Series – 7 General Securities Representative Certification Exam (Series-7) - Finra

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Sample Series-7 Exam Questions & Explanations

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Question #1 Verified Q&A
Which of the following preferred issues is likely to fluctuate most in value?
A broker preferred
B callable preferred
C cumulative preferred
D convertible preferred
Correct Answer: convertible preferred
Explanation:
convertible preferred. Because of the conversion feature, convertibles are more closely linked to the price of the common stock. In addition, since the dividend rate on convertible preferred is usually lower than other preferred issues, the convertibles are more sensitive to interest rate fluctuations.
Question #2 Verified Q&A
Which of the following rights does an ADR holder not have?
A the right to see financial statements
B the right to vote for your mother-in-law as a board member
C preemptive rights
D the right to transfer ownership
Correct Answer: preemptive rights
Explanation:
preemptive rights. Holders of ADRs do not have preemptive rights, although they have most other rights of shareholders, including the right to vote for board members-even a mother-in-law
Question #3 Verified Q&A
A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares<br />
of common stock. If it already has six million shares outstanding at the time of the offering.<br />
<br />
How many rights will the corporation distribute to its shareholders?
A sixteen million
B one million
C six million
D ten million
Correct Answer: six million
Explanation:
six million. One right for each outstanding share is distributed.
Question #4 Verified Q&A
A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares<br />
of common stock. If it already has six million shares outstanding at the time of the offering.<br />
<br />
What is the subscription price per share?
A $4
B $10
C $6
D $7
Correct Answer: $10
Explanation:
$10. There are one million shares divided into the $10 million of new capital.
Question #5 Verified Q&A
A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares<br />
of common stock. If it already has six million shares outstanding at the time of the offering.<br />
<br />
What subscription ratio is the corporation establishing for each new share?
A 6 rights per share
B 10 rights per share
C 10 million rights per share
D 6 million rights per share
Correct Answer: 6 rights per share
Explanation:
6 rights per share. Each share receives a right and there are six million shares receiving rights to one million new shares. So six rights are required for one share.

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How many questions are in the Finra Series-7 practice exam on ExamsQA?
Our Series-7 (Series – 7 General Securities Representative Certification Exam) practice question bank currently includes 400 verified questions with comprehensive explanations.
Are the Series-7 exam practice questions up to date for 2026?
Yes, all Finra Series-7 practice questions are regularly updated and verified against current exam objectives.
Will the Series-7 practice questions help me pass on my first attempt?
The Series-7 (Series – 7 General Securities Representative Certification Exam) question bank is built to mirror the real exam's format and topics, with detailed explanations for every answer so you understand the reasoning — not just memorize responses.
Is there a free demo available for Series-7 Series – 7 General Securities Representative Certification Exam?
Yes, ExamsQA offers free demo questions for the Series-7 exam so you can test the interface and question quality before purchasing full access.