Series 7 Equity Securities Practice Questions
F3 3.1–3.3 · Provides information, makes recommendations, transfers assets and keeps records · 91 of 125 scored questions across 6 topics
Ten Series 7 questions on equity securities, untimed, with a worked answer after each one.
Or take the full Series 7 mock examA customer buys American Depositary Receipts representing shares of a Japanese electronics company. Which statement about the investment is accurate?
Equity securities on the Series 7
Equities are part of Function 3, the 91-question core of the exam. Expect stock and preferred features, rights and warrants, ADRs, dividends and corporate actions, and the ratios read from a company’s financial statements.
- Outline
- F3 3.1–3.3: Common and preferred stock, rights, warrants, ADRs, corporate actions, financial statements and taxes on equity
- Share of the exam
- F3 Provides information, makes recommendations, transfers assets and keeps records: 91 of 125 scored questions (73%)
- Our drill
- 10 questions from 35 on this topic, untimed, a worked answer after each; one free attempt, unlimited with a pass
What to know
- Cumulative preferred owes all missed dividends before common holders are paid; convertible preferred can be exchanged for a fixed number of common shares.
- A rights offering lets existing holders buy new shares below the market, usually for a few weeks; warrants are long-term and are often attached to bonds or preferred stock.
- With T+1 settlement the ex-dividend date and the record date are the same business day; buyers on or after the ex-date do not receive the dividend.
- An ADR is a receipt issued by a U.S. depositary bank for foreign shares held in custody abroad; holders face currency risk, and dividends are paid in U.S. dollars.
- Current ratio = current assets ÷ current liabilities; earnings per share = (net income − preferred dividends) ÷ common shares outstanding; price/earnings = price ÷ EPS.
- Qualified dividends and gains on stock held more than one year are taxed at long-term capital gain rates; a wash sale disallows a loss when the same or a substantially identical security (including a call option on it) is bought within 30 days before or after the sale.
Test yourself on equity securities
Ten Series 7 questions on equity securities, untimed, with a worked answer after each one.
Or take the full Series 7 mock examCommon questions
How many equity securities questions are on the Series 7?
Equity questions are part of Function 3 (91 of the 125 scored questions). Our full mock spreads Function 3 across seven topics.
Are these real Series 7 questions?
No. FINRA and NASAA do not release exam questions. These are original practice questions written to the official content outline, with a worked explanation and the rule behind every answer.
More Series 7 topics
Outline and exam facts checked November 2026: FINRA: Series 7 exam · FINRA Series 7 Content Outline · FINRA Regulatory Notice 26-18.
Original independent practice questions written to the published FINRA content outline. Not affiliated with or endorsed by FINRA or NASAA.