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FINRA General Securities Representative Examination (GS) Sample Questions:
1. Which of the following is considered a firm quotation in the over-the-counter market?
A) 27.50
B) 27.50 subject
C) both B and C
D) 27.50 workout
2. In what broad category of municipal bonds are "limited tax" bonds placed?
A) new housing authority
B) special tax
C) general obligation
D) revenue
3. Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the
prices listed
1 00 ABC $30
2 00 XYZ $70
2 00 QBB $40
2 00 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
If Bubba wants to buy 100 shares of DUM at $30 per share, how much additional money must be
deposited?
A) $2,000
B) $1,500
C) $0
D) $3,000
4. Bubba is a registered representative who wishes to buy shares of a new issue his firm is distributing.
Under FINRA Conduct Rules, Bubba may:
A) not do so under any circumstance
B) do so if his allotment is insubstantial and not disproportionate to public orders
C) do so if he has a history of buying hot issues
D) not do so for his own account, buy may purchase shares for his sister's account
5. The Bubba Fund is a load mutual fund that offers a reinvestment plan. What does this mean?
A) income, dividend, and capital gain distributions may be automatically used to purchase new shares of
the fund
B) no federal income taxes are paid on dividends and capital gain distributions from the fund
C) holders of fund shares are permitted to regularly purchase additional shares at the bid price
D) purchasers of fund shares must agree to make regular investments over a period of years
Solutions:
Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: A |