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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) dividends, interest, and net gains on sales of securities
B) net income from dividends and interest paid on securities in the fund's portfolio
C) net profits from the investment company operation
D) net gains on sales of portfolio securities
2. Bubba plans to borrow some money and pledge securities as collateral. Which of the following can he not
use as collateral?
A) US treasury notes
B) Series EE bonds
C) US treasury bills
D) US treasury bonds
3. Which of the following pairs of terms are synonyms in connection with most mutual funds?
A) selling price and bid price
B) net asset value and redemption price
C) bid price and management fee
D) net asset value and offering price
4. Bubba owns 100 shares of XYZ at $58. He needs to limit his loss to 5 points or less and will accept a
longer time for the order to be executed, to make sure the loss does not exceed 5 points. Which of the
following orders would be the best recommendation?
A) sell limit order
B) sell stop order
C) buy stop order
D) sell stop-limit order
5. The agreement between the members of a syndicate and the manager is known as the:
A) agreement among underwriters
B) selling agreement
C) standby agreement
D) underwriting agreement
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |







