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FINRA requires that promotional events clearly disclose they are sponsored by the firm and may involve investment discussions. Misleading claims such as “educational only” when sales are involved (A) or suggesting regulatory endorsement (D) are prohibited. Clients are never obligated to buy (C). Series 7 candidates must recognize rules around seminars, prospecting events, and how they must be conducted fairly, with balanced disclosure of risks and benefits. Advertising, invitations, and handouts must receive principal approval before distribution.

Options accounts require the ODD to be delivered before first trade and a signed agreement within 15 days. Other documents apply to entity accounts.

FINRA requires retail communications to be fair, balanced, and not misleading. Guarantees are prohibited. Testimonials require disclosure. Record retention is mandatory.

Treasuries are backed by the full faith and credit of the U.S. government, making them essentially free of default risk. They pay semiannual interest and are highly liquid. Corporate and high-yield bonds involve credit risk, and common stock does not provide guaranteed income. Series 7 candidates must connect risk tolerance, safety, and objectives to product selection.

Treasury notes provide semiannual interest and are backed by the U.S. government, offering safety and predictable income. High-yield funds (A) carry significant credit risk. Growth funds (C) emphasize appreciation, not income. Non-traded REITs (D) lack liquidity and have high fees. Series 7 candidates must apply suitability principles to retirement clients needing preservation and income.