Series 7 Exam Practice Questions

Series 7 Practice Exam Questions
Series 7 Practice Questions

Below you will find some free Series 7 Exam practice questions. Remember, since the exam changed in October of 2018, the SIE Exam is a co-requisite, meaning you must take and pass both. Anyway, the Series 7 (Series 7 Top Off) practice questions below will give you an idea of the types of questions you will see when taking the real exam. At the end of the practice test, you’ll find an answer key. Good luck…

10 Series 7 Practice Questions

1) Which of the following would bring the best after tax yield for an investor in the 32% tax bracket?

A. A 6% municipal bond
B. A 7% preferred stock
C. A 7 ¼ % corporate bond
D. A 7 ¼% US government bond

2) A customer would like to open a margin account with a purchase of 100 shares of RST stock @ 34.  How much must the investor deposit into the margin account?

A. $1,500
B. $1,700
C. $2,000
D. $3,400

3) A customer purchases 100 shares of ABC stock @ 52 and sells 1 ABC Oct 55 call for 7.  Excluding commissions, at what price would this customer break even?

A. 45
B. 48
C. 59
D. 62

4) John Public owns 1,000 shares of a computer stock at $50 per share. The company announces a 2 for 1 stock split.  Assuming no change in the price of the stock, what would John’s position be after the split?

A. 500 shares at $100 per share
B. 1,000 shares at $100 per share
C. 2,000 shares at $50 per share
D. 2,000 shares at $25 per share

5) All of the following are part of a CMO EXCEPT:


When taking the Series 7 top off Exam, be aware of key words in the questions like EXCEPT and NOT to help keep you from making careless mistakes.

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6) Arrange the following in order from largest to smallest:
I. underwriting spread
II. re-allowance
III. selling concession

A. II, III, and I
B. III, II, and I
C. I, II, and III
D. I, III, and II

7) Which of the following is a description of the third market?

A. Trading between institutions without using a broker-dealer
B. Trading of outstanding securities
C. Underwriting of new issues
D. Listed securities trading OTC

8) A preliminary prospectus would include all of the following EXCEPT:

A. An explanation of the spending of the funds raised from the offering
B. The public offering price
C. The names of the officers of the company
D. An SEC disclaimer

9) Which of the following exempt securities deals with an offering of $50,000,000 worth of securities or less in a 12-month period?

A. Regulation A
B. Rule 147 offering
C. Regulation D
D. Private Placement

10) Trades of all of the following securities would be confirmed through TRACE if executed OTC EXCEPT:

A. Debentures
B. Commercial Paper
C. Equipment Trusts
D. Collateral Trusts

Answer Key: 1) A 2) C 3) A 4) D 5) C 6) D 7) D 8) B 9) A 10) B

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Above is just a sampling of Series 7 practice questions. When purchasing our Series 7 Course Textbook and Final Exam Book, you will not only get the correct answers, but also detailed explanations. All books were created by Steven M. Rice and Rueben Martinez


Series 7 Course Textbook and Final Exam Book

Series 7 two-book set. Course textbook with chapter exams plus final exam book with 14 practice exams.


Order now and priority shipping is free!

Series 7 TO Exam Outline