100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
FINRA Series 7 Exam Questions and Answers | 100% Pass $12.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. Sie
  4.  
  5. Sie

Exam (elaborations)

FINRA Series 7 Exam Questions and Answers | 100% Pass
 7 views  0 purchase
  • Course
  • Sie
  • Institution
  • Sie

FINRA Series 7 Exam Questions and Answers | 100% Pass What information must be disclosed by a broker dealer in a research report? - Answer️️ -Any investment banking compensation paid in past 12 months, anticipated price target, if analyst is a director of the company, any ownership in the c...

[Show more]

Preview 4 out of 51  pages

Document information

  • September 25, 2024
  • 51
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • finra series 7 exam questions and answers 100 p

Written for

  • Sie
  • Sie

Seller

avatar-seller
EmillyCharlotte

Reviews received

Content preview

TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024

FINRA Series 7 Exam Questions and
Answers | 100% Pass


What information must be disclosed by a broker dealer in a research report? -

Answer✔️✔️-Any investment banking compensation paid in past 12 months, anticipated

price target, if analyst is a director of the company, any ownership in the company held

by the analyst or analyst family members.


Subordinated Debenture Bonds - Answer✔️✔️-Unsecured bonds, secured by the full faith

and credit and no specific collateral of the corporation.

Section 457 Plan - Answer✔️✔️-Retirement plan used by public sector workers. Similar to

401(k), have similar tax and contribution features. Used by some local government

workers as well.

ETNs (Exchange-traded notes) - Answer✔️✔️-Carry issuer risk tied to the

creditworthiness of the institution backing the note. They typically do not pay interest.

Returns are linked to the performance of an index, currency, or commodity and suitable

for investors looking to speculate on an index.

CD (Certificate of Deposit) - Answer✔️✔️-Issued by banks, they have a fixed maturity

date and interest rate that is paid. Early withdrawal from a CD will typically result in a

penalty. Short term money-market security.


1/51

,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
What is typically associated with an expanding economy? (expansion). - Answer✔️✔️-

Rising interest rates, increased costs along with lower unemployment. An increasing

demand for goods. Inflation begins to occur as well.

Balance Sheet - Answer✔️✔️-Consists of a company's Assets, liabilities, and

shareholder's equity. Equation: Total Assets= Total Liabilities + Shareholders Equity.

How long does a customer have to return the options agreement? - Answer✔️✔️-Within

15 days of the approval of the account. After these 15 days, the customer is only

permitted to close out existing options positions. A customer may enter options

transactions before the options agreement is returned, but after those 15 days they

cannot.

How are Treasury Bonds quoted? - Answer✔️✔️-Treasury Bonds are quoted in 32nds of

a point, and are then calculated as a percentage of their par value. Ex. The difference

between 98.4 and 98.8 is 4/32. Since one point equals $10, 4/32 or 1/8 equals $1.25.

How do you find the ask price (also known as POP or public offering price) of a open-

end investment company? - Answer✔️✔️-Divide the net asset value by the complement

of the sales charge. NAV/(100%-sales charge)= ask price.

Variable life insurance policy characteristics - Answer✔️✔️-Value of the policy increases

or decreases in relation to the performance of the separate account. Poor performance

could cause the cash value to decline to zero. Death benefit can increase or decrease,

but cannot fall below a separate amount. Premiums are fixed for the lifetime of the



2/51

,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
policy. The expense guarantee clause prevents insurance companies from raising

expense charges for the administration of the policy.

How do you calculate Accrued Interest? - Answer✔️✔️-Accrued interest = (Principal x

Rate x Days of Interest) / 360. Ex. Monday, June 15, investor purchases $20,000 face

value of 8% municipal bonds that mature on November 1, 2035. November 1 is one

maturity date, May 1 the other (because 6 months). 30 days for May, 17 for June. So

calculation would be Accrued Interest = (20,000 x 8% x 47) / 360.

How the premium of an option calculated? - Answer✔️✔️-Premium = Intrinsic Value +

Time Value

Credit Spread - Answer✔️✔️-A spread in which the premium of the option being sold is

higher. In a credit spread, the customer will profit if the spread narrows.

Defined Benefit Plan - Answer✔️✔️-A type of pension fund. It is tax-differed, therefore it

would not benefit from the tax exemption of municipal bonds. Plan promises to pay

employees a specified amount of money each year once the employee retires. Payment

based on age, years of service, salary history. Actuarial calculations are used to

determine the amount an employer must deposit each year.

Sales Breakpoint (Mutual Fund) - Answer✔️✔️-The minimum dollar amount (not share

amount) of a purchase of a mutual fund where a volume discount is given.

Penny Stock - Answer✔️✔️-According to SEC rules, a stock that sells for less than $5.00,

is not listed on Nasdaq or NYSE. A stock quoted on the OTC Bulletin Board or OTC

Pink Market that has a bid price less than $5.00 is a penny stock.
3/51

, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
When don't penny stock rules apply? - Answer✔️✔️-The customer is defined as an

existing customer, as in someone who has had an account with a broker-dealer for

more than one year and who has previously engaged in 3 penny stock transactions. In

transactions by an institutional accredited investor, in transactions nonrecommended, in

transactions by a broker-dealer that is not a market maker in that security.

What is the maintenance requirement on stocks sold short? - Answer✔️✔️-If the security

is less than $5 per share, a minimum maintenance requirement of $2.50 per share or

100% market value, whichever is greater, applies. Otherwise, it's 50% of market value.

Eurodollars - Answer✔️✔️-U.S. dollars on deposit in foreign banks. Doesn't have to be

Europe.

Registered Options Principal (ROP) - Answer✔️✔️-Responsible for firm's compliance

program with options. Duties include establishing guidelines for options retail

communication, reviewing this material, reviewing the method of allocation of exercise

notices.

2x Leveraged ETF - Answer✔️✔️-Designed to reflect twice the performance of the

underlying index. So, if a 2x leveraged ETF appreciates by 10%, it is actually

appreciating by 20%.

Treasury STRIP - Answer✔️✔️-A type of zero coupon bond.

What type of bond has the most interest rate risk? - Answer✔️✔️-A zero coupon bond.




4/51

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller EmillyCharlotte. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80796 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart