SeriesPrepKit

Series 7: F1: Seeks Business for the Broker-Dealer

Function 1 is 7% of the Series 7 (9 questions): communications with the public, research, the new-issue process and exempt offerings..

Updated 2026-09-23 · 2 sources · By the SeriesPrepKit team
Exam weight
7%
Scored questions
9
Exam
Series 7
Outline
FINRA 2025

Where it sits in the outline

Official outline section: F1: Seeks Business for the Broker-Dealer, 7% of the Series 7 (9 of 125 scored questions), per FINRA - Series 7 Content Outline (2025).

Function 1 is 7% of the Series 7 (9 questions): communications with the public, research, the new-issue process and exempt offerings.

Key concepts

Communications. Retail communications (distributed to more than 25 retail investors within 30 days) generally need principal approval before use; correspondence (25 or fewer) needs review but not pre-approval; institutional communications need written supervisory procedures.

New issues. After filing and before effectiveness (the cooling-off period), a rep may take indications of interest and deliver a preliminary prospectus but may not sell or send marketing materials.

Municipal primary market. Competitive sale: underwriters bid, the best net interest cost wins. Negotiated sale: the issuer picks an underwriter. The official statement is the muni equivalent of a prospectus.

Exempt offerings. Regulation D private placements to accredited investors, Rule 144A resales to QIBs, Regulation A for smaller offerings, and Section 3(a)(11) intrastate offerings.

Worked example

Correspondence vs. retail communication

A rep emails the same market commentary to 20 retail clients on Monday and 10 more on Thursday. Within 30 days it has gone to 30 retail investors, so it is a retail communication, not correspondence, and generally needs principal approval before use.

Common traps

  • An indication of interest is not a binding order.
  • Counting “within any 30-day period” per piece, not per day.

Practice questions on this topic

Series 7 practice questions: Seeks Business for the Broker-Dealer

A registered rep emails the same market commentary to 40 retail customers over two weeks. Under FINRA Rule 2210, this email is classified as:

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Frequently asked questions

How much of the Series 7 is seeks business for the broker-dealer?

Official outline section: F1: Seeks Business for the Broker-Dealer, 7% of the Series 7 (9 of 125 scored questions), per FINRA - Series 7 Content Outline (2025).

Sources

  1. FINRA - Series 7 Content Outline (2025) (accessed 2026-09-23)
  2. FINRA Rule 2210 - Communications with the Public (accessed 2026-09-23)
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