Series 7 Exam prep questions and answers
2026\2027 A+ Grade
Capitalization
- correct answer shares outstanding X price per share, The total amount of the various securities issued
by a corporation including bonds, debentures, preferred stock, common stock, and surplus, which
represent the sources of long-term financing of the company
SMA
- correct answer Like a credit card - a line of credit
purchase power is 2X SMA
Stopped Stock
- correct answer Specialist guaranteed a certain
price to a floor
Stopped trading
- correct answer no trades until restated
buy stop
- correct answer accelerates Bull Market
Buy Stop
- correct answer elected when it reaches the stop price - then fills at market - below or above price
used to protect against a loss and to lock in a gain when used with a short stock position.
sell stop
- correct answer accelerates Bear Market
,403 B Plan
- correct answer Only non profit employees
no investment in stocks in plan
sell stop
- correct answer elected at a price that is X or below
order is triggered and then it becomes a market order to be sold at x or higher
used to protect against a loss and to lock in a gain when used with a long stock position.
Serial Bond
- correct answer characterized by decreased interest
mutual fund Yield
- correct answer dividend / offer price
options: even stock split
- correct answer nbr contract up and premium / strike price reduced
options: odd stock split
- correct answer nor of contract remain the same and strike price and premium reduced
co-terminus
- correct answer all debt is overlapping (100 %)
nyse
- correct answer all industrial, transportation, utility and fin. stocks
wilshire 5000
- correct answer comprised of 6, 000 stocks on the nyse, mex and nasdaq
, dow jones average
- correct answer 30 component stocks
IPO
- correct answer no margin, no short sell, no relations of B/D
options
- correct answer not marginable, always result in capital gain or losses
to protect
- correct answer buy a put
for income
- correct answer write covered call
ALPHA
- correct answer violality measure - changes within company 1 - no change, 1.5 - up 50%, .75 - down 25%
/ violability measurement based on past vol.
WKSI
- correct answer well know seasoned issues.
patriot ACT
- correct answer suspicious Activity report (SAR) for under 10,000 deposit or
CTR Currency Transacion Report for deposits exceeding 10,000
1933
- correct answer New Issues
penny stock rule 15c 2-6
- correct answer designated securities- nonlisted, non Nasdaq and less than $5.00 or yes if Investor with
firm more than one year and made 3 unsolicited purchases
2026\2027 A+ Grade
Capitalization
- correct answer shares outstanding X price per share, The total amount of the various securities issued
by a corporation including bonds, debentures, preferred stock, common stock, and surplus, which
represent the sources of long-term financing of the company
SMA
- correct answer Like a credit card - a line of credit
purchase power is 2X SMA
Stopped Stock
- correct answer Specialist guaranteed a certain
price to a floor
Stopped trading
- correct answer no trades until restated
buy stop
- correct answer accelerates Bull Market
Buy Stop
- correct answer elected when it reaches the stop price - then fills at market - below or above price
used to protect against a loss and to lock in a gain when used with a short stock position.
sell stop
- correct answer accelerates Bear Market
,403 B Plan
- correct answer Only non profit employees
no investment in stocks in plan
sell stop
- correct answer elected at a price that is X or below
order is triggered and then it becomes a market order to be sold at x or higher
used to protect against a loss and to lock in a gain when used with a long stock position.
Serial Bond
- correct answer characterized by decreased interest
mutual fund Yield
- correct answer dividend / offer price
options: even stock split
- correct answer nbr contract up and premium / strike price reduced
options: odd stock split
- correct answer nor of contract remain the same and strike price and premium reduced
co-terminus
- correct answer all debt is overlapping (100 %)
nyse
- correct answer all industrial, transportation, utility and fin. stocks
wilshire 5000
- correct answer comprised of 6, 000 stocks on the nyse, mex and nasdaq
, dow jones average
- correct answer 30 component stocks
IPO
- correct answer no margin, no short sell, no relations of B/D
options
- correct answer not marginable, always result in capital gain or losses
to protect
- correct answer buy a put
for income
- correct answer write covered call
ALPHA
- correct answer violality measure - changes within company 1 - no change, 1.5 - up 50%, .75 - down 25%
/ violability measurement based on past vol.
WKSI
- correct answer well know seasoned issues.
patriot ACT
- correct answer suspicious Activity report (SAR) for under 10,000 deposit or
CTR Currency Transacion Report for deposits exceeding 10,000
1933
- correct answer New Issues
penny stock rule 15c 2-6
- correct answer designated securities- nonlisted, non Nasdaq and less than $5.00 or yes if Investor with
firm more than one year and made 3 unsolicited purchases
