Free Series 7 Practice Test

Heads up: these are full-difficulty, exam-level questions — harder than most free Series 7 questions online, on purpose. A low score before studying is normal. Answer all 8 to see your score and a full explanation for each.

Question 1 of 8 · Options

An investor buys 1 XYZ 50 call at 5 and sells 1 XYZ 60 call at 2 (same expiration). Maximum gain and breakeven are:

Question 2 of 8 · Margin

A customer opens a new margin account and buys $3,000 of marginable stock. Under Reg T (50%) and FINRA minimums, the required deposit is:

Question 3 of 8 · Municipal Securities

A municipal bond callable at par in 2 years and maturing in 10 years is trading at a PREMIUM. On the customer confirmation, the dollar price must be computed to:

Question 4 of 8 · Suitability & Reg BI

A rep recommends a 72-year-old client buy a deferred variable annuity inside her traditional IRA, citing tax deferral as the main benefit. The recommendation is questionable chiefly because:

Question 5 of 8 · Debt Securities

A Treasury note is quoted at 98-16. The dollar price per $1,000 of face value is:

Question 6 of 8 · Options

An investor writes an uncovered (naked) call. The maximum potential loss is:

Question 7 of 8 · New Issues

Under FINRA Rule 5130, which person may buy shares of a common stock IPO at the public offering price?

Question 8 of 8 · Taxation

An investor has a $9,000 net long-term capital loss this year and no capital gains. Against ordinary income she may deduct: