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Official Practice ProblemFINRA Series 7 Blueprint: Function 3
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Question #s7-prep3-s7-q-347Function 3Fundamental

Securities Act 1933

A married couple with income over $300,000 for the prior two years and the current year is:

Correct Choice: B

Accredited investor (income): $200K individual or $300K joint for 2 years. Or $1M net worth excluding home.

Complete Analysis & Legal Rationale

A married couple with joint income exceeding $300,000 for the past two years, with reasonable expectation of the same for the current year, meets the accredited investor definition under Regulation D. Accredited investors can participate in private placements. QIBs require $100 million in securities owned.

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 concept in the explanation.

Choice BCorrect
None

Matches the verified teaching point in the explanation.

Choice CIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Choice DIncorrect
Concept Trap

Does not match the governing concept in the explanation.

Authorities & References:

Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.

🏛️

Regulatory Authority & Citations: Primary Legal Sources

Verified citations governing Question #s7-prep3-s7-q-347 (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 Series 7 Content Outline— General Securities Representative Examination (Series 7) Content Outline

Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.

Read FINRA Official Rule

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