FINRA Series 7 — Exam Survival Playbook

General Securities Representative (US) | 125 Questions, 225 minutes (post-SIE combo path)

Must-do topics

Equity & debt products – common/preferred stock, corporate bonds, munis, US Treasuries, convertibles

Options – calls/puts (long/short), basic strategies, breakevens, max gain/loss, covered vs uncovered

Municipal securities – GO vs revenue, tax treatment, suitability, disclosure docs

Packaged products – mutual funds, ETFs, UITs, REITs, variable annuities (structure, fees, suitability)

Trading & order handling – order types, time/price conditions, limit vs market, stop vs stop-limit, best execution

Margin accounts – long vs short margin, Reg T, maintenance requirements (conceptually)

Customer accounts – account types, retirement accounts, account opening documentation, suitability

Industry regs & ethics – communications, disclosures, conflicts, churning, excessive trading, outside business activities

Top traps (avoid)

Treating options as pure math instead of plain English scenarios

Mixing up municipal bond types and when GO vs revenue is more suitable

Ignoring time horizon and risk tolerance in suitability scenarios (“Which recommendation is BEST?”)

Getting lost in margin calculations and burning 8–10 minutes on one question

Over-complicating mutual funds/VA questions instead of focusing on fees, liquidity, and risk

Time split

125 questions, 225 minutes → about 1 minute 45 seconds per question

Practical plan:

Q1–40 → ~60–65 minutes (straightforward product & concept questions)

Q41–90 → ~90 minutes (heavier suitability & scenario questions)

Q91–125 → remaining time + flagged questions

Last-48h checklist

Work 40–60 mixed questions per day (across products, options, suitability)

Redo all of your options summary pages:

long call, short call, long put, short put → risk/reward profile in one sentence each

breakeven logic for single calls/puts and simple spreads

Review:

Mutual funds vs ETFs: pricing, liquidity, tax, fees

Variable annuities: guarantees vs market exposure, key risks

Municipal securities: suitability, typical client profiles

Have a small “suitability matrix” ready: older conservative, younger growth-oriented, high income tax bracket, short-term vs long-term goals

Quick facts / formulas

Option breakevens (single positions):

Call → strike + premium

Put → strike − premium

Maximum loss:

Long options → premium paid

Short uncovered call → theoretically unlimited

Margin idea: borrowed funds magnify gains and losses; suitability is as important as calculation

Municipal bonds: often more suitable for high-income, high-tax-bracket investors seeking tax-advantaged income

Speed tactics

For options:

Step 1: Decide if you’re long/short and call/put

Step 2: Ask, “Do I want the market to go up, down, or stay flat?”

Step 3: Use that to eliminate obviously wrong strategies

For suitability questions:

Underline age, time horizon, tax bracket, risk tolerance, liquidity needs

Remove choices that obviously clash with these (e.g., illiquid LP for someone needing money in 2 years)

For long wordy questions: read the last line (what they actually want) before reading the whole stem

Day-of mini-plan

Pre-exam: 10-minute warm-up with options payoffs and two quick suitability scenarios

During the test:

Don’t fall in love with a calculation; if it doesn’t resolve in ~2 minutes, flag and move on

When in doubt, err on the side of suitability, disclosure, and client interest

Final 10–15 minutes: clear blanks, revisit high-value flagged questions (especially simple options you parked)