Memorizing Important Formulas for the Series 7 Exam

Part of the Series 7 Exam For Dummies Cheat Sheet

You can’t bring your notes into the Series 7 exam center, so be sure to stow the following info away in your brain and write it on the scrap paper provided after the test begins:

Determine the outstanding shares

Outstanding shares = issued shares – treasury stock

Long margin account formula

Long market value (LMV) – debit record (DR) = equity (EQ)

Short margin account formula

Short market value (SMV) + equity (EQ) = credit record (CR)

Calculate the time value of an option

Premium (P) = intrinsic value (I) + time value (T)

Balance sheet formula

Assets = liabilities + stockholder’s equity

Calculate working capital

Working capital = current assets – current liabilities

Calculate the time value of an option

Premium (P) = intrinsic value (I) + time value (T)

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Series 7 Exam For Dummies Cheat Sheet

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