General Securities Representative Qualification Examination (GS)

Here you have the best FINRA Series 7 practice exam questions

  • You have 400 total questions across 80 pages (5 per page)
  • These questions were last updated on April 7, 2026
  • This site is not affiliated with or endorsed by FINRA.
Question 1 of 400

Which of the following preferred issues is likely to fluctuate most in value?

Answer

Suggested Answer

The suggested answer is C.

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 of 400

Which of the following rights does an ADR holder not have?

Answer

Suggested Answer

The suggested answer is A.

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 of 400

A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of common stock. If it already has six million shares outstanding at the time of the offering.

How many rights will the corporation distribute to its shareholders?

Answer

Suggested Answer

The suggested answer is B.

six million. One right for each outstanding share is distributed.
Question 4 of 400

A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of common stock. If it already has six million shares outstanding at the time of the offering.

What is the subscription price per share?

Answer

Suggested Answer

The suggested answer is D.

$10. There are one million shares divided into the $10 million of new capital.
Question 5 of 400

A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of common stock. If it already has six million shares outstanding at the time of the offering.

What subscription ratio is the corporation establishing for each new share?

Answer

Suggested Answer

The suggested answer is A.

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.

About the FINRA Series 7 Certification Exam

About the Exam

The FINRA Series 7 (General Securities Representative Qualification Examination (GS)) validates your knowledge and skills. Passing demonstrates proficiency and can boost your career prospects in the field.

How to Prepare

Work through all 400 practice questions across 80 pages. Focus on understanding the reasoning behind each answer rather than memorizing responses to be ready for any variation on the real exam.

Why Practice Exams?

Practice exams help you familiarize yourself with the question format, manage your time, and reduce anxiety on the test day. Our Series 7 questions are regularly updated to reflect the latest exam objectives.