Series 7 Practice Test

Series 7 Seeking Business for the Broker-Dealer Practice Questions

Seeking Business for the Broker-Dealer makes up 4 of every 50 questions on a Tigertest Series 7 practice test. Here are 10 of the 16 questions on it, each with the answer and the reason.

Updated 2026-11-10 by the Tigertest team. Based on FINRA's Series 7 content outline. Original questions; 50 per test, weighted like the real 125-question exam, 72% to pass.

1. 1. A registered rep wants to send the same prepared market letter to 40 retail customers by email. Under FINRA Rule 2210 this is:

   • A.A public appearance
   • B.A retail communication
   • C.Correspondence
   • D.An institutional communication

   Answer: B. Rule 2210 treats a written message sent to more than 25 retail investors within any 30-calendar-day period as a retail communication. Twenty-five or fewer would be correspondence.

2. 2. Who must approve most retail communications before they are first used?

   • A.FINRA's Advertising Regulation staff
   • B.The firm's outside auditor
   • C.The branch office manager's assistant
   • D.A registered principal

   Answer: D. Rule 2210 requires an appropriately qualified registered principal to approve retail communications before use or filing, with limited exceptions. FINRA reviews filed pieces but does not approve them.

3. 3. A rep cold-calls a prospect who lives in another time zone. Under telemarketing rules, the call must be made:

   • A.Between 8 a.m. and 9 p.m. the prospect's time
   • B.During market hours in New York
   • C.Between 8 a.m. and 9 p.m. the rep's time
   • D.Between 9 a.m. and 5 p.m. the prospect's time

   Answer: A. FINRA Rule 3230 bars outbound telemarketing calls before 8 a.m. or after 9 p.m. at the called person's location. The caller's own clock does not matter.

4. 4. A prospect asks a rep not to call again. How long must the firm honor that request on its own do-not-call list?

   • A.Ninety days
   • B.Eighteen months
   • C.Five years
   • D.One year

   Answer: C. A firm-specific do-not-call request must be honored for five years from when it was made. Eighteen months is the established business relationship window after a transaction.

5. 5. Which call is permitted even though the person is on the national do-not-call registry?

   • A.To a referral given by a friend
   • B.To a former customer gone 3 years
   • C.To a customer who traded 6 months ago
   • D.To a prospect on a purchased list

   Answer: C. An established business relationship exists for 18 months after the customer's last transaction, so the call is allowed. A purchased list or a stale relationship gives no exemption.

6. 6. A rep plans to sell real estate on weekends for a separate company and be paid for it. Before starting, the rep must:

   • A.Give the firm prior written notice
   • B.Notify the state realty board
   • C.Inform customers in writing
   • D.Get prior approval from FINRA

   Answer: A. FINRA Rule 3270 requires prior written notice to the member firm before an outside business activity for compensation. The firm then decides whether to limit or prohibit it.

7. 7. A rep wants to help a friend's startup sell its stock to investors, for a fee, outside the firm. Under Rule 3280 the rep needs:

   • A.Approval from the issuer's lawyer
   • B.Only verbal notice to a manager
   • C.A Series 79 registration first
   • D.Written approval from the firm

   Answer: D. A private securities transaction for compensation needs written notice and the firm's written approval, and the firm must then record and supervise it as its own business.

8. 8. A firm's retail investor relationship summary (Form CRS) must be delivered to a new retail investor:

   • A.Along with the first trade confirmation
   • B.By the first recommendation, account or order
   • C.Within 30 days after the account is opened
   • D.Only if the customer asks for a copy

   Answer: B. Under Regulation Best Interest's companion rule, Form CRS goes to a retail investor before or at the earliest of a recommendation, opening an account or placing an order.

9. 9. A rep posts a general comment about the firm's services on a public social media page. It is generally treated as:

   • A.A private message
   • B.A retail communication
   • C.Correspondence
   • D.Institutional communication

   Answer: B. Static content posted on a public social media site is available to any retail investor, so it is a retail communication. Unscripted posts in an interactive forum are treated like public appearances.

10. 10. A rep is invited to speak about retirement investing at a local library seminar. Under Rule 2210 the talk is:

    • A.An institutional communication
    • B.A research report
    • C.Correspondence
    • D.A public appearance

    Answer: D. Unscripted talks at seminars, forums and interviews are public appearances. Any slides or handouts used at the seminar are retail communications and need principal approval.