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FINRA General Securities Representative Examination (GS) Sample Questions:
1. The net investment income of an open-end investment company represents:
A) net profits from the investment company operation
B) dividends, interest, and net gains on sales of securities
C) net gains on sales of portfolio securities
D) net income from dividends and interest paid on securities in the fund's portfolio
2. The term "secondary market" refers to:
A) private placements
B) issues that banks are not permitted to underwrite
C) trading in issues of low quality
D) trading in outstanding issues
3. The FINRA markup policy applies to:
A) mutual fund sales
B) new issues of corporate securities
C) principal transactions in municipal bonds
D) agency sales OTC
4. The definition of debentures is:
A) a loan secured by real estate
B) collateralized securities
C) a worthless security
D) securities backed by the general credit of the issuers but no specific collateral
5. In considering the fairness of a firm's markup, the FINRA considers:
A) financial condition of the client
B) profitability of the member firm
C) dealer cost for the security
D) amount of the transaction
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |








