دانلود کتاب Series 7 Exam 2024-2025 For Dummies (+ 6 Practice Tests Online) (For Dummies (Business & Personal Finance))

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Title Page
Copyright Page
Table of Contents
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part 1 Gearing Up for the Series 7 Exam
Chapter 1 Introducing the Series 7 Exam
What Is the Series 7 Exam, Anyway?
Profiling the Series 7 Exam-Taker
One’s Not Enough: Tackling the Series 63 or Series 66
Series 63: Uniform Securities Agent State Law Exam
Series 66: Uniform Combined State Law Exam
Securing Sponsorship and Signing Up
Filling out an application to enroll
It’s a date! Scheduling your exam
Planning ahead for special accommodations
Americans with Disabilities Act (ADA) candidates
English as a second language (ESL) candidates
Just in case: Cancelling as an option
Taking a Peek at the Tested Topics
Understanding the Exam Format and Other Exam Details
Exam basics
Ten additional trial questions
The computerized format and features
Exhibits
Receiving and Evaluating Your Score
You passed! Now what?
So you need a do-over: Retaking the exam
Chapter 2 Preparing for the Series 7 Exam
Courses and Training Materials: Determining the Best Way to Study
Back to school: Attending a prep course
Training school background
Qualifications of the course instructor(s)
Texts, course content, and extra help
The practical details
Selecting prep material to study on your own
Outlining Your Series 7 Study Strategy
Sharpening your skills when you have 8 weeks to prepare
Hitting your stride with 4 weeks till exam day
Getting down to the wire . . . 2 weeks left to study
Feeling extra pressure when you only have 1 week left to study
Managing Your Study Time Wisely
Blocking out some time to study
It’s a plan: Getting into a study routine
Give it a rest: Taking short breaks
Staying focused from day to day
Devoting time to practice tests
Avoiding study groups
Staying in shape
Exploring Study Strategies
Developing Solid Test-Taking Skills
Read the question carefully
Look for phrases that lead to the topic tested
Work with what you have
Don’t obsess; mark for review
Keep track of time
Master the process of elimination
Maintain your concentration
Think carefully before changing your answers
Use the scrap paper wisely
Knowing When You’re Ready
Chapter 3 Examining and Mastering Question Types
Familiarizing Yourself with Question Formats
Working with the straight shooters: The straightforward types
Closed-stem questions
Open-stem questions
Encountering quirky questions with qualifiers
Working with extremes: Most, least, best
Making exceptions: Except or not
Roman hell: Complex multiple choice
Imposing order: Ranking questions
Taking two at a time
A little mystery: Dealing with an unknown number of correct statements
Looking at exhibits: Series 7 diagram questions
Shredding the Questions: Tips and Tricks
Focusing on key information
Answer me this: Picking the correct answer
Picking up clues when you’re virtually clueless: The process of elimination
Stop opposing me: Dealing with opposite answers
Facing Roman numerals: Not as hard as you think
Don’t make the same mistake twice
Chapter 4 Surviving Test Day
Composing Yourself the Day Before
Making the Most of the Morning
Arriving on the Scene
Taking advantage of one last chance to cram
Signing in
Getting seated
Taking the Exam
Getting the Results: Drum Roll Please . . .
Part 2 Mastering Basic Security Investments
Chapter 5 Underwriting Securities: Bringing New Issues to Market
Bringing New Issues to the Market
Starting out: What the issuer does
Registering securities with the SEC
Shelving the issue: Shelf registration
Cooling-off period
Due diligence meeting
Blue skies: Registering with the states
Effective date
Role call: Introducing the team players
Agreement among underwriters
Firm commitment
Best efforts
Selling group agreement
Stabilizing bids
Who gets what: Distributing the profits
Agreeing to sell your share: Western versus Eastern accounts
Getting the skinny on the issue and issuer: The prospectus
Reviewing Exemptions
Exempt securities
Exempt transactions
Intrastate offerings (Rule 147)
Regulation A+ (Reg A+) offerings
Regulation S (Reg S) offerings
Regulation D (Reg D) offerings
Rule 144
Rule 144A
Testing Your Knowledge
Answers and Explanations
Chapter 6 Corporate Ownership: Equity Securities
Beginning with the Basics: Common Stock
Understanding a stockholder’s voting rights
Statutory (regular) voting
Cumulative voting
Categorizing shares corporations can sell
Considering the par value of common stock
Sharing corporate profits through dividends
Cash dividends
Stock dividends
Corporate spin-off
Consolidations
Penny stocks
Compensation
Exempt penny-stock transactions
Getting Preferential Treatment: Preferred Stock
Considering characteristics of preferred stock
Getting familiar with types of preferred stock
Securities with a Twist
Opening national borders: ADRs
Rights: The right to buy new shares at a discount
Using the cum rights formula
Using the ex-rights formula
Warrants: The right to buy stock at a fixed price
Testing Your Knowledge
Answers and Explanations
Chapter 7 Debt Securities: Corporate and U.S. Government Loans
Tackling Bond Terms, Types, and Traits
Remembering bond terminology
Comparing secured and unsecured bonds
Additional bond types
Zero-coupon bond
Eurodollar bond
Sovereign bond
Making Basic Bond Price and Yield Calculations
Finding bond yields
Nominal yield (coupon rate)
Current yield
Yield to maturity (basis)
Yield to call
Yield to worst
Discount yield
Using seesaw calculations for price and yields
Calculating accrued interest
Determining the Best Investment: Comparing Bonds
Considering bond credit ratings
Contrasting callable and put bonds
Popping the top on convertible bonds
Exploring U.S. Government Securities
Understanding the types and characteristics of U.S. government securities
Agency securities
In the tranches: Delving into packaged mortgages (CMOs)
CMO communications
Backed by debt: Collateralized debt obligations (CDOs)
Playing It Safe: Short-Term Loans or Money Market Instruments
Structured Products
Testing Your Knowledge
Answers and Explanations
Chapter 8 Municipal Bonds: Local Government Securities
General Obligation Bonds: Backing Bonds with Taxes
General characteristics of GOs
Analyzing GO bonds
Ascertaining marketability
Dealing with debt
Bringing in taxes, fees, and fines
Bank qualified bonds
Revenue Bonds: Raising Money for Utilities and Such
General characteristics of revenue bonds
Analyzing revenue bonds
The Primary Market: Bringing New Municipal Bonds to Market
Escrow requirements
Call features
Examining Other Types of Municipal Bonds on the Test
Municipal bond diversity of maturities
Specific types of municipal securities
Taxable municipal bonds
Don’t Forget Municipal Notes!
Municipal Fund Securities
Section 529 plans (529 savings plans)
ABLE accounts
Local government investment pools
Municipal fund securities advertisements
Understanding the Taxes on Municipal Bonds
Comparing municipal and corporate bonds equally
Scot-free! Taking a look at triple tax-free municipal bonds
Pricing of municipal securities and other mathematical calculations
YTC on premium bonds
Value of a basis point
Bonds in default
Municipal bond quotations
Interest rate
Following Municipal Bond Rules
Confirmations
Advertising and record keeping
Commissions
“G” even more rules
Gathering More Municipal Bond Info
The bond resolution (indenture)
Legal opinion
Official statement (OS)
The Bond Buyer
Additional info
EMMA
RTRS
Testing Your Knowledge
Answers and Explanations
Part 3 Delving Deeper into Security Investments
Chapter 9 Borrowing Money and Securities: The Long and Short of Margin Accounts
Getting the Paperwork Out of the Way
Introducing Long and Short Margin Accounts
Playing by the Federal Reserve Board’s Rules
Regulation T
Margin call
Opening a Margin Account: The Initial Requirements
Starting long accounts
Opening short accounts
Calculating Debit and Equity in Long Margin Accounts
Long market value . . .
. . . Minus debit balance . . .
. . . Equals equity
Putting it all together
Making Short Work of Calculations in Short Margin Accounts
Short market value . . .
. . . Plus equity . . .
. . . Equals the credit balance
Putting the equation together
Let the Good Times Roll: Handling Excess Equity
SMAs for long margin accounts
Loan value
SMAs for short margin accounts
Playing it SMA/RT: Using buying and shorting power for good
Buying power for pattern day trading accounts
Looking at Limits When the Market Goes the Wrong Way
Checking out restricted accounts
Restricted long margin accounts
Restricted short margin accounts
Keeping up with minimum maintenance
Minimum maintenance on a long account
Minimum maintenance on a short account
Testing Your Knowledge
Answers and Explanations
Chapter 10 Packaged Securities: Open- and Closed-End Funds and Such
Diversifying through Management Investment Companies
Comparing open- and closed-end funds
Open-end (mutual) funds
Closed-end funds
Open and closed: Focusing on their differences
Forward pricing
Systematic withdrawal plans
Regulated investment companies (RIC): Regulated under Subchapter M
Diversified investment company
Keeping your customer’s investment objectives in mind
Types of mutual funds
Volatility ratings
Fund objectives
Fund performance
Life-cycle funds: Understanding the basics
Hedge funds: What are they?
Dealing with discounts and methods of investing
Breakpoints
Letters of intent
Dollar cost averaging
Figuring the sales charge and public offering price of open-end funds
Sales charge percent
Public offering price (POP)
Loads
Expense ratio
Considering Other Investment Company Options
Face-amount certificate companies
Unit investment trusts (UITs)
Exchange-Traded Funds (ETFs)
Reducing Real Estate Risk with REITs
Adding Annuities to a Portfolio
Looking at fixed annuities
Checking out variable annuities
Separate account
Assumed interest rate
Putting money into (and receiving money from) annuities
Fees
Looking at the pay-in phase
Getting the payout
Early withdrawal penalty
Death benefit
Surrender value
Exploring Variable Life and Variable Universal Life Insurance
Variable life
Variable universal life
1035 tax-free exchange
Investment Company Rules
Investment company sales literature
Advertisements by an investment company (section 10)
Investment company rankings in retail communication
Even more rules
Testing Your Knowledge
Answers and Explanations
Chapter 11 Direct Participation Programs: Partnerships
Searching for Identity: What DPPs Are (and Aren’t)
The DPP Characters: General and Limited Partners
Pushing through Partnership Paperwork
Partnership agreement
Certificate of limited partnership
Subscription agreement
Types of DPP Offerings
Private placements
Public offerings
Passive Income and Losses: Looking at Taxes on Partnerships
Evaluating Direct Participation Programs
Types of Partnerships
Real-estate partnership info
Equipment leasing
Oil and gas
Testing Your Knowledge
Answers and Explanations
Chapter 12 Options: The Right to Buy or Sell at a Fixed Price
Brushing Up on Option Basics
Reading an option
Looking at call options: The right to buy
Checking out put options: The right to sell
Getting your money back: Options in-, at-, or out-of-the-money
Paying the premium: The cost of an option
Incorporating Standard Option Math
Buying or selling call options
Buying call options
Selling call options
Buying or selling put options
Buying put options
Selling put options
Trading options: Opening and closing transactions
Putting things back where you found them: Doing opposite transactions
Tricks of the options trade: Calculating gains and losses
Mastering Complex Option Calculations
Long straddles and combinations
Long straddle
Long combination
Short straddles and combinations
Short straddle
Short combination
Break-even points for straddles and combinations
Spreads
Call spread
Put spread
Determining the break-even point for spreads
Understanding different types of spreads
Got it covered: Stock/option contracts
Off the charts: Multiple option contracts
Spending time on LEAPS: Long-term options
Dividends and splits, more or less
Stock dividends
Regular forward splits
Uneven and reverse splits
Nonequity Options
Index options
Premiums of index options
Exercises in cash
Trading hours, settlement, and expiration dates
Yield-based (interest rate) options
Foreign currency options
Contract sizes
Strike prices and premiums
Gaining Additional Option Info
Clearing through the OCC
Getting the go-ahead: Registered options principal
That’s ODD: Options disclosure document
Special statement for uncovered option writers
OAA: Options account agreement
Last trade, last exercise, and expiration of an option
Exercise and assignment
Margin on options
Taxes on options
Closing transactions
Option expiration
Option exercises
Buying stock and buying puts
Some additional option rules
Testing Your Knowledge
Answers and Explanations
Part 4 Taking Care of Your Customers and Playing by the Rules
Chapter 13 Portfolio and Securities Analysis: Examining Companies and the Market
Knowing Your Customer: Portfolio Analysis
Investment objectives
Factors that influence your customer’s investment profile
Money, money, money: Checking out financial information
Money isn’t everything: Considering nonfinancial influences
Asset allocation
Strategic asset allocation
Tactical asset allocation
Modern portfolio theory
Alpha
Beta (beta coefficient)
Capital Asset Pricing Model (CAPM)
Strategizing with portfolio management policies
Knowing Your Securities and Markets: Securities Analysis
Regarding risk
Systematic risk
Nonsystematic risk
Mitigating risk with diversification
Fundamental analysis
Balance sheet components
Balance sheet calculations
Income statement components
Financial statement calculations
Annual reports
Footnotes
Technical analysis
Showing the work: Research reports
Testing Your Knowledge
Answers and Explanations
Chapter 14 Going to Market: Orders and Trades
Shopping at Primary and Secondary Markets
Buying new in the primary market
Buying used in the secondary market
Making the Trade
Auctioning securities at securities exchanges
Negotiating trades over-the-counter
OTC market makers
Non-NASDAQ securities
Consolidated Quotation Service (CQS)
Understanding the Role of a Broker-Dealer
Firm versus subject quotes
Traders
Receiving Orders from Customers
Recommending OTC equity securities
Talking about order types
Market order
Stop order
Limit order
Stop limit order
Handling limit and stop orders
Factoring in order features
Designated Market Maker and the Super Display Book (SDBK)
Adjusting orders for dividends and splits
Cash dividends
Stock dividends
Stock splits
Trade reporting systems
Regulation NMS (National Market System)
Trading halts: NYSE Rule 7.12 - market-wide circuit breakers (MWCB)
Testing Your Knowledge
Answers and Explanations
Chapter 15 Taxes and Retirement Plans: Making Sure the IRS Gets its Share
Everything in Its Place: Checking Out Tax and Income Categories
Touring the tax categories
Looking at types of income
Noting Taxes on Investments
Interest income
Alternative minimum tax
Dividends
Cash dividends
Stock dividends
Dividends from mutual funds
At the sale: Capital gains and losses
Incurring taxes with capital gains
Realized versus unrealized
Cost valuation
Determining the cost basis per share
Net yield after capital gains tax
Offsetting gains with capital losses
The wash sale rule: Adjusting the cost basis when you can’t claim a loss
Return of capital
Cost basis adjustments on bonds: Accretion and amortization
Accretion
Amortization
Presenting Gift and Estate Tax Rules
Gift taxes
Estate taxes
Exploring Retirement Plans
Tax-qualified plans
Employee Retirement Income Security Act (ERISA)
Defined benefit plans
Defined contribution plans
Stock purchase plans and stock option plans
Profit sharing plans
Nonqualified plans
Deferred compensation programs
457(b) plans
IRA types and contribution limits
Traditional IRAs (individual retirement accounts or individual retirement arrangements)
Roth IRAs
Simplified employee pensions (SEP-IRAs)
Transfers and rollovers
Transfer
Rollover
Coverdell Education Savings Accounts (Coverdell ESA)
Testing Your Knowledge
Answers and Explanations
Chapter 16 Rules and Regulations: No Fooling Around
The Market Watchdogs: Securities Regulatory Organizations
The Securities and Exchange Commission
Self-regulatory organizations
Following Protocol When Opening Accounts
Filing the facts on the new account form
Word on the street: Numbered accounts
The Bank Secrecy Act (BSA)
Closing customer accounts
Selecting the appropriate type of account
Account registration types
Single and joint accounts
Trust accounts
Discretionary accounts
Third-party accounts
Section 28(e)
Corporate accounts
Unincorporated associations
Institutional accounts
Partnership accounts
Death of an account holder
Standards and required approvals of public communications
Types of communication
Seminars
Financial exploitation of specified adults
Regulation S-P
Reporting requirements
Outside business activities
Accounts at other broker-dealers and financial institutions
Trading by the Book When the Account Is Open
Filling out an order ticket
Getting the particulars on paper (or in binary form)
Designating unsolicited trades
A trip to the principal’s office: Securing a signature
Checking your calendar: Payment and settlement dates
Don’t know (DK)
Extensions
Confirming a trade
Meeting the requirements for good delivery
Rejection and reclamation
Fail to deliver
Due bills
Book entry
Transfer agent
Following up with account statements
Keeping your dividend dates straight
Handling complaints
Code of procedure (litigation)
Code of arbitration
Mediation
Transferring accounts
Educational communication related to recruitment practices and account transfers
Internal transfers
Committing Other Important Rules to Memory
The Telephone Consumer Protection Act of 1991 (Telephone Act of 1991)
The 5 percent markup policy
Other violations
Regulation FD
Record keeping
Negotiable instruments drawn from a customer’s account
Disclosure of control relationships
Customer protection rule
Networking arrangements
Uniform Practice Code (UPC)
Supervision
Testing Your Knowledge
Answers and Explanations
Part 5 A Couple Practice Exams
Chapter 17 Practice Exam 1
Practice Exam 1 Answer Sheet
Chapter 18 Answers and Explanations to Practice Exam 1
Making the Grade
Answer Key for Practice Exam 1
Chapter 19 Practice Exam 2
Practice Exam Part 2 Answer Sheet
Chapter 20 Answers and Explanations to Practice Exam 2
Knowing the Score
Answer Key for Practice Exam 2
Part 6 The Part of Tens
Chapter 21 Ten Series 7 Exam Traps to Avoid
Easing Up on the Studying
Assuming the Question’s Intent
Reading into the Question
Becoming Distracted When Others Finish
Not Dressing for Comfort
Forgetting to Breathe
Trying to Work Out Equations in Your Head Instead of Writing Them Down
Spending Too Much Time on One Question
Changing Your Answers for the Wrong Reasons
Calculating Your Final Score Prematurely
Chapter 22 Ten Ways to Start Your Career Off Right
Win at the Numbers Game
Be an Apprentice
Do Your Homework
Treat the Minnow like a Whale
Smile When You Dial
When a Security Goes the Wrong Direction, Don’t Be a Stranger
Put In the Hours
Broaden Your Horizons
Pay Yourself First
Set Some Goals: The Brass Ring
Appendix Important Figures and Formulas
Index
EULA