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Official Practice ProblemFINRA Series 7 Blueprint: Function 3
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Question #s7-prep-series7-ch12-010Function 3Fundamental

Finra

A registered representative sends an email about a new bond offering to 30 retail customers. This communication is classified as:

Correct Choice: B

A retail communication is any written communication distributed to MORE than 25 retail investors within any 30-day period. Since this email went to 30 retail customers, it is a retail communication requiring principal pr

Complete Analysis & Legal Rationale

A retail communication is any written communication distributed to MORE than 25 retail investors within any 30-day period. Since this email went to 30 retail customers, it is a retail communication requiring principal pre-approval.

Distractor Autopsy (Why Other Options Are Traps)

FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:

Choice AIncorrect
Concept Trap

Does not match the governing securities rule described in the explanation.

Choice BCorrect
None

Matches the verified teaching point in the explanation.

Choice CIncorrect
Concept Trap

Does not match the governing securities rule described in the explanation.

Choice DIncorrect
Concept Trap

Does not match the governing securities rule described in the explanation.

Authorities & References:

Official Standard: Content and approval standards for member communications (verify current text).

Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.

🏛️

Regulatory Authority & Citations: Primary Legal Sources

Verified citations governing Question #s7-prep-series7-ch12-010 (FINRA Series 7 Content Outline)

To pass the FINRA Series 7, candidates must understand not just the calculation formulas, but the exact federal securities acts, SRO rulebooks, and statutory frameworks that enforce them. Review the primary authority records below:

FINRAFINRA Rule 2210— Communications with the Public

Content and approval standards for member communications (verify current text).

Read FINRA Official Rule
FINRAFINRA Series 7 Content Outline— General Securities Representative Examination (Series 7) Content Outline

Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.

Read FINRA Official Rule

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