Practice Test Geeks(FINRA) FINRA Exams Practice Test
← All FINRA Flashcard Decks

General Securities Representative Flashcards

7 cards from real FINRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 General Securities Representative flashcards as text

  1. Which of the following is a key difference between a 'Series 7' general securities representative and a 'Series 6' limited representative?

    Answer: Series 7 holders can sell individual equities, options, and corporate bonds; Series 6 is limited to mutual funds and variable products

    The Series 7 license permits sale of a broad range of securities including stocks, bonds, options, and mutual funds, while Series 6 is limited to packaged products like mutual funds and variable annuities.

  2. An investor sells short 100 shares of ABC at $60 per share. The stock subsequently rises to $75. What is the investor's loss?

    Answer: $1,500

    Loss = (selling price − current price) × shares = ($60 − $75) × 100 = −$1,500.

  3. A 'stop order to sell' (stop-loss order) is triggered when:

    Answer: The stock price falls to or below the stop price

    A sell stop order becomes a market order when the stock price falls to or below the designated stop price.

  4. Which of the following best describes the role of the Securities Investor Protection Corporation (SIPC)?

    Answer: It protects customers against the loss of cash and securities if a broker-dealer fails

    SIPC provides limited protection (up to $500,000, including $250,000 for cash) to customers of failed broker-dealers, covering missing securities and cash — not investment losses.

  5. Which of the following transactions is exempt from registration requirements under the Securities Act of 1933?

    Answer: A private placement under Regulation D Rule 506(b) to accredited investors

    Regulation D Rule 506(b) provides an exemption from SEC registration for private placements made to accredited investors (up to 35 sophisticated non-accredited investors also permitted).

  6. A registered representative who engages in excessive trading in a customer's discretionary account to generate commissions is guilty of:

    Answer: Churning

    Churning is the illegal practice of excessively trading a customer's account primarily to generate commissions rather than to benefit the customer.

  7. Under FINRA Rule 4512, member firms are required to maintain customer account records, including updated customer information, for a minimum of:

    Answer: 6 years

    FINRA Rule 4512 requires member firms to maintain customer account records for at least 6 years after the account is closed.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. finra.org — Renewal, score validity, test dates, test delivery, eligibility, fees, exam format, passing score, score release, time limit · verified Oct 2026