

After your result, you can start studying right away: the first questions of the full practice bank are free, with no card required.

Question 1

blue sky laws is best defined as:

state securities laws the SEC rule requiring broker-dealers to act in retail customers' best interest the Federal Reserve rule setting 50% initial margin on securities purchases the rule permitting public resale of restricted and affiliate securities under conditions

Question 2

An investor buys 1 ABC 50 put at 3. At expiration ABC is at 37. What is the profit (loss)?

$100 $1600 $4700 $1000

Question 3

A customer's profile shows she was recently widowed, retired six months early, and now needs monthly income she did not need before. The representative's obligation is to

continue the existing growth strategy because the original profile controls until the account is closed liquidate the account to cash until the customer provides written instructions refer the customer to another firm, since a changed profile ends the relationship update the customer profile to reflect the changed circumstances and review whether the existing recommendations remain suitable

Question 4

A trader learns of an imminent large customer buy order and buys the stock personally first. This is:

arbitrage legitimate hedging front running market making

Question 5

Regulation Best Interest (Reg BI) requires broker-dealers (and their associated persons) to act in a retail customer's best interest.

transfer agents broker-dealers (and their associated persons) issuers investment advisers only

Question 6

ABC stock is at 47. A 50 put with intrinsic value 3 trades at 7. What is its time value?

$400 $700 $1000 $500

Question 7

A customer's entire $300,000 portfolio is invested in the stock of her employer, which she also depends on for her salary. A representative reviewing the account should identify the primary problem as

insufficient income production excessive diversification a failure to use margin concentration risk, because both her income and her savings depend on the same company

Question 8

Buying a stock personally just before entering a large customer buy order for the same stock is front running.

front running market making arbitrage hedging

Question 9

FINRA limits business gifts to $100 per recipient per year.

$250 $500 $100 $25

Question 10

a coupon payment is best defined as:

stock trading below its perceived intrinsic worth stock of a large, established, financially sound company the periodic interest payment made on a bond a dividend paid in cash to shareholders

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

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