• +353-1-416-8900(GMT OFFICE HOURS)
  • 1-800-526-8630(US/CAN TOLL FREE)
  • 1-917-300-0470(EST OFFICE HOURS)
Series 7 Exam Review 2013 + Test Bank: The General Securities Representative Examination Textbook - Product Image

Series 7 Exam Review 2013 + Test Bank: The General Securities Representative Examination Textbook

  • Published: July 2013
  • 576 Pages
  • Securities Institute of America, Inc

The go-to guide to acing the Series 7 Exam!

The General Securities Representative Examination (Series 7) is an entry-level exam that qualifies individuals for registration with all self-regulatory organizations to trade, promote, and sell all forms of general securities.

This intense six-hour test is the must-pass exam for aspiring financial professionals. The exam consists of 250 questions about everything from stocks and stock markets, government securities, municipal and corporate bonds, and options to rules for acquiring customers and handling their accounts, general economic theory, and the rules and regulations of the Securities and Exchange Commission.

The Series 7 Exam Review 2013 arms you with what you need to score high on the test and pass the Series 7 Exam. Designed to let you build and fine-tune your knowledge of all areas covered and guarantee that you're prepared mentally and strategically to take the test, it provides:

- Hundreds of examples
- 542 practice questions covering each subject area in the exam
- Priceless test-taking tips and strategies
- Helpful hints on how to study for the test, manage stress, and stay focused

Series 7 Exam Review 2013 is your ticket to passing the test with flying colors—on the first try—and becoming a registered General Securities Representative.

About The Series 7 Exam
About This Book
About The Test Bank

CHAPTER 1 EQUITY SECURITIES
- What Is a Security?
- Equity = Stock
- Common Stock
- Preferred Stock
- Currency Risks
- Functions of the Custodian Bank Issuing ADRs
- Real Estate Investment Trusts (REITs)
- Pretest

CHAPTER 2 DEBT SECURITIES
- Corporate Bonds
- Types of Bond Issuance
- Bond Certificate
- Bond Pricing
- Corporate Bond Pricing
- Bond Yields
- Bond Maturities
- Types of Corporate Bonds
- Converting Bonds into Common Stock
- Advantages of Issuing Convertible Bonds
- Disadvantages of Issuing Convertible Bonds
- Convertible Bonds and Stock Splits
- The Trust Indenture Act of 1939
- Bond Indenture
- Ratings Considerations
- Retiring Corporate Bonds
- Collateralized Mortgage Obligation (CMO)
- CMOs and Interest Rates
- Types of CMOs
- Private-Label CMOs
- Exchange-Traded Notes (ETNs)
- Pretest

CHAPTER 3 GOVERNMENT SECURITIES
- Series EE Bonds
- Series HH Bonds
- Treasury Bills, Notes, and Bonds
- Treasury Bond and Note Pricing
- Treasury Strips
- Treasury Receipts
- Treasury Inflation-Protected Securities (TIPS)
- Agency Issues
- Government National Mortgage Association (GNMA)
- Federal National Mortgage Association (FNMA)
- Federal Home Loan Mortgage Corporation (FHLMC)
- Federal Farm Credit System (FFCS)
- Pretest

CHAPTER 4 MUNICIPAL SECURITIES
- Municipal Bonds
- Types of Municipal Bonds
- Issuing Municipal Securities
- Selecting an Underwriter
- Creating a Syndicate
- Syndicate Accounts
- Submitting the Syndicate Bid
- Determining the Reoff ering Yield
- Awarding the Issue
- Underwriter’s Compensation
- Order Period
- Allocation Municipal Bond Orders
- Sale Date
- When Issued Confirmations
- Final Confirmations
- Other Types of Municipal Underwritings
- Syndicate Operation and Settlement
- The Official Statement
- Bond Counsel
- The Legal Opinion
- Potential Conflicts of Interest for Municipal Bond Underwriters
- Acting as a Financial Adviser to the Issuer
- Information Obtained While Acting as a Fiduciary
- Acting as a Financial Adviser and an Underwriter
- Municipal Bond Trading
- Bona Fide Quotes
- Informational Quotes
- Out Firm Quotes
- Executing a Customer’s Municipal Bond Orders
- Customer Confirmations
- Yield Disclosure
- Sources of Municipal Bond Market Information
- Recommending Municipal Bonds
- Taxation of Municipal Bonds
- Tax Equivalent Yield
- Purchasing a Municipal Bond Issued in the State in which the Investor Resides
- Triple Tax Free
- Original Issue Discount (OID) and Secondary Market Discounts
- Amortization of a Municipal Bond’s Premium
- Bond Swaps
- Analyzing Municipal Bonds
- Analyzing General Obligation Bonds
- The Debt Statement
- Community Factors
- Sources of Tax Revenue
- Determining Property Taxes
- Important Financial Ratios for General Obligation Bonds
- Analyzing Revenue Bonds
- Types of Revenue Pledge
- Municipal Securities Rulemaking Board (MSRB)
- Pretest

CHAPTER 5 MONEY MARKET
- Money Market Instruments
- Corporate Money Market Instruments
- Government Money Market Instruments
- Municipal Money Market Instruments
- International Money Market Instruments
- Interest Rates
- Pretest

CHAPTER 6 ECONOMIC FUNDAMENTALS
- Gross Domestic Product (GDP)
- Recession
- Depression
- Economic Indicators
- Economic Policy
- Tools of The Federal Reserve Board
- Fiscal Policy
- Consumer Price Index (CPI)
- Inflation/Defl ation
- Real GDP
- International Monetary Considerations
- Pretest

CHAPTER 7 OPTIONS
- Option Classification
- Option Classes
- Option Series
- Bullish vs. Bearish
- Possible Outcomes for an Option
- Characteristics of All Options
- Managing an Option Position
- Buying Calls
- Selling Calls
- Buying Puts
- Selling Puts
- Option Premiums
- At the Money Options
- Out of the Money Options
- Intrinsic Value and Time Value
- Using Options as a Hedge
- Long Stock Long Puts/Married Puts
- Long Stock Short Calls/Covered Calls
- Maximum Gain Long Stock Short Calls
- Maximum Loss Long Stock Short Calls
- Short Stock Long Calls
- Maximum Gain Short Stock Long Calls
- Maximum Loss Short Stock Long Call
- Short Stock Short Puts
- Maximum Gain Short Stock Short Puts
- Maximum Loss Short Stock Short Puts
- Multiple Option Positions and Strategies
- Long Straddles
- Short Straddles
- Spreads
- Combinations
- Using a T Chart to Evaluate Option Positions
- Index Options
- Interest Rate Options
- Price-Based Options
- Rate-Based Options
- Foreign Currency Options
- The Option Clearing Corporation
- The Options Markets
- The Chicago Board Option Exchange
- Opening and Closing Option Prices
- Order Execution
- Expiration and Exercise
- American vs. European Exercise
- Position and Exercise Limits
- Stock Splits and Stock dividends
- Taxation of Options
- Closing an Option Position
- Exercising a Call
- Exercising a Put
- Protective Puts
- Covered Calls
- Option Compliance
- Option Agreement
- Pretest

CHAPTER 8 MUTUAL FUNDS
- Investment Company Philosophy
- Types of Investment Companies
- Open-End vs. Closed-End Funds
- Diversified vs. Nondiversifi ed
- Investment Company Registration
- Investment Company Components
- Mutual Fund Distribution
- Selling Group Member
- Distribution of No-Load Mutual Fund Shares
- Distribution of Mutual Fund Shares
- Mutual Fund Prospectus
- Characteristics of Open-End Mutual Fund Shares
- Mutual Fund Investment Objectives
- Other Types of Funds
- Bond Funds
- Valuing Mutual Fund Shares
- Changes in the NAV
- Sales Charges
- Calculating a Mutual Fund’s Sales Charge Percentage
- Finding the Public Offering Price
- Sales Charge Reductions
- Breakpoint Schedule
- Letter of Intent
- Backdating a Letter of Intent
- Breakpoint Sales
- Rights of Accumulation
- Automatic Reinvestment of Distributions
- Other Mutual Fund Features
- Cost Base of Multiple Purchases
- Purchasing Mutual Fund Shares
- Sales Charges
- 45-Day Free Look
- Withdrawal Plans
- Pretest

CHAPTER 9 VARIABLE ANNUITIES
- Annuities
- Equity Indexed Annuity
- Annuity Purchase Options
- Accumulation Units
- Annuity Units
- Annuity Payout Options
- Factors Affecting the Size of the Annuity Payment
- The Assumed Interest Rate (AIR)
- Taxation
- Types of Withdrawals
- Annuitizing the Contract
- Expenses and Guarantees
- Other Charges
- Pretest

CHAPTER 10 ISSUING CORPORATE SECURITIES
- The Securities Act of 1933
- The Prospectus
- The Final Prospectus
- Prospectus to Be Provided to Aftermarket Purchasers
- SEC Disclaimer
- Misrepresentations
- Tombstone Ads
- Free Riding and Withholding/FINRA Rule 5130
- Underwriting Corporate Securities
- Types of Underwriting Commitments
- Types of Off erings
- Awarding the Issue
- The Underwiting Syndicate
- Selling Group
- Underwriter’s Compensation
- Private Placements/Regulation D Off erings
- Rule 144
- Regulation A Offerings
- Rule 145
- Rule 147 Intrastate Offering
- Pretest

CHAPTER 11 TRADING SECURITIES
- Types of Orders
- The Exchanges
- Priority of Exchange Orders
- The Role of The Specialist/DMM
- The Specialist/DMM Acting as a Principal
- The Specialist/DMM Acting as an Agent
- Crossing Stock
- Do Not Reduce (DNR)
- Adjustments for Stock Splits
- Stopping Stock
- Commission House Broker
- Two-Dollar Broker
- Registered Traders
- Super Display Book (SDBK)
- Short Sales
- Rule 200 Definitions and Order Marking
- Rule 203 Security Borrowing and Delivery Requirements
- Threshold Securities
- Listing Requirements for the NYSE
- Over the Counter/Nasdaq
- Market Makers
- Nasdaq Subscription Levels
- Nasdaq Quotes
- Nominal Nasdaq Quotes
- Automated Confi rmation System (ACT)/Trade Reporting Facility (TRF)
- Nasdaq Execution Systems
- The Nasdaq Market Center Execution System (NMCES)
- The Nasdaq Opening Cross
- Non-Nasdaq OTCBB
- Pink Sheets
- Third Market
- Fourth Market
- Reading the Consolidated Tape
- Exchange Qualifi ers
- Broker vs. Dealer
- FINRA 5% Markup Policy
- Markups/Markdowns When Acting as a Principal
- Riskless Principal Transactions
- Proceeds Transactions
- The Order Audit Trail System (OATS)
- Trade Reporting and Compliance Engine (TRACE)
- Circuit Breakers
- Arbitrage
- Pretest

CHAPTER 12 CUSTOMER ACCOUNTS
- Holding Securities
- Mailing Instructions
- Types of Accounts
- Commingling Customer’s Pledged Securities
- Wrap Accounts
- Regulation S-P
- Pretest

CHAPTER 13 MARGIN ACCOUNTS
- Regulation of Credit
- Regulation T
- House Rules
- Establishing a Long Position in a Margin Account
- An Increase in the Long Market Value
- Special Memorandum Account (SMA) Long Margin Account
- A Decrease in the Long Market Value
- Minimum Equity Requirement Long Margin Accounts
- Establishing a Short Position in a Margin Account
- A Decrease in the Short Market Value
- Special Memorandum Account (SMA) Short Margin Account
- An Increase in the Short Market Value
- Minimum Equity Requirement Short Margin Accounts
- Combined Margin Accounts
- Portfolio Margin Accounts
- Margin Accounts

CHAPTER 14 RETIREMENT PLANS
- Individual Plans
- Individual Retirement Accounts (IRAs)
- Traditional IRAs
- Roth IRAs
- Simplified Employee Pension IRA (SEP IRA)
- Educational IRA/Coverdell IRA
- Tax-Sheltered Annuities (TSAs)/Tax-Deferred Accounts (TDAs)
- Corporate Plans
- Rolling Over a Pension Plan
- Employee Retirement Income Security Act of 1974 (ERISA)
- Pretest

CHAPTER 15 BROKERAGE OFFICE PROCEDURE
- Executing an Order
- Customer Confirmations
- Clearly Erroneous Reports
- Execution Errors
- Corporate and Municipal Securities Settlement Options
- RVP/DVP/COD
- When-Issued Securities
- Government Securities Settlement Options
- Accrued Interest
- Calculating Accrued interest
- Accrued Interest for Government Notes and Bonds
- Rules for Good Delivery
- Delivery of Round Lots
- Delivery of Bond Certifi cates
- Rejection of Delivery
- Don’t Know (DK) Procedures
- Fail to Deliver/Fail to Receive
- Due Bills
- Customer Account Statements
- Carrying of Customer Accounts
- Proxies
- Pretest

CHAPTER 16 FUNDAMENTAL AND TECHNICAL ANALYSIS
- Fundamental Analysis
- The Balance Sheet
- Industry Fundamentals
- Technical Analysis
- Market Theories and Indicators
- Efficient Market Theory
- Pretest

CHAPTER 17 DIRECT PARTICIPATION PROGRAMS
- Limited Partnerships
- Structuring and Off ering Limited Partnerships
- Types of Limited Partnerships
- Oil and Gas Sharing Arrangements
- Equipment Leasing Programs
- Tax Reporting for Direct Participation Programs
- Limited Partnership Analysis
- Tax Deductions vs. Tax Credits
- Other Tax Considerations
- Dissolving a Partnership
- Pretest

CHAPTER 18 CUSTOMER RECOMMENDATIONS, PROFESSIONAL CONDUCT, AND TAXATION
- Professional Conduct in the Securities Industry
- Fair Dealings with Customers
- Periodic Payment Plans
- Mutual Fund Current Yield
- Information Obtained from an Issuer
- Disclosure of Client Information
- Borrowing and Lending Money
- Gift Rule
- Outside Employment
- Private Securities Transactions
- Customer Complaints
- Investor Information
- NYSE/FINRA Know Your Customer
- Investment Objectives
- Risk vs. Reward
- Alpha
- Beta
- Tax Structure
- Investment Taxation
- Calculating Gains and Losses
- Cost Base of Multiple Purchases
- Deducting Capital Losses
- Wash Sales
- Taxation of Interest income
- Inherited Securities
- Donating Securities to Charity
- Gift Taxes
- Estate Taxes
- Withholding Tax
- Corporate Dividend Exclusion
- Alternative Minimum Tax (AMT)
- Taxes on Foreign Securities
- Pretest

CHAPTER 19 SECURITIES INDUSTRY RULES AND REGULATIONS
The Securities Exchange Act of 1934
- The Securities and Exchange
- Commission (SEC)
- Extension of Credit
- The National Association of
- Securities Dealers (NASD)
- Becoming a Member of FINRA
- Registration of Agents/Associated Persons
- Disciplinary Actions Against a Registered Representative
- Resignation of a Registered Representative
- Termination for Cause
- Retiring Representatives/Continuing Commissions
- State Registration
- Registration Exemptions
- Persons Ineligible to Register
- Communications with the Public
- FINRA Rule 2210 Communications with the Public
- Broker Dealer Websites
- Blind Recruiting Ads
- Generic Advertising
- Tombstone Ads
- Testimonials
- Free Services
- Misleading Communication with the Public
- Securities Investor Protection Corporation Act of 1970
- Net Capital Requirement
- Customer Coverage
- Fidelity Bond
- The Securities Acts Amendments of 1975
- The Insider Trading & Securities Fraud Enforcement Act of 1988
- Firewall
- The Telephone Consumer Protection Act of 1991
- Exemption from the Telephone Consumer Protection Act of 1991
- The Penny Stock Cold Call Rule
- The Role of the Principal
- Violations and Complaints
- Resolution of Allegations
- Minor Rule Violation
- Code of Arbitration
- The Arbitration Process
- Mediation
- Currency Transactions
- The Patriot Act
- U.S. Accounts
- Foreign Accounts
- Annual Compliance Review
- Business Continuity Plan
- Sarbanes-Oxley Act
- The Uniform Securities Act
- Pretest

ANSWER KEYS
GLOSSARY OF EXAM TERMS
INDEX

Note: Product cover images may vary from those shown

ALSO AVAILABLE

RELATED PRODUCTS

Our Clients

Our clients' logos