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Series 7 UPDATED Exam Questions and CORRECT Answers conversion ratio (aka conversion rate) - Ans The number of shares of common stock per par value amount that a holder would receive following a conversion of a convertible bond or preferred share. (aka conversion (aka conversion rate)rate) Equity Linked Notes (ELNs) - Ans Don't be fooled by the name equity linked. These are debt securities, not equity. When comparing alternative investments (debt or equity) to traditional ones, the f...

Series 7 Exam Guide Questions and CORRECT Answers The minimum maintenance in a short account is - Ans 30% of the market value or $5 per share (whichever is greater) for stocks trading above $5. For stocks trading below $5, the minimum maintenance is - Ans $2.50 per share or 100% of market value (whichever is greater). Duration measures - Ans a bond's price volatility by weighting the length of time it takes for a bond's cash flow to pay for itself

Series 7 Benchmark UPDATED Exam Questions and CORRECT Answers Principal payments of a collateralized mortgage obligation (CMO) are: A: paid in full as a limp sum at maturity B: paid in equal installments over the life of the CMO C: paid in varying amounts over the life of the CMO D: paid in full when the CMO is refunded - Ans C: paid in varying amounts over the life of the CMO

What information must be disclosed by a broker dealer in a research report? - 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 - Unsecured bonds, secured by the full faith and credit and no specific collateral of the corporation. Section 457 Plan - Retirement plan used by public sector workers. Similar to 4...

The minimum maintenance in a short account is - 30% of the market value or $5 per share (whichever is greater) for stocks trading above $5. For stocks trading below $5, the minimum maintenance is - $2.50 per share or 100% of market value (whichever is greater). Duration measures - 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 with differing coupon rates have identical maturities, the one with the lower coupon...

Cash flow analysis - The IRS will generally consider a direct participation program to be an abusive tax shelter unless the program can show a profit motive. A popular method of measuring the economic viability of a DPP is $15 million @8% due in 10 years, callable at 101 - DERF Corporation has a significant amount of cash on hand. The chief financial officer (CFO) has suggested to the chief executive officer (CEO) that it might be wise to pay off $10 million of the company's outstand...

Accretion - Adjustment of the difference between the price of a bond bought at an original discount and the par value of the bond Ad Valorem - Latin Term meaning according to value and referring to a way of assessing duties or taxes on goods or property. Advance Refunding - Sale of New bonds in advance, usually by some years, of the first call date of the old bonds. Affiliated Person - Individual in a position to exert direct influence of the actions of a corporation Agency Securitie...

Which of the following would have the greatest impact on a company's "alpha" coefficient? A. A major change in market sentiment B. A major change in the Standard and Poor's 500 Index C. A major change in the corporation's capital structure D. A major change in the Wilshire 5000 Index - C Corporate bonds are usually: I serial bonds II term bonds III quoted on a percentage of par basis IV quoted on a yield basis

Series 7 Exam: 1001 Practice Questions and Answers For Dummies 2nd Edition 2024 with complete solutions Series 7 Exam: 1001 Practice Questions For Dummies® Table of Contents Cover Title Page Copyright Introduction What You’ll Find Beyond the Book Where to Go for Additional Help Part 1: Practicing the Questions Chapter 1: Underwriting Securities The Problems You’ll Work On What to Watch Out For 1–22 Bringing New Issues to Market 23–47 Agreement Among Underwriters 48–64 Re...

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