semplr.

Exams · Certifications · Licensing

FINRA Series 7 General Securities Representative Exam

4. Obtains and Verifies Orders, Processes Transactions / Settlement: practice questions

Our FINRA Series 7 bank has 10 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

Start the free mock exam

Question 1

Under FINRA's Uniform Practice Code, a firm that does not recognize a trade sent for comparison uses a:

  1. Reclamation (reclaim) notice
  2. Buy-in notice
  3. DK (don't know) notice
  4. Due bill
Show the answer

C. DK (don't know) notice — Rule 11210 governs DK procedures for uncompared trades.

Question 2

For a stock split or stock dividend of 25% or more, the ex-date is generally:

  1. Two business days before the record date
  2. The same day as the record date
  3. The declaration date
  4. The first business day after the payable date
Show the answer

D. The first business day after the payable date — For large stock distributions, the ex-date is set after the payable date, so due bills are used for trades between the record and ex-dates (FINRA Rule 11140).

Question 3

A trade for cash settlement settles:

  1. Two business days after the trade
  2. The same day as the trade
  3. On a date agreed later by the parties
  4. One business day after the trade
Show the answer

B. The same day as the trade — Cash trades settle on the trade date, typically allowing a buyer to qualify for a dividend after the ex-date.

More FINRA Series 7 topics