101 Ways to Score Higher on Your Series 7 Exam

by Claire Bradley

Overview

It has been estimated that one half of all people taking the Series 7 exam will sit for the test a second time. Taking and passing the Series 7 exam gives you the necessary qualifications to make trades with corporate securities, commodities, and futures. Some people say that this exam is the hardest one they have ever taken. To ensure that this is not the case for you, be sure to read 101 Ways to Score Higher on Your Series 7 Exam.

In this new book, you will learn about and understand the organization of the exam and the computerized format. You will learn how to read questions correctly, how to control your anxiety, and how to approach each section. In addition, you will be presented with a list of resources to help you prepare and dozens of proven strategies, mindsets, and problem solving methods.

101 Ways to Score Higher on Your Series 7 Exam is filled with information about stocks, stock markets, government securities, municipal and corporate bonds, options, indexes, mutual funds, interest funds, interest rates, mortgages, ethics, margin accounts, insider trading, short selling, and dividends, all of which are topics addressed on the exam. Also included is a review of the seven critical functions of a registered representative. You will also find practice questions and ways to avoid making common mistakes.

Instead of panicking and worrying about the Series 7, pick up this book and be confident in your test-taking abilities. Whether you are taking the test for the first time or sitting for the second time, you will learn valuable information and practical tips for passing the exam on the first try and improving your score.

Atlantic Publishing is a small, independent publishing company based in Ocala, Florida. Founded over twenty years ago in the company president’s garage, Atlantic Publishing has grown to become a renowned resource for non-fiction books. Today, over 450 titles are in print covering subjects such as small business, healthy living, management, finance, careers, and real estate. Atlantic Publishing prides itself on producing award winning, high-quality manuals that give readers up-to-date, pertinent information, real-world examples, and case studies with expert advice. Every book has resources, contact information, and web sites of the products or companies discussed.

This Atlantic Publishing eBook was professionally written, edited, fact checked, proofed and designed. The print version of this book is 387 pages and you receive exactly the same content. Over the years our books have won dozens of book awards for content, cover design and interior design including the prestigious Benjamin Franklin award for excellence in publishing. We are proud of the high quality of our books and hope you will enjoy this eBook version.

Product Details

ISBN-13:	9781620230572
Publisher:	Atlantic Publishing Company FL
Publication date:	06/30/2016
Edition description:	Revised
Pages:	288
Sales rank:	830,054
Product dimensions:	5.90(w) x 8.80(h) x 0.90(d)

Table of Contents

Introduction 13

How to Use This Book in Your Studies 15

Purpose of the Series 7 Exam 17

Exam Requirements: Sponsorship and Scheduling 19

Checklist 20

Chapter 1 Studying and Testing Strategies 21

What Kind of Student Are You? 21

Studying Techniques 23

Time Management 26

Quick Studying Tips 28

What to Expect on Testing Day 31

Checklist 35

Case Study: Stephen Merritt 36

Chapter 2 Equity Securities 37

Equity Basics 37

Common Stock 45

Preferred Stock 52

Other Equity Securities 54

Stocks and Your Client 55

Checklist 56

Sample Questions 57

Case Study: Suzy Rhoades 59

Chapter 3 Debt Instruments 61

Corporate Bonds 62

Government Bonds 70

U.S. Government Agency Securities 73

Government-Backed Money Market Instruments 76

Other Money Market Instruments 78

Bonds and Your Client 79

Checklist 80

Sample Questions 81

Case Study: Donald Purtill 83

Chapter 4 Municipal Securities 85

Municipal Securities: Types and Definitions 85

Issuing Process of Municipal Securities 91

Municipal Bonds and Your Client 95

Checklist 96

Sample Questions 96

Case Study: Paul Staib 99

Chapter 5 Packaged Securities 101

Management Investment Companies 102

Unit Investment Trusts (UITs) 110

Face Amount Certificates 110

Annuity Contracts 111

Real Estate Investment Trusts (REITs) 112

Packaged Securities and Your Client 113

Checklist 113

Sample Questions 114

Chapter 6 Direct Participation Programs (DPPs) 117

Basic Characteristics 117

Oil and Gas Programs 120

Real Estate Programs 121

Equipment Leasing Programs 122

DPPs and Your Client 123

Checklist 123

Sample Questions 124

Case Study: James Manktelow 125

Chapter 7 Derivatives 127

Basic Functions 127

Trading Procedures and Officials 130

Call and Put Options 132

Options Strategies 141

Option Types 146

Options and Your Client 148

Checklist 148

Sample Questions 149

Case Study: David Nilssen, CEO 152

Chapter 8 Investment Information: Taxation 153

How Taxes Affect Different Investments 153

Retirement Plans 159

Gifts and Estate Taxes 164

Taxation and Your Client 165

Checklist 166

Sample Questions 167

Chapter 9 Explaining Security Markets and Functions 169

Self-Regulatory Organizations (SROs) 171

Working in the Primary Marketplace 172

The Secondary Marketplace 173

Over-The-Counter (OTC) Market Orders 173

Placing Orders 176

Securities Markets and Your Client 180

Checklist 181

Sample Questions 182

Chapter 10 Economics, Securities, and the Business Cycle 185

Economic Theories 186

Business Cycle 187

The Federal Reserve 191

International Markets 194

Economics and Your Client 194

Checklist 195

Sample Questions 195

Case Study: David Friedman 197

Chapter 11 Analyzing Securities 199

Fundamental Securities Analysis 199

Technical Securities Analysis 204

Portfolio Theory 208

Securities Analysis and Your Client 209

Checklist 210

Sample Questions 210

Case Study: Linda Y. Leitz, CFP, FA 213

Chapter 12 Evaluating Your Customer's Financial Needs 215

What You Need to Create a Customer Profile 216

Portfolio Allocation 220

Investment Strategies 221

Identifying Risk 222

Portfolio Analysis and Your Client 223

Checklist 224

Sample Questions 224

Case Study: Judy McNary 226

Chapter 13 Transactions and Account Management 227

Opening Accounts 227

Orders and Confirmations 232

Account Management 235

Rules of Conduct Regarding Accounts 236

Account Management and Your Client 242

Checklist 242

Sample Questions 243

Case Study: Bob Howard 245

Chapter 14 Special Customer Accounts: Margin 247

The Basics: Long and Short Accounts 248

Opening Accounts 249

Equity and Margin Accounts 250

Special Memorandum Accounts (SMAs) 254

Restrictions on Margin Accounts 257

Minimum Maintenance on Margin Accounts 259

Margin Accounts and Your Client 262

Checklist 262

Sample Questions 263

Chapter 15 You Passed! Now What? 265

Building Your Client Base 265

Keeping Up 270

Chapter 16 Conclusion 273

Appendix A Formulas 275

Syndicate Formulas 276

Stock Formulas 276

Bond Formulas 276

Municipal Debt Formulas 277

Packaged Securities Formulas 277

Options Formulas 278

Securities Analysis Formulas 278

Margin Formulas 280

Appendix B Sample Questions Answer Key 283

Appendix C Full Series 7 Practice Test 287

Practice Test: Part I 288

Practice Test: Part II 320

Appendix D Full Test Answer Key 347

Practice Test: Part I Answers 348

Practice Test: Part II Answers 351

Resources 357

Glossary 359

Bibliography 377

Author Biography 379

Index 381