Series 7 Exam For Dummies E-Book

Steven M. Rice

• Herausgeber: John Wiley & Sons
• Kategorie: Bildung
• Sprache: Englisch

Seitenzahl: 604

Veröffentlichungsjahr: 2014

Beschreibung

1,001 opportunities to practice for the Series 7 Exam This comprehensive study guide takes you beyond the instruction offered in Series 7 Exam For Dummies, by giving you more practice and review of the major concepts covered in the exam. If you're prepping to take this intense six-hour exam, 1,001 Series 7 Exam Practice Questions For Dummies covers stocks, municipal and corporate bonds, and options--plus rules for acquiring customers and handling accounts and everything else you can expect to encounter on exam day! This books gives you 1,001 practice opportunities to prepare for the Series 7 Exam, each question explained by providing a detailed, step-by-step solution. If you're an aspiring financial professional, you'll find all the practice and helpful guidance you need to succeed!

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1,001 Series 7 Exam Practice Questions For Dummies®

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Library of Congress Control Number: 2014945056

ISBN 978-1-118-88574-1 (pbk); ISBN 978-1-118-89159-9 (ebk); ISBN 978-1-118-89164-3 (ebk);

Manufactured in the United States of America

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1,001 Series 7 Exam Practice Questions For Dummies®

Visit www.dummies.com/cheatsheet/1001series7 to view this book's cheat sheet.

Table of Contents

Introduction

What You’ll Find

Beyond the Book

Where to Go for Additional Help

Part I: The Questions

Chapter 1: Underwriting Securities

The Problems You’ll Work On

What to Watch Out For

1–34 Bringing New Issues to Market

35–44 Distribution of Profits

45–49 Types of Offerings

50–64 Exempt Securities and Transactions

Chapter 2: Equity Securities

The Problems You’ll Work On

What to Watch Out For

65–77 Common Stock

78–89 Stock Splits and Dividends

90–104 Preferred Stock

105–108 American Depositary Receipts

109–118 Rights and Warrants

Chapter 3: Corporate and U.S. Government Debt Securities

The Problems You’ll Work On

What to Watch Out For

119–129 Types of Bonds

130–140 Price and Yield Calculations

141–155 Comparing Bonds

156–164 Convertible Bonds

165–181 U.S. Government Securities

182–189 Money Market Instruments

190–197 Accrued Interest

198–208 CMOs and CDOs

Chapter 4: Municipal Bonds

The Problems You’ll Work On

What to Watch Out For

209–224 GO and Revenue Bonds

225–244 Other Municipal Bonds and Notes

245–259 Tax Treatment of Municipal Bonds

260–272 Primary Market

273–324 Analysis and Recommendations

325–352 Municipal Bond Rules

Chapter 5: Margin Accounts

The Problems You’ll Work On

What to Watch Out For

353–356 Paperwork

357–366 Initial Margin Requirements

367–372 Long Account Calculations

373–375 Short Account Calculations

376–377 Combined Accounts

378–382 Excess Equity

383–386 Restricted Accounts

387–392 Rules

Chapter 6: Packaged Securities

The Problems You’ll Work On

What to Watch Out For

393–415 Types of Funds and Investment Recommendations

416–419 Discounts and Methods of Investing

420–423 Determining the Sales Charge and Public Offering Price

424–434 Taxation and Rules

435–440 Real Estate Investment Trusts

441–456 Fixed and Variable Annuities

Chapter 7: Direct Participation Programs

The Problems You’ll Work On

What to Watch Out For

457– 462 General and Limited Partners

463–467 Partnership Paperwork

468–481 Partnership Taxes

482–496 Checking Out Types of Partnerships

Chapter 8: Options

The Problems You’ll Work On

What to Watch Out For

497–519 Option Basics

520–528 Standard Option Math

529–544 Straddles and Combinations

545–569 Spreads

570–588 Stock and Options

589–599 Multiple Option Contracts

600–604 Splits and Dividends

605–623 Currency, LEAPS, Yield, and Index Options

624–640 Option Markets and Option Rules

Chapter 9: Portfolio and Securities Analysis

The Problems You’ll Work On

What to Watch Out For

641–648 Knowing Your Customer

649–659 Portfolio Management

660–672 Fiscal Policy, Money Supply, and the Fed

673–677 Definitions and Economic Indicators

678–693 Fundamental Analysis

694–704 Types of Issues and Risks

705–715 Technical Analysis

716–720 Indexes and Circuit Breakers

Chapter 10: Orders and Trades

The Problems You’ll Work On

What to Watch Out For

721–727 Securities Markets

728–735 Primary and Secondary Markets

736–741 Broker-Dealer

742–755 Types of Orders

756–762 Short Sales

763–773 Market Maker’s Book

774–780 Consolidated Tape

781–786 Reporting Systems

787–792 Securities Exchange Act of 1934

Chapter 11: Taxes and Retirement Plans

The Problems You’ll Work On

What to Watch Out For

793–798 Tax Categories and Types of Income

799–806 Interest Income and Taxes on Dividends

807–815 Capital Gains and Losses

816–822 Accretion and Amortization

823–829 Wash Sales, Gift, and Estate Taxes

830–848 Qualified and Non-Qualified Plans

849–860 Traditional and Roth IRAs

861–864 Health Savings Accounts

Chapter 12: Rules and Regulations

The Problems You’ll Work On

What to Watch Out For

865–879 SROs and Agent Registration

880–890 The USA Patriot Act and Anti-Money Laundering Rules

891–912 Opening Customer Accounts

913–929 Order Tickets, Trade Confirmations, and Account Statements

930–946 Payment and Delivery

947–952 Complaints and Legal Remedies

953–958 Transferring Accounts

959–982 Other Important Rules

983–993 Violations

994–1001 FDIC and SIPC

Part II: The Answers

Chapter 13: Answers

About the Author

Cheat Sheet

Guide

Table of Contents

Begin Reading

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Introduction

This book is designed for people like you who are getting prepared to tackle the Series 7 exam. Make no mistake, the Series 7 can be a gorilla of an exam if you don’t prepare adequately. It isn’t enough for you to have a good grasp on the material covered on the Series 7; you also need to have completed enough practice questions to go in to take the real deal with confidence.

Tackling test questions is a skill. I have tutored many students who could just about recite a Series 7 book from memory, but when it came down to answering questions, they were lost. The only way to get better is to answer a lot of questions. You need to know how to break questions down, focus on the last sentence in the question, and eliminate wrong answers.

This book is broken down into chapters and sections, but you can jump around to whatever topic you need help with. And although I’ve organized the questions into logical chapters, when you take the real Series 7 exam, the questions are not going to be in chapter order; they will be jumbled. If you want to get a feel for the real exam, you may want to randomly grab 100 questions or so encompassing all the different chapters and subchapters.

This is your book, so feel free to either take each question one by one and check the answer and explanation or complete an entire section before looking at the answers and explanations. Either way you do it, make sure that you give your best effort in answering each question before looking at the answer. Also, keep your eyes from wandering to the answers to questions you haven’t completed yet.

Work hard and give yourself the best opportunity to pass the Series 7 exam on the first (or next) attempt.

What You’ll Find

The 1,001 Series 7 exam practice problems in the book are divided into 12 chapters with several subsections. Each chapter provides an abundance of question types that you’re likely to face when taking the real exam. As on the real exam, some questions will take you a few seconds to answer, and some will take you a couple of minutes.

The last chapter of the book provides the answers and detailed explanations to all the problems. If you get an answer wrong, give it a second attempt before reading the explanation. Eliminating answers that you know are wrong will have a big impact on your score as compared to just “C-ing” your way through (just choosing Choice [C] for every answer you’re not sure of).

Beyond the Book

This product comes with an online Cheat Sheet that helps you increase your odds of performing well on the Series 7 exam. Check out the free Cheat Sheet at www.dummies.com/cheatsheet/1001series7.

Where to Go for Additional Help

I wouldn’t say that any part of the Series 7 is overly difficult, but the exam itself is tough. The problem is that there is so much to remember. Remembering everything and not confusing rules and numbers makes it one of the tougher exams you can take.

In addition to getting help from people who have recently passed the Series 7 exam, Series 7 teachers, or tutors, you can find a variety of questions and study materials online. A simple online search often turns up heaps of information. You can also head to www.dummies.com to see the many articles and books that can help you in your studies.

1,001 Series 7 Exam Practice Questions For Dummies gives you just that — 1,001 practice questions and answers to help you prepare for the Series 7 exam. If you need more in-depth study and direction, check out Series 7 Exam For Dummies, written by yours truly (and published by Wiley). This book provides you with the background you need to master the Series 7 exam.

Part I

The Questions

Visit www.dummies.com for free access to great content online.

In this part …

Make no mistake: Doing well on the Series 7 exam requires a lot of study and practice. Here are the categories of questions you’ll face:

Underwriting securities (Chapter 1)Equity securities (Chapter 2)Corporate and U.S. government debt securities (Chapter 3)Municipal bonds (Chapter 4)Margin accounts (Chapter 5)Packaged securities (Chapter 6)Direct participation programs (Chapter 7)Options (Chapter 8)Portfolio and securities analysis (Chapter 9)Orders and trades (Chapter 10)Taxes and retirement plans (Chapter 11)Rules and regulations (Chapter 12)

Chapter 1

Underwriting Securities

A good place to start is at the beginning. Prior to corporations “going public,” they must register and have a way of distributing their securities. The Series 7 exam tests your ability to understand the registration process, the entities involved in bringing new issues to market, and types of offerings. In addition, you’re expected to know which securities are exempt from Securities and Exchange Commission (SEC) registration.

The Problems You’ll Work On

As you work through this chapter, be sure you can recognize, understand, and, in some cases, calculate the following:

The process involved with bringing new issues to marketWho gets what (distribution of profits)The different types of offeringsExempt securities and transactions

What to Watch Out For

Read the questions and answer choices carefully and make sure that you

Watch out for words that can change the answer you’re looking for, such as EXCEPT, NOT, ALWAYS, and so on.Recognize that there’s a difference between exempt securities and exempt transactions.If you’re not certain of the correct answer, try to eliminate any answers that you can. Doing so may make the difference between passing and failing.

1–34 Bringing New Issues to Market

1. Which of the following types of underwriting agreements specify that any unsold securities are retained by the underwriters?

(A) mini-max

(B) firm commitment

(C) all-or-none (AON)

(D) best efforts

2. Pluto Broker-Dealer is offering an IPO that will not be listed on the NYSE, NASDAQ, or any other exchange. How long after the effective date must Pluto provide a final prospectus to all purchasers?

(A) 20 days

(B) 30 days

(C) 40 days

(D) 90 days

3. The cooling-off period for a new issue lasts approximately how many days?

(A) 20

(B) 30

(C) 40

(D) 60

4. GNU Corporation is planning to issue new shares to the public. GNU has not yet filed a registration statement with the SEC. An underwriter for GNU may do which of the following?

(A) Accept money from investors for payment of the new issue of GNU.

(B) Send a red herring to investors.

(C) Accept indications of interest.

(D) None of the above.

5. Which of the following is NOT a type of bond underwriting?

(A) mini-max

(B) best efforts

(C) standby

(D) AON

6. A tombstone ad would include all of the following names EXCEPT

(A) selling group members

(B) syndicate members

(C) the syndicate manager

(D) the issuer

7. A registered rep may use a preliminary prospectus to

(A) solicit orders from clients to purchase a new issue

(B) show prospective investors that the issue has been approved by the SEC

(C) obtain indications of interest from investors

(D) accept orders and payments from investors for a new issue

8. All of the following are included in the preliminary prospectus EXCEPT

the public offering pricethe financial history of the issuerthe effective date

(A) I only

(B) I and II

(C) II and III

(D) I and III

9. What is the underwriting arrangement that allows an issuer whose stock is already trading publicly to time the sales of an additional issue?