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Series 7 Exam With Complete Solutions Latest Update
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Series 7 Exam With Complete Solutions Latest Update...
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Series 7 Exam With Complete SolutionsLatest Update
The following is the minimum maintenance in a short account - ANSWER 30% of the
market value or $5 per share, whichever is greater, for stocks trading above $5.
The minimum maintenance for stocks trading below $5- ANSWER $2.50 per share or 100
% of market value, whichever is greater.
Duration measures ANSWER a bond's price volatility by weighting the length of time it
takes for a bond's cash flow to pay for itself.
If two bonds have the same maturity, but one bond has a higher coupon rate than the
other, then the bond with the smaller coupon will have the longer duration. This is
because an interest bearing bond receives cashflow over its lifetime and that makes its
duration less than its maturity. The greater the duration of a bond the greater its price
volatility. Duration is measured in years (time) rather than as a percent.
The duration of a 10-year bond with a 5% coupon is longer than the duration of a 10-year
bond with a 10% coupon.
has historically been the longest initial maturity of T-bills, the shortest - ANSWER 6
months (26 weeks); the shortest initial maturity is 4 weeks.
Secured debt is ____ general creditors in the liquidation order - ANSWER higher
Liquidation order is as follows - ANSWER wages, taxes, secured debt holders,
unsecured debt holders - general creditors, holders of subordinated bonds, preferred
stockholders, and common stockholders
,IRA contributions are - ANSWER fully deductible regardless of income if the taxpayer is
not covered by any other qualified plans.
Factors to consider when it comes to important revenue bonds - ANSWER debt service
coverage and management
The over-the-counter market is a - ANSWER negotiated market. Within it, market makers
are broker/dealer firms that provide a source for stock that customers wish to buy and a
repository for stock that customers wish to sell.
The research analyst conflict of interest rules were mandated by - ANSWER
Sarbanes-Oxley Act.
he symbol "ss" does not designate "short sale." It is used to identify stocks traded -
ANSWER in 10-share units.
This is a put spread created at a credit of 2.75. To calculate the breakeven on a put
spread, - ANSWER subtract the net premium from the higher strike price [in this case,
35 − 2.75 = 32.25].
The penny stock rules require that registered representatives-ANSWER provide
disclosure information to all penny stock buyers which customers must sign. In addition,
they must determine suitability based upon financial information investor experience
and objectives supplied by the buyer. If an investor is not considered an established
customer they must also sign a suitability statement.
SIPC applies only to, what doesn't SPIC apply to - ANSWER accounts holding securities;
commodities accounts are not covered.
When a put is exercised, the cost of acquisition is - ANSWER the cost that the writer has
to pay - strike price - less the amount of premium the writer originally received. The date
of acquisition is the trade date in exercising the option.
, A LEAPS contract expires in - ANSWER over one year. When a LEAPS expires worthless
the purchaser realizes a long-term capital loss in the amount of the premium.
Breakeven for short stock-short put - ANSWER is short sale price plus premium
A tombstone ad lists the - ANSWER syndicate manager(s) in bold print all syndicate
members in smaller print. Selling group members do not appear on the tombstone.
Sallie Mae is the nickname for the Student Loan Marketing Association, which - ANSWER
does not issue mortgage-backed securities
The underwriters' agreement, also known as the - ANSWER syndicate letter, is signed
by representatives of all members of the syndicate and provides for a joint account for
selling newly-issued securities.-Within the context of a firm commitment underwriting,
under which document are the responsibilities and liabilities of each firm outlined?
smallest percent of the underwriting spread. - ANSWER syndicate manager's fee i
he term "at parity" means the - ANSWER premium equals the intrinsic value that occurs
for an in-the-money option prior to expiration when the time value has eroded. An 80 put
is in-the-money by 2 points (the premium) when the underlying stock is trading at 78.
Nonrecourse loans for real estate limited partnerships are - ANSWER included in the
limited partners cost basis. Thus, the loans inflate the partners original cost basis by the
amount of the partner's debt liability for the loan.
Traditionally, municipalities get most of their revenues from - ANSWER property taxes
(ad valorem taxes).
User charges would be used to service - ANSWER revenue bonds.
When is the minimum margin requirement never waived - ANSWER The $2,000 minimum
is never waived for short sale margin requirements. If the short sale calculation is less
than $2,000 ($1,800 in this case) the customer is still required to deposit the $2,000
minimum.
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