Free Practice Questions for the Series 7 Exam

Free Practice Questions for the Series 7 Exam
Published on finra-exam-mastery.com

📝 Sharpen Your Skills with Free Series 7 Practice Questions
The Series 7 exam tests your ability to apply industry knowledge across securities products, trading procedures, customer accounts, suitability, and regulations. Practicing with realistic questions is the best way to strengthen recall, improve pacing, and build confidence.

Here are 10 free sample Series 7 questions with answer explanations.

📘 Question 1
A customer places a market order to buy 100 shares of XYZ stock. The trade is executed at 11:30 AM ET on Monday. When will the trade settle under regular way settlement?

A. Same day
B. T+1
C. T+2
D. T+3

✅ Correct Answer: C
Regular way settlement for corporate stocks is T+2 (trade date plus two business days), so the trade settles on Wednesday.

📘 Question 2
Which of the following investment strategies is most suitable for a conservative investor seeking income and capital preservation?

A. High-yield corporate bonds
B. Growth mutual funds
C. Treasury notes
D. Emerging market ETFs

✅ Correct Answer: C
Treasury notes are low-risk and provide predictable income, making them suitable for conservative investors.

📘 Question 3
Which of the following is not considered a security?

A. Variable annuity
B. Municipal bond
C. Fixed annuity
D. Common stock

✅ Correct Answer: C
A fixed annuity is an insurance product, not a security.

📘 Question 4
Which of the following statements about mutual fund Class A shares is true?

A. They have a back-end load
B. They typically carry 12b-1 fees over time
C. They offer breakpoints on large purchases
D. They are most suitable for short-term investors

✅ Correct Answer: C
Class A shares have a front-end load but offer breakpoints, which reduce the sales charge for larger investments.

📘 Question 5
Under FINRA Rule 2210, which communication type requires principal approval prior to use?

A. Correspondence
B. Institutional communication
C. Retail communication
D. Internal training materials

✅ Correct Answer: C
Retail communications (distributed to more than 25 retail investors in 30 days) require principal approval before use.

📘 Question 6
A customer wants to sell stock they bought two days ago but has not paid for yet. This is a violation of:

A. Regulation T
B. Rule 144
C. SEC Rule 10b-5
D. FINRA Rule 2111

✅ Correct Answer: A
This is a Regulation T violation—selling securities before paying for them is known as freeriding.

📘 Question 7
Which account type requires all owners to sign to make a withdrawal?

A. Individual account
B. Joint tenants in common (JTIC)
C. Joint tenants with rights of survivorship (JTWROS)
D. Custodial account

✅ Correct Answer: C
JTWROS accounts typically require all owners to approve withdrawals.

📘 Question 8
A customer buying a bond at a discount and holding it to maturity will experience:

A. A capital gain
B. A loss
C. Accrued interest
D. Amortization

✅ Correct Answer: A
Buying at a discount and holding to par results in a capital gain at maturity.

📘 Question 9
A customer complains about unauthorized trading. What is the first step the registered representative must take?

A. Contact FINRA
B. Notify their principal or supervisor
C. Send a written apology
D. Close the customer’s account

✅ Correct Answer: B
The rep must immediately notify their principal or compliance officer per firm policy.

📘 Question 10
Which of the following orders is most likely to be executed immediately?

A. Limit order to buy at $48
B. Market order to sell
C. Stop order to buy at $50
D. Stop-limit order to sell at $49

✅ Correct Answer: B
Market orders are executed immediately at the best available price.

🎯 More Practice = Higher Scores
Use questions like these daily to build speed and accuracy. Identify your weak areas and drill until they become strengths.

🔗 Access full-length practice exams, timed quizzes, and breakdowns by topic at finra-exam-mastery.com and get closer to your Series 7 license.