Equity Securities & Stock Markets Flashcards
6 cards from real Series 7 – General Securities Representative Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Equity Securities & Stock Markets flashcards as text
What does it mean when a stock is trading 'ex-rights'?
Answer: The stock is trading without the value of attached subscription rights
When a stock trades ex-rights, buyers no longer receive the subscription rights associated with the shares.
Which of the following describes a 'round lot' in equity trading?
Answer: A standard trading unit of 100 shares
A round lot is the standard trading unit of 100 shares; trades in fewer shares are called odd lots.
What is a 'poison pill' in corporate defense strategy?
Answer: A shareholder rights plan that dilutes the acquirer's stake if a hostile takeover is attempted
A poison pill is a shareholder rights plan that allows existing shareholders to buy more shares at a discount, diluting the hostile acquirer's ownership.
Under FINRA rules, a pattern day trader is defined as one who executes how many day trades within five business days?
Answer: Four or more
FINRA defines a pattern day trader as someone who executes four or more day trades within five business days in a margin account.
What is the 'ask price' in a stock quote?
Answer: The price at which a dealer is willing to sell the security
The ask (or offer) price is the lowest price a seller is willing to accept for a security.
Which type of stock order becomes a market order once a specific price level is reached?
Answer: Stop order
A stop order is triggered when the stock reaches the stop price, at which point it becomes a market order and executes at the best available price.
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
- finra.org — Eligibility, fees, passing score, score validity, test dates, retake policy, score release, exam format, exam information · verified Oct 2026
- prometric.com — Test delivery · verified Oct 2026