Series 7 Exam For Dummies

Your no–nonsense guide to acing the Series 7 exam Unlike many standardized tests, the Series 7 exam is harder than it seems. Luckily, there′s Series 7 Exam For Dummies — the trusted guide that shows you how to think like a financial advisor and the test designers. Rather than bogging you down with textbook theory and explanations, this guide cuts to the chase, covering only what′s on the test, offering formulas, tips, and basic info you need to study. Let′s bond — get a grip on the securities (stocks and bonds) that form the foundation of an investor′s portfolio Investments with a twist — understand the many strategies for buying and selling securities, like margin accounts, limited partnerships, and options Know your role — discover the stockbroker′s role in scrutinizing a customer′s account, monitoring market conditions, and making appropriate recommendations that meet the customer′s individual investment goals Practice makes perfect — take a two–part practice exam containing 125 questions in each part (to simulate both three–hour portions of the actual Series 7 exam), complete with answers and explanations Open the book and find: An introduction to the Series 7 exam Ways to develop and stick to a study plan What to expect on exam day Plain–English explanations of everything you′ll encounter on the exam Ten common traps to avoid A practice test that simulates the actual Series 7 exam Helpful guidance on how to start your career off right Learn to: Get a handle on material specific to the latest edition of the exam Understand the formulas and information you need to know Ace the exam and start your career

Introduction 1 Part I: Gearing Up for the Series 7 Exam 5 Chapter 1: So You Want to Sell Securities: Introducing the Series 7 Exam 7 Chapter 2: Preparing for the Series 7 Exam 17 Chapter 3: Examining and Mastering Question Types 29 Chapter 4: Surviving Test Day 41 Part II: Mastering Basic Security Investments 47 Chapter 5: Underwriting Securities 49 Chapter 6: Corporate Ownership: Equity Securities 61 Chapter 7: Debt Securities: Corporate and U.S. Government Loans 73 Chapter 8: Municipal Bonds:Local Government Securities 93 Part III: Delving Deeper: Security Investments with a Twist 109 Chapter 9: Borrowing Money and Securities: The Long and Short of Margin Accounts 111 Chapter 10: Delivering Diversification with Packaged Securities 127 Chapter 11: Working with Direct Participation Programs 141 Chapter 12: Options: The Right to Buy or Sell at a Fixed Price 151 Part IV: Playing Nicely: Serving Your Customers and Following the Rules 181 Chapter 13: Doing a Little Market Research: Portfolio and Securities Analysis 183 Chapter 14: Going to Market: Orders and Trades 199 Chapter 15: Making Sure the IRS Gets Its Share 213 Chapter 16: No Fooling Around: Rules and Regulations 225 Part V: Putting Your Knowledge to Good Use: A Practice Exam 247 Chapter 17: Bring It On: Practice Exam Part I 249 Chapter 18: Answers and Explanations to Practice Exam Part I 269 Chapter 19: Nothing but Net: Practice Exam Part II 287 Chapter 20: Answers and Explanations to Practice Exam Part II 309 Part VI: The Part of Tens 325 Chapter 21: Ten Series 7 Exam Traps to Avoid 327 Chapter 22: Ten Ways to Start Your Career Off Right 331 Appendix: Memorizing Important Figures and Formulas 335 Index 337

Steven M. Rice is a partner and instructor at the Empire Stockbroker Training Institute, one of the largest and most successful securities training schools in the country.