Kaplan Series 7 General Securities Representative Exam License Exam Manual (7th Edition)
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Short, focused paragraphs with numerous graphics and exercises help students learn faster and retain critical information for the Series 7 FINRA exam
price of the stock? A. B. C. D. $12 $16 $25 $40 7. A convertible bond is purchased at its face value and convertible at $125. What is the conversion ratio? A. B. C. D. 2 8 12 20 Quick Quiz answers can be found at the end of the Unit. 2. 6 US Government and Agency Securities The US Treasury Department determines the quantity and types of government securities it must issue to meet federal budget needs. The marketplace determines the interest rates those securities will pay. In
payments are derived from or backed by a specific pool of underlying assets. These pools of assets can include expected payments from different types of loans such as mortgages, as is the case with CMOs, auto loans, or other types of loans. In some instances, asset-backed securities can pool expected cash flow from credit cards, leases, or even royalty payments. Pooling the assets into financial instruments allows them to be sold to general investors more easily than selling them individually.
weighting and emphasis on the actual exam. You will not receive rationales for the answers you select, nor will you receive immediate feedback if you answered a particular question right or wrong as you take the exam. You should complete these exams while observing the time limits for the actual exam. Upon completing the exam, you will receive a diagnostic report that identifies topics for further review (3–4 hours per Exam). Series 7 LEM.indb 16 3/7/2011 9:16:02 AM Introduction xvii How
that of the four major rates—prime, discount, fed funds, and call loan—the prime rate is the highest and the fed funds rate is the lowest. From high to low, they are ranked as follows: prime rate, call loan rate, discount rate, and fed funds rate. ■■ Federal Funds Rate—This rate is the interest rate charged on reserves traded among member banks for overnight use in amounts of $1 million or more. The federal funds rate changes daily in response to the borrowing banks’ needs and is considered the
is a loan to a company in exchange for interest income and the promise to repay the loan at a future maturity date. It does not confer ownership. Stocks and bonds are normally purchased and sold on a stock exchange or in the over-the-counter (OTC) market. A stock exchange, such as the New York Stock Exchange (NYSE), is an auction market where buyers and sellers are matched by a specialist (Designated Market Maker) who maintains a fair and orderly market for a particular set of stocks. The OTC