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    Series 7 Key Facts

    Uploaded by

    Mohit Verma
    This document provides an overview of key facts and topics covered on the Series 7 exam, including various financial concepts and calculations. It lists over 50 terms, regulations, and ideas important for understanding corporate finance, securities, taxes, and regulations. The document is intended to help students study for the Series 7 exam.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Series 7 Key Facts

    Uploaded by

    Mohit Verma
    381 views2 pages
    This document provides an overview of key facts and topics covered on the Series 7 exam, including various financial concepts and calculations. It lists over 50 terms, regulations, and ideas important for understanding corporate finance, securities, taxes, and regulations. The document is intended to help students study for the Series 7 exam.

    Original Description:

    FINRA SERIES 7 KEY POINTS

    Original Title

    78539459-Series-7-Key-Facts (1)

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    This document provides an overview of key facts and topics covered on the Series 7 exam, including various financial concepts and calculations. It lists over 50 terms, regulations, and ideas important for understanding corporate finance, securities, taxes, and regulations. The document is intended to help students study for the Series 7 exam.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    381 views2 pages

    Series 7 Key Facts

    Uploaded by

    Mohit Verma
    This document provides an overview of key facts and topics covered on the Series 7 exam, including various financial concepts and calculations. It lists over 50 terms, regulations, and ideas important for understanding corporate finance, securities, taxes, and regulations. The document is intended to help students study for the Series 7 exam.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    FREE SERIES 7 KEY FACTS

    We offer an online Series 7 exam prep course that includes over 16 hours of online
    video instruction. Our full pdf study manual and over 1,400 questions are also
    included. Please go to www.testeachersonline.com/series7 for more information.

    Listing the units of a limited partnership on an exchange gives them liquidity.

    Know the difference between a cash flow statement and a P&L regarding a limited partnership

    What is depreciation? (Wearing out of a capital asset - an expense on the P&L)

    Investors in unimproved land are looking for appreciation (limited partnership)

    The 4 main corporate characteristics that DPPs try to avoid are:


    continuous life
    free transferability

    limited liability
    centralized management

    Of these, centralized management is the hardest to avoid.

    Understand corporate financial statements, including the capitalization, how to figure the % of
    preferred stock in the capital structure, and how to calculate working capital.

    On a 3-for-2 stock split, how many new shares would be issued? (If you had 100 shares, 50 new
    shares would be issued, for a total of 150)

    Define treasury stock. (Issued, but repurchased by corporation - does not pay dividends or vote)

    Know how to calculate a mutual funds expense ratio. (Annual expenses/average annual assets)

    When mutual fund shares are exchanged for new shares within the same family of funds, what is
    the tax implication, if any? (Taxable in the year of exchange)

    Know the $3,000 capital loss deduction rule and netting rules.

    Know how conversion of preferred stock and bonds into common stock works. (Conversion
    ratio and parity)

    Stockholders must approve what? Stock dividend? Cash dividend? Rights offering? Stock
    split? (Stock split is the answer)

    When preferred stock or bonds are called, what happens to market value? (Comes down to the
    call price)

    Know how to quote in basis points versus coupon rates.

    Does the U.S. government issue any callable securities? (Yes, some treasury bonds are callable)

    Testeachers www.testeachersonline.com/series7

    Which government security does NOT pay interest semiannually? (T-bills)

    What is a GNMA pass-through and how does it work? (Monthly pass-through of principal and
    interest)

    Which government agencies are actually private corporations? (FNMA & Freddie Mac)

    What is accretion on a muni bond? (Adjusting basis up on a discount bond over time)

    Is a muni exempt from federal tax when sold in the secondary market? (No, capital gain is
    taxable, only interest is federal tax-free)

    What does a beta factor of 1 mean? (Moves with the market exactly)

    Know the difference between technical analysis and fundamental analysis.

    What does market sentiment mean?

    Common stock is typically considered to be a hedge against inflation.

    In a deflationary economy, what will bond prices do? (As interest rates go down, bond prices
    increase)

    Understand the money supply: M1, M2, M3, etc.

    Understand joint accounts, tenants in common, joint tenants with right of survivorship.

    What does the R/R have to do when a client dies? (Cancel open orders, freeze account, note
    "deceased" on new account form, await legal docs)

    Understand suitability requirements and customers' objectives.

    What is a red herring? (Preliminary prospectus)

    What does the Securities Exchange Act of 1934 regulate? (SIMMERS PAN acronym)
    S - SEC created
    I - Insider trading
    M - Margin
    M - Manipulation
    E - Exchanges

    R - Registration of B/Ds
    S - Short-sale rule
    P - Proxies
    A - Annual reports
    N - Net capital rule

    Understand SEC Rule 144 and its implications. (Resale of restricted and insider stock)

    What is SEC Rule 147 regarding intrastate offerings?

    What is a nonexempt security? (One that has to be registered with the SEC)

    Testeachers www.testeachersonline.com/series7

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