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FINRA General Securities Representative Examination (GS) Sample Questions:
1. Which of the following is considered a firm quotation in the over-the-counter market?
A) 27.50 workout
B) 27.50 subject
C) both B and C
D) 27.50
2. In the offering of new securities, members of the syndicate are permitted to sell to other dealers less the
reallowance. The amount of the reallowance is determined by:
A) the syndicate manager
B) the SEC
C) the issuing corporation
D) the FINRA
3. The registration requirements of the federal securities acts are intended to protect the public interest by
providing for a prospectus on new issues and its review by the SEC. Which of the following is the true of
this process?
A) It does not imply SEC approval of the issue
B) It guarantees purchasers against an untrue statement of material fact or an omission of material fact
C) It relieves participating underwriters from any further responsibility for checking essential facts before
recommending purchase to the customers
D) It provides the SEC with adequate information on which to base approval for new issues
4. In a securities underwriting a participating firm is said to be liable severally but not jointly. What is this type
of underwriting is called?
A) a best efforts offering
B) an Eastern account
C) an all or none offering
D) a Western account
5. CMOs are sold and priced based upon which of the following:
A) par value
B) stated maturity
C) current yield
D) expected average life
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |






