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Last Updated: Jun 22, 2026

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FINRA General Securities Representative Examination (GS) Sample Questions:

1. Service charges by a FINRA dealer for transfer and safekeeping of customer securities held in street
name:

A) may be levied only if the security has a value of less than $5,000
B) may not be levied under FINRA Conduct Rules
C) may not be levied unless there is no trading in the account for more than six months
D) may be levied only if the charge if fair, reasonable, and non-discriminatory


2. Bubba decides to buy equity securities. Which of the following statements is always true about what
Bubba is buying?

A) they are readily marketable
B) they are not secured by collateral
C) they have a fixed rate of return
D) they have a fixed maturity date


3. Bubba buys a 5% municipal bond maturing in 15 years that is trading at a market price of 85. What is the
yield to maturity using the "rule of thumb" method?

A) 6.49%
B) 5.00%
C) 5.10%
D) 5.88%


4. Bubba buys one XYZ November 65 call at $3 and one XYZ November 65 put at $2. XYZ is trading at $72.
The put expires and the call is closed at its intrinsic value. What is the resulting profit?

A) $200
B) $300
C) $700
D) $500


5. An investor purchasing a corporate bond regular way will have to pay the contracted price plus accrued
interest:

A) up to and including the trade date
B) up to but including the settlement date
C) up to but not including the trade date
D) up to but not including the settlement date


Solutions:

Question # 1
Answer: D
Question # 2
Answer: B
Question # 3
Answer: A
Question # 4
Answer: A
Question # 5
Answer: D

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