When you pass the Series 7 exam and the Securities Industry Essentials (SIE) exam, you are qualified to solicit, purchase securities products, sell securities products, and assess and sell variable contracts. As part of this restructuring, FINRA has created a tailored Polish Your Series 7 Skills with Our Free Options Worksheet. While passing the Series 7 may seem like the biggest challenge, sometimes the hardest questions are: Am I ready? The definition of a restricted margin account is one in which the equity is less than the Reg. Unless the client believes the stock is about the ‘break out’ to the upside and pierce through the resistance level, the client will sell, taking the profit. A margin account customer buys 100 shares of JKS common at 80 and deposits the required Reg. Over 2000 questions; Get unlimited access to our exam prep software 24 X 7 for 6 months. A long call locks in the price at which the borrowed stock may be repurchased. Start by getting one of the best Series 7 study guides. You inform him this is the result of the 3 for 2 split, previously announced by the Board, which just went ex. All materials provided to you are to be returned at the end of your test. He informs you that he likes ABC Technology, Inc. and has instructed you to buy it when you think the time and price are right and to buy as much of it as you believe is reasonable when considering his portfolio mix and investment objectives. In addition to knowing the duties and responsibilities of a general securities representative, you are expected to have an understanding of the rules and regulations governing your profession. Brokers are paid commissions when there are transactions, purchases or sales. Advisors are compensated based upon transactions, brokers are compensated based upon assets under management. 7) Which of the following is a description of the third market? How many additional shares will be showing on his next statement? principal is repaid at maturity in US dollars. the regulation which requires this is: Regulation SHO contains the ‘locate rule’ requiring the order dept. The flashcards present the concepts you need to understand in an easy-to-use method that aids in not only retention but comprehension. the firm will do a sell-out, at Mr. Watney’s expense, and freeze his account for 90 calendar days. Also, this page requires javascript. In total, 125 questions will count toward your final score. The other 10 questions are experimental and could appear in any position within the actual test. Contributions are permitted to be made to an H.R.10 plan, better known as the Keogh Plan, based upon, part time wages as an employee of a partnership, compensation earned as a freelance writer, alimony received as part of a court settlement. Like all other securities qualification exams, the Series 7 exam is administered by computer at a Prometric testing center. A 7% preferred stock C. A 7 ¼ % corporate bond D. A 7 ¼% US government bond. Your firm has hired a new candidate to be a municipal securities registered representative. Also known as the General Securities Registered Representative license, the Series 7 license is administered by FINRA. the ex-date for stock dividends 25% or greater is normally 1 business day past the payable date. Series 7 Study Guide. We hope you enjoy our products! However, only 125 of the questions count toward the Series 7 grade. To get your Series 7 license, you must be sponsored by a financial firm that is a member of FINRA. price a market maker can expect to receive from a customer, price a customer can expect to pay for the stock, price a market maker will pay a customer for the stock, equivalent to the net asset value of the stock, When a customer sells stock, the customer is paid the highest price that dealers, also called market makers, are. On December 30th, with no other gains or losses for the year, Mr. Mickelson liquidated 300 shares of Ford common at $10 in which he had a cost basis of $20. Therefore, non payment in T+3 does not result in any action. Liquidity is normally not a concern, since there are always buyers for US T-bonds. Trading of outstanding securities C. Underwriting of new issues D. Listed securities trading OTC. Resistance at 60 tells us that if the stock is currently in the upper 50’s, it will not go above 60: it will encounter ‘resistance’ at that point. For a 1000 share short sale, the deposit requirement is $2,500. order. Yes, you must be sponsored by a FINRA member firm to take the Series 7 exam. To take the Series 7 exam, you need a FINRA-member firm or SRO to sponsor you. This practice test features 50 challenging questions that cover a wide variety of the topics that you will need to know for your exam. An investment in United States Treasury bonds may be subject to which of the following taxes? Advisors are compensated based upon performance, brokers are not. FINRA defines a ‘breakpoint sale’ as the violation which occurs when a registered rep fails to inform, or remind a mutual fund investor of the availability of reduced sales charges at breakpoints, in particular when that investor is purchasing an amount not far from a breakpoint. Once triggered, they become market orders and will be executed at the next available price. We hope this article answers all of your questions about the Series 7 top-off exam and license. A client of yours with a conservative level of tolerance for systematic risk and a fairly long time horizon has indicated that she would prefer to avoid substantial portfolio turnover. or SRO. The Internal Revenue Code states that buying a put option to protect a long stock position showing an unrealized short term capital gain wipes out the holding period that has accumulated to that point in time. Each function consists of tasks requiring specific knowledge to perform each function and task. For example, if a CPA wants to offer annuities and retirement planning services to clients, the You do not necessarily need a bachelors degree to take the Series 7. For the customer who is seeking to hedge a short stock position, which of these strategies can provide some degree of protection? How many questions are on the Series 7 exam? Mr. Daly has contacted you regarding some confusion related to the sudden dramatic drop in the price of his shares of Wells Fargo common. Prior to the execution of a short sale of stock, it is the responsibility of the member firm handling the order to obtain an appropriate level of certainty that the shares are available for borrowing and within a time frame which will allow regular way delivery. It is a test for Registered Representatives, or those who want to sell any type of securities. Credit risk is essentially non-existent with United States bonds. Your sponsoring firm needs to complete and file the Uniform Application for Securities Industry Registration (Form U4). The breadth of the market is measured by the, daily volume compared to the average daily volume. If the Board declares a dividend of $200,000, the per-share dividend payout would be: Dividends are paid on shares which are outstanding in the hands of investors, not on treasury stock. Knowing the full spectrum of the client’s investment portfolio holdings, financial situation, tax stat… Regulation A B. If you’re interested in taking the exam, we have Series 7 exam preparation packages. We have two free Series 7 practice exams that you can work through. Anyway, the Series 7 (Series 7 Top Off) practice questions below will give you an idea of the types of questions you will see when taking the real exam. Your customer Mr. Furyk has expressed an interest in adding technology stocks to his portfolio. ABC is currently trading at $14 and Rose’s initial cost for the shares nearly a decade ago was $7/share. The questions are detailed and related to the day-to-day activities, responsibilities, and job functions of representatives. (adsbygoogle = window.adsbygoogle || []).push({}). However, only 125 of the questions count toward the Series 7 grade. When it comes to the determination of ex-dividend dates: the ex dividend date for open-end investment company shares is set by the Board or the principal underwriter of the fund. Start your test prep right now with our Series 7 practice questions. Series 7 Test Study Guide with Practice Questions, Function 1 – seeking business for the broker-dealer from customers and potential customers – 9 questions, Function 2 – opening accounts after obtaining and evaluating financial profile and investment objectives – 11 questions, Function 3 – provide information about investments, make suitable recommendations, transfer assets, and maintain appropriate records – 91 questions, Function 4 – obtain and verify purchase and sales instructions and agreements; process, complete and confirm transactions – 14 questions.
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