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FINRA General Securities Representative Examination (GS) Sample Questions:
1. 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
What is Bubba's excess equity in the account?
A) $18,000
B) $12,000
C) $3,000
D) $0
2. A company may pay a declared dividend in which of the following ways:
A) with stock in a subsidiary company
B) with cash
C) with property
D) all of the above
3. Bubba and his wife, Bubbette, maintain a joint account with a brokerage firm as "joint tenants in common".
Bubbette calls a registered representative at the brokerage and places an order to sell 100 shares of XYZ,
which is long in the account. Which of the following statements is correct about this order?
A) it may be entered only after confirming with Bubba
B) it may be entered
C) it must be approved by an officer of the brokerage prior to entry
D) the order may not be accepted
4. If a municipality has funds available to make a partial call of an issue of outstanding serial bonds, which
bonds should be called first?
A) the shortest maturity
B) the maturity bearing the lowest interest rate
C) the longest maturity
D) the maturity with the largest number of bonds
5. Bubba has been classified as a restricted person according to Rule 2790. He may purchase equity
securities of an IPO except:
A) when the new issue of securities is purchased pursuant to a stand-by agreement
B) to purchase securities to avoid dilution
C) when the new issue of securities is purchased pursuant to a best effort basis
D) when the transaction is exempt by an order of the FINRA
Solutions:
Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |