Series 7 Exam prep UPDATED ACTUAL
Exam Questions and CORRECT Answers
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
Reg D - CORRECT ANSWER - only 35 investor can be non accredited
accredited investor unlimited
1. 1 million exc. home/auto
2. 200,00 income % expected 200,000
3. purchaser 150,000
Reg A - CORRECT ANSWER - $5 million limitation, 5 M per year, unlimited investors,
30% of stock can be pre-owned.
Reg NMS - CORRECT ANSWER - all min 100 shares up to 10,000
all mkt maker & special to process any size order
seller must report in 30 seconds
Exam Questions and CORRECT Answers
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
Reg D - CORRECT ANSWER - only 35 investor can be non accredited
accredited investor unlimited
1. 1 million exc. home/auto
2. 200,00 income % expected 200,000
3. purchaser 150,000
Reg A - CORRECT ANSWER - $5 million limitation, 5 M per year, unlimited investors,
30% of stock can be pre-owned.
Reg NMS - CORRECT ANSWER - all min 100 shares up to 10,000
all mkt maker & special to process any size order
seller must report in 30 seconds
