How to Calculate Accrued Interest for the Series 7 Exam
When taking the Series 7 exam, you need to be able to calculate the number of days of accrued interest that the buyer owes the seller. Although you can calculate the accrued interest with a few different [more…]
How to Determine the Best Investment on the Series 7 Exam
As you grind your way through Series 7 exam questions, you may be asked to determine the best investment for a particular investor. You need to carefully look at the question for clues to help you choose [more…]
Series 7 Exam: Types of U.S. Government Securities
On the Series 7 exam, you need to know the basic types of U.S. government securities, their initial maturities, and certain characteristics. As you may already know, the U.S. government also issues bonds [more…]
Collateralized Mortgage Obligations Questions on the Series 7 Exam
CMOs, or collateralized mortgage obligations, are annoying little (or big) debt securities backed by pools of mortgages and are covered on the Series 7. What makes matters worse is that you probably won’t [more…]
Series 7 Exam: How to Select the Right Account for Your Clients
Besides knowing a customer’s investment profile, you need a basic understanding of the types of accounts for the Series 7 exam. Investors can open many different types of accounts through a broker-dealer [more…]
How to Analyze General Obligation Bonds on the Series 7 Exam
The Series 7 exam tests your ability to analyze different types of municipal securities and help a customer make a decision that best suits her needs. Because they’re backed by taxes rather than sales [more…]
What You Should Know About Revenue Bonds for the Series 7 Exam
You will need to become familiar with Revenue Bonds for the Series 7 Exam. Unlike tax-backed bonds, revenue bonds are issued to fund municipal facilities that’ll generate enough income to support the bonds [more…]
Municipal Bond and Note Questions on the Series 7 Exam
The Series 7 will expect you to have a good grasp on types of municipal bonds and notes. Along with standard revenue and GO bonds, you’re required to know the specifics of the following types of municipal [more…]
How to Calculate the Numbers in Long Margin Accounts on the Series 7 Exam
The Series 7 asks you to calculate the numbers in a long margin account, which isn’t too difficult if you take it one step at a time. The basic long margin account formula is as follows: [more…]
How to Calculate Short Margin Accounts on the Series 7 Exam
On the Series 7 exam, you may be asked to calculate the numbers in a short margin account. You have to start by setting up the formula correctly. The basic short margin account formula is as follows: [more…]
Special Memorandum Account (SMA) Calculations on the Series 7 Exam
The Series 7 will expect you to know the skinny on SMA’s. A special memorandum account (SMA) is a line of credit that a customer can borrow from his margin account or use to purchase more securities on [more…]
Restricted Accounts Calculations on the Series 7 Exam
Often, securities don’t go in the direction customers hope for and you have to deal with restricted accounts. The Series 7 will expect you to be prepared for both scenarios. When this happens in a margin [more…]
How to Use the Dollar-Cost Averaging Formula on the Series 7 Exam
If an investor is employing the dollar-cost-averagingformula, she is investing the same dollar amount into the same investment periodically. The Series 7 will expect you to be familiar with this formula [more…]
Open-end Funds Calculations on the Series 7 Exam
You need to know two basic formulas to determine the sales charge and public offering price of open-end funds. The Series 7 will expect you to be prepared to use multiple formulas, but fortunately, you [more…]
What You Should Know About Annuities for the Series 7 Exam
Annuities are similar to mutual funds, except annuities are designed to provide supplemental retirement income for investors. The Series 7 exam tests you on the two basic types of annuities: fixed and [more…]
Series 7 Exam: Direct Participation Program Paperwork
For the Series 7, you need to know about certain paperwork that’s specific to limited partnerships. Direct participation programs (DPPs) can raise money to invest in real estate, oil and gas, equipment [more…]
What You Should Know About Partnerships for the Series 7 Exam
Certainly partnerships can be formed to run any sort of business that you can imagine, but the Series 7 exam focuses on the big three: real estate, equipment leasing, and oil and gas. You need to be able [more…]
How to Read an Option on the Series 7 Exam
Options are just another investment vehicle that (hopefully) more-savvy investors can use. To answer Series 7 questions relating to options, you first have to be able to read an option. [more…]
What You Should Know About Options for the Series 7 Exam
All option strategies, when broken down, are made up of simple call and/or put options. The Series 7 exam will expect you to understand the basic differences among these options. [more…]
How to Calculate Buy or Sell Call Options on the Series 7 Exam
The most basic options calculations for the Series 7 involve buying or selling call or put options. Although using the options chart may not be totally necessary for the more basic calculations, working [more…]
How to Calculate Buy or Sell Put Options on the Series 7 Exam
Fortunately, when you’re calculating the buying or selling of put options for the Series 7(which give the holder the right to sell), you use the options chart in the same way but with a slight change. [more…]
How to Calculate Profit or Loss for Investor Trading Options on the Series 7 Exam
On the Series 7, not only do you need to know the difference between opening and closing transactions, but you also have to be able to calculate the profit or loss for an investor trading options. This [more…]
How to Calculate Long Straddles and Combinations on the Series 7 Exam
Be prepared to answer questions for the Series 7 dealing with Long Straddles and Combinations. Straddles are option positions in which the investor buys a call and a put or sells a call and a put on the [more…]
How to Calculate Short Straddles and Combinations for the Series 7 Exam
The Series 7 will expect you to understand short positions. Short positions involve selling a call and a put with the same underlying stock. In straddles, the calls and puts have the same strike price [more…]
How to Determine the Break-Even Point for Spreads on the Series 7 Exam
The Series 7 will have questions that ask you to calculate the break-even point for spreads. The thought process is different for puts and calls, but either way, you begin by finding the difference between [more…]
