TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
FINRA Series 7 Exam Study Guide with
Complete Solutions
T-Bond - ✔️✔️Correct-Usually 10-30 years that pay interest every 6 months. They are
quoted exactly like T-Notes
Securities Fund Service - ✔️✔️Correct-SFS
Swap Execution Facility - ✔️✔️Correct-SEF
None Deliverable Forward - ✔️✔️Correct-NDF
Direct Custody Clearing - ✔️✔️Correct-DCC
Office of Foreign Asset Control - ✔️✔️Correct-OFAC
What makes parity important when pricing convertible bonds? - ✔️✔️Correct-The
conversation rate can slip out of parity with what a bond can sell for on the open market.
This it is important to do the math on conversation rate before deciding to convert into
common or sell the bond on the market.
Treasury Receipts - ✔️✔️Correct-Are created by brokerage firms from Treasury Notes
that are held in trust and collateralized.
Yes, the trust indenture anti dilution covenant requires an adjustment to the share price
for stock splits, stock dividends, and new issuance of shares. - ✔️✔️Correct-Does the
Trust Indenture provide an anti dilution covenant?
1/3
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
FINRA Series 7 Exam Study Guide with
Complete Solutions
T-Bond - ✔️✔️Correct-Usually 10-30 years that pay interest every 6 months. They are
quoted exactly like T-Notes
Securities Fund Service - ✔️✔️Correct-SFS
Swap Execution Facility - ✔️✔️Correct-SEF
None Deliverable Forward - ✔️✔️Correct-NDF
Direct Custody Clearing - ✔️✔️Correct-DCC
Office of Foreign Asset Control - ✔️✔️Correct-OFAC
What makes parity important when pricing convertible bonds? - ✔️✔️Correct-The
conversation rate can slip out of parity with what a bond can sell for on the open market.
This it is important to do the math on conversation rate before deciding to convert into
common or sell the bond on the market.
Treasury Receipts - ✔️✔️Correct-Are created by brokerage firms from Treasury Notes
that are held in trust and collateralized.
Yes, the trust indenture anti dilution covenant requires an adjustment to the share price
for stock splits, stock dividends, and new issuance of shares. - ✔️✔️Correct-Does the
Trust Indenture provide an anti dilution covenant?
1/3
