Series 7 exam for dummies pdf

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Title: [[FREE] [DOWNLOAD] [READ]] Series 7 Exam For Dummies with Online Practice Tests PDF, Author: arksixowo, Name: [[FREE]. The Series 7 exam qualifies you to hold the title General Securities The Series 7 itself is a computer-based exam given at Prometric and Pearson VUE (Virtual. Table 1- Number of Test Questions on the Series 7 by Major Job Functions. The Series 7 Examination is the General Securities Representative Qualification Examination. NYSE (Application of Tick Tests) .. Qualification Examination is available in pdf format on the Financial Industry Regulatory.

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Editorial Reviews. From the Back Cover. Your no-nonsense guide to acing the Series 7 exam Buy Series 7 Exam For Dummies: Read Kindle Store Reviews - Series 7 Exam FORDUMmIES‰by Steven M. Rice Series 7 Exam FORDUMmIES‰ Series 7 DOWNLOAD PDF Series 7 Exam For Dummies® Published by Wiley Publishing, Inc. River St. Hoboken, NJ www. Book details Author: Steven M. Rice Pages: pages Publisher: John Wiley & Sons Language: English ISBN ISBN Download Free Series 7 Exam For Dummies, with Online Practice Tests [PDF] Complete Click Below Click this link.

Get to Know Us. Regardless of whether you understand and remember best by reading, writing, listening, or a combination of these methods, you have to select the training mode that best suits your needs. Chapter 5: The Series 66 is designed to qualify candidates as both securities agents and investment adviser representatives IARs. The main benefit comes from making the initial recording and letting study material be the last thing you hear before you fall asleep. Paperback Verified Purchase.

Alone, this won't help you pass the 7, but it is a cheap way to score a few extra points. First off this book should be used in accompaniment of either the kaplan or stc study material. Although it covers every area of the finra exam it is only refresher.

The cd offered additional practice exams so if you are getting 90's on your kaplan or stc interactive exams and want to see if you are ready for the exam you can take a shot at two more two part exams before the big day.

I found the material in the book to be accurate and up to date. The most helpful parts of the book were the test taking skills and areas that finra tries to trip you up on. And vital calculations and formulas: Good way to sharpen knowledge of concepts with some useful tips to remember important topics. This was a much needed update from the 1st edition. The practice exams are pretty useful, but some of the irritating curve balls don't mimic what is on the actual exam.

The back of the chapters list out "other important concepts" you should learn without covering them in the book. I have only just started to review this material, but it does seem to be layed out in a simple manner I will keep you posted Kindle Edition Verified Purchase.

Scored an The biggest value here are the tests included in the book, and on the website. Being able to do the options charts they this book recommends is also important.

It's a tad embarrassing to study a "for Dummies" for the Series 7, but it's about ten times more embarrassing to FAIL the test, have to shell out some more money, or in some cases lose you job, because you were too cheap to shell out what, ten bucks, for the book that was THE most helpful in my studying experience.

I purchased this book to get my feet wet before I began studying for the real thing with the company materials. Currently, I'm just beyond the halfway mark. This book does what I thought it would and should do but only that I found myself going back to the beginning of a section trying to get clarity many times without getting it.

Because of the easy reading and the examples along the way, I was able to get over my apprehension of taking the 7. This book was very helpful, but should be used in conjunction with a text book.

It will reintroduce information that is in the text in a friendlier manner. And, the practice exams on the CD and at the back of the book were just as helpful if not more helpful. One person found this helpful. Not good.

Series 7 Exam For Dummies (For Dummies (Career Education))

Now I'm starting to wonder what else is incorrect. See all reviews. Customers who viewed this item also viewed. Series 7 Study Guide: Pass The 7 - What other items do customers buy after viewing this item? There's a problem loading this menu right now. Learn more about Amazon Prime. Get fast, free shipping with Amazon Prime. Back to top. Get to Know Us. Amazon Payment Products. English Choose a language for shopping. Enhanced Typesetting: Page Flip: Not Enabled Word Wise: Not Enabled Lending: Not Enabled Enhanced Typesetting: Enabled Amazon Best Sellers Rank: Amazon Music Stream millions of songs.

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AmazonGlobal Ship Orders Internationally. You can listen to taped material while on the go or in your home. Putting the info in your own words, saying ideas out loud, and listening to the recordings can really help reinforce the concepts. Commercial cards may be confusing and long-winded. Get your affairs in order.

Series 7 Practice Exam

Go to the dentist and get that sore tooth filled, pay your bills, get your flu shot, get your annual checkup, visit your friends and relatives, finish any critical home improvement projects. Basically, clear the decks as best you can so you can concentrate on your studies. The following sections can help you establish a study plan. Blocking out some time to study You have to use your time efficiently, and to accomplish this, you need to grab every spare moment and channel it into study time.

Especially for those of you who continue to work at your full-time job, now may be the time to have a heart-to-heart with your boss to negotiate some extra study time. After all, you need to work this out only for the next six weeks. Can you take vacation time? Will your boss allow you flex time where you agree to work two hours later each day for four days and have the fifth day off? Can you arrange a quiet place at work to study during breaks and lunch time?

Set aside a consistent time to study on a daily basis. If possible, schedule your study time around your internal clock. You never know when extra time to study will present itself, so carry your textbooks or some flash cards with you whenever you leave home. You can read or drill yourself whenever you find some spare time — on the train, waiting in line, and yes, even during your trips to the restroom.

Getting into a study routine Establishing and sticking to a study routine is essential. Therefore, you have to reinforce your knowledge on a daily basis by constantly reviewing and revisiting the old information while learning new material.

Setting up shop: One of my students used to retreat to his car in the driveway after dinner while his wife put their young kids to bed. The exam room, with its small cubicles, places you in proximity with other people who are taking the exam at the same time. If clicks of the mouse, taps on the keyboard, the scratch of pencil on paper, and the frustrated sighs of less-prepared test-takers are likely to distract you, you may want to use earplugs, which are available at most exam centers.

When I was taking my exam before earplugs were permitted, construction crews were working in the next room. Be sure to allow yourself an extra week or two for practice exams.

Review each chapter and complete each chapter exam until you have a firm grasp on a majority of the information. During the last one to two weeks leading up to the exam, take as many practice exams as possible. Remember to review each exam thoroughly before moving onto the next exam. Give it a rest: Taking short, 5—minute breaks can help you process and absorb information without confusing new ideas with the old. Also, a little human contact can go a long way, provided you have the discipline to hit the books again.

Sometimes, taking a break from one study method can be as good as taking a break from studying altogether. Use multiple types of study material textbooks, class notes, flash cards, and so on.

If at any point during your study time you get sick of looking at a textbook, you can review your notes, flip through or create some flash cards, or take some online practice exams. Staying focused from day to day Passing the Series 7 exam is a rite of passage.

In the meantime, make yourself a resolution: Until you pass the Series 7, you will limit your social life, and most of your waking hours will revolve around one purpose — studying for the exam. Repeat after me: If so, be sure that you never separate yourself from your textbooks for more than one day and that you jump right back into the Series 7 fire the next day.

Preparing for the Series 7 Exam Under no circumstances except in the case of a family emergency should you stop studying for more than one day within a two-week period.

The next thing they knew, they forgot half of what they learned. Fortunately, the information comes back faster the second time around. When you feel like you have a good handle on the material, you should start taking full practice exams to see where you stand. This book includes questions throughout the chapters and two question practice exams with answers and explanations.

The last one or two weeks before the exam should be almost entirely devoted to taking practice exams and reviewing them.

Always completely review a practice exam before you move on to the next one.

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If you run out of exams to take, purchase more or see whether someone else in your firm has a different book with tests you can borrow. The problem with study groups is that everyone wants to study the information that he or she is having problems with. If everyone is having a problem with the same thing, who can help you? I strongly feel that your time is better spent studying on your own.

Staying in shape Ignoring the importance of physical and mental fitness when you prepare to take the Series 7 exam is a big mistake. The exam itself and the prep time you put into your study schedule is physically demanding and mentally exhausting. You have to be alert and able to concentrate 23 24 Part I: Gearing Up for the Series 7 Exam on difficult questions for two three-hour sessions. In the weeks leading up to the test, any exercise you can do to keep yourself physically fit — including cardiovascular exercise such as jogging or bike riding — can help out.

A workout also gives you a great reason to take a study break. Here are some study strategies to supplement your routine of reading your textbook and taking practice exams: Having a good grasp of how ideas are related can provide a safety net for when rote memory fails; you may be able to make educated guesses, recreate formulas, or come up with something to jog your memory.

When you see an equation, try to figure out where the numbers come from and what the formula really tells you. Using your own words, try to put the more difficult areas of study into an outline or on flash cards.

The whole process of condensing large mountains of information into your own abbreviated outline helps you process and absorb difficult concepts.

Although the play-it-at-night technique has been known to give some people nightmares, this temporary condition usually clears up after the exam. The main benefit comes from making the initial recording and letting study material be the last thing you hear before you fall asleep. As you study, put a sticky note on a section or page in the book where you need more work.

After you have your book s filled with stickies, just study those difficult areas where the stickies are ; when you feel you have a good grasp on the information, remove the note from the book. Developing Solid Test-Taking Skills To be successful, you have to master the concepts that form the basis of the questions and, equally importantly, you need to develop your test-taking skills. The best way to develop test-taking skills is to take practice tests, such as the ones in this book and on the accompanying CD-ROM.

Exam creators love to trip you up by making you jump ahead and answer the question incorrectly before you read the entire problem. When reviewing the answers to a practice test, these questions cause some students to groan or slap themselves in the head when they realize their mistake. Look for phrases that lead to the topic tested Try to identify the specific category that the question is testing you on. After you know the topic, your brain can retrieve the information you need from its mental file cabinet, making it easier for you to focus on the applicable rule, equation, or concept, and you can answer the question correctly.

Work with what you have If possible, work with the facts in the question and only the facts in the question. Too often, students add their own interpretation to the question and turn a straightforward problem into a mess. Eliminate any answer s that you know must be wrong if any , take your best guess, and mark the question for review so you can easily return to it later. The question may even resolve itself. For example, another question may trigger your memory as you continue to take the exam, and the correct answer may become clear.

One way to do so is to figure out which question you need to be up to at the end of each half-hour; use that as a benchmark to keep track of your progress. In each of your two sessions, you have three hours to complete the exam. This gives you 1. Gearing Up for the Series 7 Exam Translating these numbers to half-hour benchmarks gets you the following results: Time Number of Questions Completed 30 minutes 22 1 hour 44 1.

If you find yourself falling behind, pick up your pace. Why waste two minutes on one long question for 0. If you easily and consistently finish question Series 7 practice exams in less than 3 hours, you should be okay on the real Series 7. The clock on the computer screen is a tool that can help you keep track of your time. Master the process of elimination The Series 7 exam is a standardized exam.

This format makes it similar to other practical exams of this type: The best way to find the correct answer may be to eliminate, one at a time, the incorrect answers. I help you develop this crucial skill as you tackle the topicspecific questions throughout the book. Maintain your concentration To maintain your concentration, read the stem of the question the last question before the answer choices first to keep yourself focused on what the question is asking.

Next, read through the entire problem including the stem to get a grip on the facts you have to consider to select the correct answer. You can then anticipate the correct answer and read all answer choices to see whether your anticipated answer is there.

Check out Chapter 3 for more detailed test-taking tips. You can also take care to keep yourself physically alert. The last hour or so of each session will probably be the most difficult. I recommend that you eat a small protein bar to help you keep your levels of energy and concentration high prior to starting your test. These foods boost your sugar level temporarily, but when the level drops, your energy and concentration levels will sink like a lead balloon.

Use the scrap paper wisely In the testing room, you receive six pieces of letter-sized scrap paper or a dry erase board , all of which will be collected — so restrain yourself from writing any obscenities about the exam or its creators.

Here are some more productive ways to use this valuable resource: On your scrap paper, write down the numbers of any questions you want to check before the end of the session. After your exam begins and before your brain gets cluttered with the Series 7 exam questions, use your scrap paper to jot down the formulas you memorized or topic matters that were giving you problems so that you can refresh your memory during the exam.

Your scrap paper will be collected at the end of the first session, so repeat the brain dump process after you begin the exam in the afternoon session. You know — the ones that you needed to study the morning of the test.

Those items should come to the surface of your brain as soon as you need them. If you have a problem with timing, you can pace yourself to avoid running out of time by using the clock on the computer. The clock is supposed to be a useful tool, not a hindrance.

Use the scrap paper to work out math problems, to create seesaws, or to make any other diagrams that help you rack up your points.

To determine your readiness, consider your scores on the practice exams the first time you take them. If you take a practice exam more than once, you may just be remembering the answers. We call ours The Annihilator — a question exam designed to be four-to-six points harder than the real exam. Students who pass with a 70 or better are most likely ready to take the Series 7.

The test designers have riddled the old pick-the-best-answer questions with all kinds of pitfalls. In this chapter, I introduce you to the types of questions to expect on the Series 7 exam, how to analyze the facts in the questions, and how to identify what the examiners are really testing you on.

I also show you how to use the process of elimination to find the right answer, and if all else fails, how to logically guess the best answer. Familiarizing Yourself with Question Formats The Series 7 exam is a beast of a test that poses questions in many different ways. Series 7 Exam For Dummies eBook: Steven M. Rice: Kindle Store

You have to deal with multi-tiered Roman numeral nightmares, open- and closed-ended sentences, and killers like except and not. Working with the straight shooters: The more straightforward type Straightforward question types include a group of sentences with the facts followed by a question or incomplete sentence; you then get four answer choices, one of which correctly answers the question or completes the idea.

Closed-stem questions You can find more closed-stem questions than any other question type on the Series 7 exam, so you better get a handle on answering these babies for sure. Thankfully, closed-stem questions are fairly run-of-the mill.

They begin with one or more sentences of information and end 30 Part I: Gearing Up for the Series 7 Exam with a question and appropriately enough, a question mark. The question mark is what makes closed-stem questions different from open-stem questions, which I discuss in the next section. Your answer choices lettered A through D may be complete or incomplete sentences.

Bearishnikoff is a conservative investor. Which of the following investments would you recommend to him? The first sentence tells you that Mr. Of course, sometimes the phrasing of the answer choices can help you immediately cut down on the answer choices. For instance, Mr.

Just accept the conditions the problem presents to you. Be careful to focus only on the information you need to answer the question. Open-stem questions An open-stem question poses the problem as an incomplete sentence, and your mission, should you choose to accept it, is to complete the sentence with the correct answer.

Options see Chapter 12 give the purchaser the right to buy or sell securities at a fixed price. Standard options have an initial maturity of nine months. Chapter 3: However, what makes the Series 7 so difficult is that the exam is loaded with so many date-oriented details. Date-oriented details are excellent material to include in your flash cards.

See Chapter 2 for more study suggestions. Encountering quirky questions with qualifiers To answer questions with qualifiers, you have to find the best answer to the question; if not for the qualifier most, least, best, except, or not , most of the answers would be correct.

Working with extremes: Most, least, best Recognizing the qualifier in the question stem and carefully reading every single answer choice are very important. Check out this example: Which of the following companies would be MOST affected by interest rate fluctuations? B Bulb Utility Co. C Crapco Vitamin Supplements, Inc. The answer is B. Although all companies may be somewhat affected by interest rate fluctuations, the question uses the word most. If interest rates increase, companies have to issue bonds with higher coupon interest rates.

Making exceptions: In other words, the correct answer is always the false answer. The question can be open as it is in the next example or closed. Right off the bat, look for an except or not in the stem of every question on the Series 7.

Many students who really know their material accidentally pick the wrong answer on a few questions because they carelessly miss the except or not. Take a look at an exception problem: A stockholder owns shares of WHY common stock.

WHY stockholders were given cumulative voting rights. If there are three vacancies on the board of directors, stockholders can cast any of the following votes EXCEPT A for one candidate B for each candidate C 2, for one candidate D for each candidate 31 32 Part I: Cumulative voting rights give smaller stockholders not heightwise, but in the number of shares owned an easier chance to gain representation on the board of directors because a stockholder may combine his or her total voting rights and vote the cumulative total in any way he or she wants.

In this example, you may be tempted to select answers A, B, or C, any of which would be correct if you were asked for the number of votes this stockholder could cast. Answer B is another possible voting arrangement because nobody said the stockholder has to use all the votes for one candidate. Choice C is another option because the stockholder has a total of 2, votes to cast.

Roman hell: Complex multiple choice Yes, the Series 7 exam creators even sneak complex two-tiered Roman numeral questions in on you. They can pose the question by asking you to put something in order, or they can ask you to find the best combination in a series of answer choices. To make things even more enjoyable, sometimes they even add except and not to the question see the preceding section.

Imposing order: Ranking questions To answer a ranking question, you have to choose the answer that places the information in the correct order — for example, first to last, last to first, highest to lowest, lowest to highest, and so on. Check out the following example: In which order, from first to last, are the following actions taken when opening a new options account?

Send the customer an ODD. Have the ROP approve the account. Execute the transaction. Have the customer send in an OAA.

Because option transactions are so risky, the customer has to receive an options risk disclosure document ODD prior to opening the account. Roman numeral I has to come first, so you can immediately eliminate answer choices B and C, giving you a 50 percent chance of answering correctly.

Last but not least, the customer signs and returns an options account agreement OAA within 15 days after the account is approved by the ROP. Taking two at a time The Roman numeral format also appears on the Series 7 with questions that offer two answer choices as the correct response. In these types of questions, you choose the responses that best answer the question: Which TWO of the following are the minimum requirements for an investor to be considered accredited?

If the word minimum were not used in the question, answer IV would also be correct.

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A little mystery: Dealing with an unknown number of correct statements In the preceding section, the question states that only two responses can be correct.

The following question may have one, three, or four correct answers. You can recognize this type of question simply by glancing at your answer choices. The only violation out of the choices listed is commingling. Chapter 16 can fill you in on rules and regulations. Odd lot transactions III are ones for fewer than shares a round lot and are okay. Forward pricing IV is what mutual funds do with orders placed by investors, allowing them to purchase or sell at the next price usually at the end of the day , which is also okay.

Looking at exhibits: Out of the exhibit questions you get, some of them just require you to find the correct information; others require a little calculating. Take a look at the following problem: This example accurately portrays the difficulty level of most of the exhibit questions on the Series 7 exam. After you remember the formula for working capital see Chapter 13 , you simply have to find the information you need — the current assets and current liabilities — on the balance sheet so you can answer the question: Almost nothing is worse than missing a question that you know how to figure out because you carelessly overlooked something right in front of you.

The following question has you locate information on call options: Option CDE This question involves options see Chapter 12 for calculations and more information. The first step is to find the premium for the CDE Nov 65 call in the exhibit. To accomplish this, line up the 65 strike price with the Nov expiration month; you find it in the third row of data. Follow that row over to the fifth column to get the premium for the Nov 65 call. First, enter the premium into the equation.

Next, you have to determine the intrinsic value how much the option is in-the-money. Call options go in-the-money when the price of the stock is above the strike price. The stock price is After placing those two numbers 6. Tips and Tricks In Chapter 2, I give you general exam proficiency tips.

In this section, I show you how to improve your analysis of topic-specific Series 7 questions. I also provide you with more sample exam questions to further demonstrate the art of choosing the correct answers. Focusing on key information The Series 7 exam questions can be particularly difficult if you rush through the exam and miss details that change the meaning of the question. Marking the questions may seem timeconsuming when you first begin to study, but if you get into the habit of picking out key words in each question, zoning in on the important information should be second nature by the time you take the test.

So instead, if you find yourself getting distracted by useless information, use the scrap paper to write down the information you do need. This example zeroes in on the essential information: A year-old investor purchases a 6 percent DEF convertible mortgage bond at 90 with 10 years until maturity. If the bond is currently trading at 97, what is the current yield? When determining the current yield of a bond, all you need is the market price of the bond and the coupon interest rate see Chapter 7.

To determine the current yield, divide the annual interest by the market price. Answer me this: Picking the correct answer The Series 7 exam is a practical, multiple-choice exam. The correct answer has to be one of the choices. Your best strategy may be eliminating the wrong answers.

In theory, you should be able to eliminate, one by one, three incorrect answers for each question. Obviously, if you can get the choices down to two potential answers, you have a chance of answering correctly. As a rule of thumb on the Series 7 exam, a more-precise answer is correct more often than a less-precise answer, and a longer answer usually but not always prevails over a short answer. If a response is potentially correct, write T for true next to the answer in your practice exam, and if a response is wrong, eliminate it by writing F for false next to the answer.

If you do this step correctly, you should end up with three Fs and one T, and the T is the correct answer. Or if the question is looking for a false answer, you should end up with three Ts and one F. On the actual test, you can write A through D on your scrap paper and mark the answer choices appropriately.

Always look to eliminate any wrong answers that you can. Pay attention to the wording, and get rid of choices that simply sound wrong or make statements that are too broad or absolute.

Take your best guess and mark the answer for review. When you review, look at your scrap paper to help you zone in on your potential answers. Gearing Up for the Series 7 Exam Getting down with numbers: Eliminating some math The process of elimination can get you out of some messy calculations. When dealing with math, look at the answer choices before you begin working out the problem. You may be able to get the answer without doing any calculations at all.

For instance, if you have a forward stock split, you know that the number of shares has to increase and that the price of the stock has to decrease see Chapter 6. If three of the answers fail to meet these conditions, you have your answer right off the bat. Stop opposing me: Dealing with opposite answers When answering multiple choice questions, if you see two opposing answer choices, only one can be right.

Traditionally, in practical exams like the Series 7, when you see two answer choices that are completely opposite from each other, the exam creators are trying to test your knowledge of the correct rule, procedure, or law, so one of those opposing choices will most likely be the correct answer. Take a look at the example: A There can be only one minor and one custodian per account.

B There can be more than one minor and one custodian per account. C Securities can only be purchased on margin. D They must be set up for children who have reached the age of majority. The answer is A. If you look at the answers, you notice that answers A and B oppose each other.

If you have two opposing answers, in almost all cases, one of them has to be right. Therefore, you can ignore answers C and D, which gives you a 50 percent chance of getting the answer right. Each account is limited to one minor and one custodian. See Chapter 16 for details on custodial accounts. Facing Roman numerals: Not as hard as you think Complex two-tiered multiple-choice questions, with both Roman numerals and letters, can be really frustrating because they usually signal the test taker you that you need more than one correct answer.

Traditionally, the first tier of these types of questions gives you several answer choices preceded by Roman numerals; the second tier preceded by letters provides you with choices about which Roman numeral answers are correct.

Because of the limited answer choices, you may not have to evaluate every statement — certain combinations of Roman numerals may be logically impossible. If the Roman numeral is correct, circle that number on the choices that follow the letters in the second tier. If the Roman numeral is false, all the letter answers that include that numeral must also be false, and you can cross them out. It covers commissions charged to customers when executing trades on an agency basis.

It covers markups on stock sold to customers from inventory. It covers markdowns on stock purchased from customers for inventory. Riskless and simultaneous are covered. This situation is one where you should look at the Roman numerals and pick out whatever answers you know answer the question. For example, if you know Roman numeral I is right which it is , put a T for true next to it.

Series 7 Exam For Dummies, with Online Practice Tests

Write T next to Roman numeral IV. The questions you answer incorrectly can be your best learning tools if you thoroughly review the explanations for each wrong answer. You may be tempted to jump from one practice exam to the next without taking adequate time to review your wrong answers. The last hurdle awaits you at the test center. In this chapter, I give you a snapshot of the Series 7 exam experience so you know the procedure before, during, and after you take the exam and can hit the ground running.

Get away from the books, go out to dinner maybe skip the spicy foods and alcohol , go to a movie. Rest your mind. Taking the evening off can help prevent brain fatigue and make zoning into exam mode easier tomorrow, when it counts the most.

Before you go to sleep, gather the items you need to take with you to the exam. Here are some activities to complete the night before the exam to finalize your preparations for the big day: The last thing you need to worry about on exam day is getting to the test center late and having to reschedule your exam.

To help avoid this disaster, do a test run sometime before the test date. You may even be able to check your local newspaper for details on upcoming construction or repairs that may affect roadways and public transportation. Make sure you have a charged cell phone and the test center number in case you get lost. Additionally, you have to bring at least one finger with you, preferably yours, so that the exam administrators can take a fingerprint though you probably have that packed already.

Calculators, pencils, and scrap paper will be provided for you at the exam center, and the exam administrators will collect the calculators, pencils, and all scrap paper used and unused at the end of each session. Making the Most of the Morning Now the big day is here. Be sure to eat at least a light breakfast. Grab everything you packed up the night before see the preceding section and head out the door. Chapter 4: Surviving Test Day Leave your home in time to arrive at the test center at least 30 minutes before your scheduled exam so you have time to check in.

In this section, I cover the steps to take upon your arrival at the exam center.

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If you require special accommodations, contact the NASD Special Conditions Team at for information about registration and for instructions about arriving at the exam center. Taking advantage of one last chance to cram The information you review just before the exam will be on the surface of your mind.

When you arrive at the exam center or even during your commute if you take public transportation , do some last-minute cramming. The formulas on the Cheat Sheet in this book may be helpful. Each Series 7 exam center is set up differently; you may find areas in the building where you can study, or you may have to study outside in your car, on a bench, or at a nearby coffee shop. Signing in To enter the Series 7 exam center, you have to provide the administrators with valid ID.

When inside the test center, you have to sign in and get photographed and fingerprinted. In addition, before you begin the exam, you have to read a form called the Rules of Conduct and agree to the terms. Getting seated Basically, the only things you may bring into the testing room are your own sweet self and possibly a set of earplugs. You can store all other personal property in a locker at the exam center. All new testing sites are supposed to have lockers, but some older sites may have been grandfathered without them.

You can ask when you make your appointment. For a list of the mostly medical items you can bring into the exam room, including which ones need inspection or pre-authorization, visit www.

The exam administrators escort you to the exam room.

Taking the Exam Take a deep breath, crack your knuckles, and get ready to make things count — this Series 7 exam is the genuine article. The test designers have even prepared a bonus for you: Lucky you! This means that you answer questions, but only really count. You get three hours to answer questions in the first half of the exam and three hours to answer questions in the second half. In between the two sessions, you have a muchneeded to minute break.

Most test centers offer the inspirational creature comforts of the office: You take your Series 7 in a cubicle approximately 4 feet wide with a computer and a small desk area. You may leave your cubicle for restroom breaks at any time, if necessary. The clock continues to run, however, so try to limit your intake of fluids before each session. Tackling the first half Just before you begin your first session, a member of the test center staff will walk you through the steps of how to use the computerized system.

If you do have any tech problems during the test, you can use the help button or summon the exam administrators. A picture of how a question appears on the computer screen is in Chapter 1. Keep track of time. Mark questions for review. Concentrate on the facts in question, and look for key words that can give you clues.

Use your amazing powers of elimination to identify wrong answer choices. Work your magic with specific question types see Chapter 3. Go over only the questions you marked for review. Try drawing diagrams. Visualize success and hang in there! After completing the first session, you get to leave your cubicle and take a short break.

Taking a break: At long last lunch After the first session, you get a minimum of 30 minutes and a maximum of 60 minutes for a lunch break before you begin the second session. Many test centers have vending machines on site; others have a full cafeteria. Remember, you can also bring your own food and keep it in your locker to eat after the first half.

After sitting at the computer for three hours, it may be a good idea to force yourself to walk around a bit, stand up, and fraternize with fellow test-takers and work off some nervous energy or at least try to wake yourself up.

The test center Rules of Conduct say that during the break and after the exam is completed , candidates may not discuss the exam with others, even those who are taking a different exam. Enjoy other topics of conversation. Heading down the home stretch: Completing the second half You follow the same procedure for taking the second half of the exam that you did in the first half. You get on the computer and answer another questions in three hours. You may find your endurance tested during the last hour or so.

If your energy level and concentration starts slipping and time allows, you may want to take a bathroom break and splash some water on your face to wake yourself up. If nothing else, the walk should at least get your blood flowing. Gearing Up for the Series 7 Exam After you complete the second half of the exam, look over the questions you marked for review. Getting the Results: The time may seem much longer, but in reality, you have to wait approximately 30 seconds before your score is revealed.

Your grade and the word passed or failed appear on the computer screen. If your grade is 70 or better, you passed the exam. You can retake the test, so you may still have a future on Wall Street. See Chapter 1 for what to do next. After you receive your exam score, you can leave your cubicle. Bring your scrap paper, pencil, and calculator with you, and turn them over to the exam center staff. Regardless of whether you passed or failed the exam, you receive a printout of your grade and the breakdown of your performance on the Series 7 exam topics.

Employers receive a copy of the results in the mail, or if tied into the NASD computer system, they can get results online. These chapters review the registration procedure that securities go through before they can be sold to the public and reveal which securities are exempt from registration. Finally, they help you distinguish common stock from preferred stock, corporate bonds from U.

Most securities go through a registration procedure before the public can buy them. The Series 7 exam tests your ability to recognize the players and institutions involved in the registration process. In this chapter, I cover topics related to bringing new issues to market. This chapter also includes a few practice questions to help you measure how well you understand the topic.

Bringing New Issues to the Market A lot of things need to happen before securities hit the market. Not only do the securities have to be registered, but the issuer has to find a company like your firm to sell the securities to the public. The Series 7 exam tests your expertise in answering questions about this process. Starting out: What the issuer does For an entity to become a corporation, the founders must file a document called a corporate charter bylaws in the home state of its business.

Included in the corporate charter are the names of the founders, the type of business, the place of business, the amount of shares that can be issued, and so on. If a corporation wants to sell securities to the public, it has to register with states and the Securities and Exchange Commission SEC. Read on for info on how the registration process works. Mastering Basic Security Investments The securities acts Registration helps ensure that securities issued to the public adhere to certain regulations though anti-fraud rules also apply to exempt securities.

The following acts are designed to protect investors from unscrupulous issuers, firms, and salespeople see Chapter 16 for details on other rules and regulations. In addition, the Act of regulates The Securities Act of An issuer of corporate securities must provide full and fair disclosure about itself and the offering. Included in this act are rules to prevent fraud and deception. The trust indenture is a written agreement that protects investors by disclosing the particulars of the issue coupon rate, maturity date, any collateral backing the bond, and so on.

The issuer is responsible for registering the security not only with the SEC but also in each state in which the securities are to be sold. Here are the methods of state security registration: Notification is the simplest form of registration for established companies. Companies who have previously sold securities in a state can renew their previous application. This method involves registering with the SEC and states at the same time.

The SEC helps companies meet the blue sky laws by notifying all states in which the securities are to be sold. Companies use this registration method for securities that are exempt from registration with the SEC but require registration with the state. Chapter 5: Underwriting Securities Role call: Registered reps can work for any of these firms: You can think of investment bankers as the brains of the operation, because they help the issuer decide what securities to issue, how much to issue, the selling price, and so on.

Not only do investment bankers advise issuers, but they usually underwrite the issue and may also become the managing underwriter in the offering of new securities. The underwriter is a broker-dealer that helps the issuer bring new securities to the public. Underwriters purchase the securities from the issuer and sell them to the public for a nice profit yippee! When an issue is too large for one firm to handle, the syndicate manager managing underwriter forms a syndicate to help sell the securities and relieve some of the financial burden on the managing underwriter.

The managing underwriter receives financial compensation buckets-obucks for each and every share sold. In the event that the syndicate members feel that they need more help selling the securities, they can recruit selling group members. Who gets what: Distributing the profits When larger issues come to market, the underwriter lead underwriter often has to form a syndicate to help sell the securities.

When selling the securities to the public, each entity lead underwriter, syndicate members, selling group, and so on — see the preceding section receives a different portion of the selling profits.

I list the terms in order from the highest dollar amount to the lowest: The spread is the difference between the amount the syndicate pays the issuer when purchasing new shares or bonds and the public offering price for each share or bond sold. Naturally, you get the following formula: The takedown is the profit that each syndicate member makes when selling shares or bonds to the public.

The concession is the profit that the selling group makes when selling shares or bonds to the public. The concession is paid out of the takedown. The profit made by syndicate members on shares or bonds sold by the selling group is called the additional takedown.

For example, assume ABC Corporation is in the process of issuing new shares. No sweat. That discount is the reallowance. This part of the spread is the profit the syndicate manager makes on shares or bonds sold by anyone.

This fee is usually the smallest of all of the listed fees. The following question tests your knowledge of distribution of profits: Nogo Auto Corp. Nogo contacts Thor Broker-Dealer Corp. Thor realizes that the issue is too big to underwrite by itself, so it forms a syndicate. This question is a little tricky because you have to determine the takedown the profit syndicate members make before you can figure out the additional takedown.

The additional takedown is the profit syndicate members make on shares sold by the selling group. Underwriting Securities Agreeing to sell your share: Western versus Eastern accounts The syndicate agreement, also called the agreement among underwriters, is the contract among syndicate members.

This agreement includes the fee structure who gets what — see the preceding section. In this securities underwriting, the syndicate agreement states that each syndicate member is responsible only for the shares or bonds originally allocated to it.

To distinguish an Eastern account from a Western account, remember the phrase wild, wild West, because back in the day, each man or syndicate member in this case was for himself. In this securities underwriting, the syndicate agreement states that each syndicate member is responsible not only for the shares or bonds originally allocated to it but also for a portion of the shares or bonds left unsold by other apparently less aggressive members.

If a syndicate member was originally responsible for 10 percent of the new issue, it would be responsible for 10 percent of the shares or bonds left unsold by other members. The following question tests your knowledge of Eastern and Western accounts: There are 10 syndicate members each with an equal participation.

Firm A, which is part of the syndicate, sells its entire allotment. Your key to this question is that the underwriting was done on an Eastern account basis. The Series 7 tests you on the following items that relate to securities registration. Cooling-off period After the issuer files a registration statement with the SEC, a day cooling-off period begins.

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During the day and often longer cooling-off period, the good old SEC reviews the registration statement. At the end of the cooling-off period, the issue will hopefully be cleared for sale to the public. During the cooling-off period, the underwriter or underwriters can obtain indications of interest from investors who may want to purchase the issue. Registered reps like you in the not-too-distant future scramble to get indications of interest from prospective purchasers of the securities.

Tombstone ads are optional. Also during the cooling-off period, the underwriters and selling group members use the preliminary prospectus to obtain indications of interest from prospective customers.

The preliminary prospectus must be made available to all customers who are interested in the new issue during the cooling-off period. Due diligence meeting Toward the end of the cooling-off period, the underwriter holds a due diligence meeting.

During this meeting, the underwriter provides information about the issue and what the issuer will use the proceeds of sale for. The meeting is designed to provide the information to syndicate members, selling groups, brokers, analysts, institutions, and so on. The last time syndicate members can back out of an underwriting agreement is toward the end of the cooling-off period around the time of the due diligence meeting. Getting the skinny on the issue and issuer: The preliminary prospectus must be available for potential purchasers when the issue is in registration in the cooling-off period with the SEC.

The preliminary prospectus is abbreviated, but it contains all essential facts about the issuer and issue except for the final offering price public offering price, or POP and the effective date the date that the issue will first be sold.

The final prospectus, which is prepared toward the end of the cooling-off period, is a legal document that the issuer prepares; it contains material information about the issuer and new issue of securities. The final prospectus has to be available to all potential purchasers of the issue. These jobs are assigned to the registrar and transfer agent. An easy way to keep these folks straight is to remember that a registrar is responsible for counting things and a transfer agent is responsible for transferring or sending things.

Getting Up to Speed on the Types of Securities Offerings Table deals with different types of offerings that you as a mega-broker should be familiar with. The offerings that follow usually require the services of an underwriter or underwriting syndicate to sell the securities to the public. Table Type Types of Securities Offerings Description Initial public offering IPO The first time an issuer sells stock to the public to raise capital; issuers usually hold back some stock for future primary offerings.

Who Profits The bulk of the moolah raised goes to the issuer, and the rest goes to the underwriters. Mastering Basic Security Investments Table continued Type Description Who Profits Primary offering An offering of new securities from The proceeds of sale go the issuer an issuer that has previously issued and underwriters.

Split combined offering A combination of a primary and secondary offering, with both new and outstanding securities. A portion of the sales proceeds goes to the issuer, and a portion goes to the selling stockholders. For IPOs, a final prospectus needs to be available to all purchasers of the IPO for 90 days after the effective date the first day the security starts trading.

With primary, secondary, or combined offerings, a final prospectus has to be available to all purchasers of the primary offering for 25 days after the effective date for all issuers whose securities are already listed on an exchange or NASDAQ.

If an issuer has already issued securities but not on an exchange or NASDAQ, the final prospectus has to be available for 40 days after the effective date. The following question tests your knowledge on the types of offerings, whether new or outstanding: DEF Corp. Which of the following are TRUE about this offering? The number of outstanding shares will increase by , The number of outstanding shares will increase by 1,, Underwriting Securities The answer is D. This offering is a combined, or split, offering.

The 1,, shares that were previously unissued is a primary offering, and the , shares held by insiders is a secondary offering. Answering this question correctly requires a little bit of deduction on your part.

Because 1,, shares were previously unissued kept by the company for future use , the number of outstanding shares increases by that amount. When considering whether the earnings per share EPS increases or decreases, look at what happened. You can assume that the company earned the same amount of money. Now that same amount of money has to be divided among 1,, more shares. Therefore, you deduce that the EPS would decrease, not increase. Reviewing Exemptions Certain securities are exempt from registration because of the type of security or the type of transaction.

Exempt securities Certain securities are exempt from the registration requirements under the Securities Act of Either these securities come from issuers that have a high level of creditworthiness, or another government regulatory agency has some sort of jurisdiction over the issuer of the securities.

However, variable annuities require registration because the payout varies depending on the performance of the securities held in the separate account. For more info on annuities and other packaged securities, see Chapter Exempt transactions Some securities that corporations offer may be exempt from the full registration requirements of the Securities Act of due to the nature of the sale.

The following list shows you these exemptions: An intrastate offering is, naturally, an offering of securities within one state.

The securities still require registration at the state level. Interstate offerings do need SEC registration. To help you remember, think of an interstate roadway, which continues from one state to the next. Regulation A offerings are exempt from the full registration requirements but you still have to file a simplified registration. Also known as a private placement, a Regulation D offering is an offering to no more than 35 unaccredited investors per year. Companies who issue securities through private placement are allowed to raise an unlimited amount of money but are limited on the number of unaccredited investors.

Sales of Reg D securities are subject to the sales limitations as set forth under Rule This rule covers the sale of restricted, unregistered, and control securities.

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According to Rule , sellers of these securities must wait at least one year prior to selling the securities to the public. Additionally, the most an investor can sell at one time is 1 percent of the outstanding shares or the average weekly trading volume for the previous four weeks, whichever is greater.

The following example tests your ability to answer restricted-stock questions: John Bullini purchased shares of restricted stock and wants to sell under Rule John has fully paid for the shares and has held them for over one year. There are 1,, shares outstanding. Form is filed on Monday, May 28, and the weekly trading volume for the restricted stock is as follows: Week Ending Trading Volume May 25 16, shares May 18 15, shares May 11 17, shares May 4 15, shares April 27 18, shares What is the maximum number of shares John can sell with this filing?

A 15, B 15, C 16, D 16, Chapter 5: Underwriting Securities The answer is B. The test writers often try to trick you on the Series 7 exam by giving you at least an extra week more than you need to answer the question.

Because John has held his restricted stock for over a year, he can sell 1 percent of the outstanding shares or the averaged weekly trading volume for the previous four weeks, whichever is greater: Figure out 1 percent of the outstanding shares by multiplying the outstanding shares by 1 percent easy, right? In this case, you come up with an answer of 15, shares. The other possible answer is the average weekly trading volume for the previous four weeks.

Add the trading volume for the previous four weeks the top four in the chart and divide by 4 to get an answer of 15, shares. Even securities exempt from registration are subject to anti-fraud rules. All securities are subject to anti-fraud provisions of the Securities Act of , which requires issuers to provide accurate information regarding any securities offered to the public. For Further Review To be properly prepared for the Series 7, you need to know the information in this chapter and have a good handle on the following terms and ideas related to underwriting securities: All publicly held corporations issue equity securities to investors.

The Series 7 exam tests you on your ability to recognize the types of equity securities and on some other basic information. In this chapter, I cover the Series 7 exam topics that are the most tested and most difficult to understand relating to company ownership.

This chapter also gives you plenty of examples to familiarize you with the types of equities securities questions on the Series 7 exam. Beginning with the Basics: Common Stock Corporations issue common stock as well as other securities to raise business capital. As an equity security, common stock represents ownership of the issuing corporation.