The Major Topics of Series 7 Practice Exam
No matter what training methods you choose for series 7 practice make sure that if your test preparation strategy is built correctly you will not experience any difficulties during the final test. In order to help students pass series 7 practice exam successfully we have decided to tell you about its major topics and questions in brief. We sincerely hope that this small guide will be especially helpful for any student and make a huge contribution to your series 7 practice process. Get familiar with all these topics attentively and just chose the best study materials to prepare for an upcoming exam.
As a rule, series 7 practice exam always includes the topic of Fiduciary Accounts. Thus, you may be asked questions about Principal Receipts, Sales or Other Dispositions, Principal Distributions to Beneficiaries, Principal Balance on Hand, Information Schedules, Income Receipts, Income Disbursements, Income Distributions and Proposed Distributions. That’s why it is expedient to include all of them in your series 7 practice training.
Another topic that is frequently raised during the test of series 7 practice exam is hypothecation. You should know that being in the business of trading stockbrokers don’t lend money - banks do this and secure the actual loan. It should be noted that a pledge of up to 140% of the debit balance can be required and afterwards is driven down the amount of equity in the margin account.
The main part of series 7 practice exam questions is dedicated to Providing Customers with Investment Information and Making Suitable Recommendations. Some of them will be about Evaluating Customer Needs and Objectives. That’s why we would recommend such topics as Short Selling, Fannie Mae, Certificates of Deposit, Cyclical Industries, Short Interest Theory, New York Stock Exchange, Benefits of Stock Ownership, Dividends, Book Value vs. Market Value, Foreign Mutual Funds, 401k Plans, Stock Certificate and American Depositary Receipt to be included in your series 7 practice preparations.
During series 7 practice exam you will also have a lot of questions on Understanding and Explaining the Securities Markets’ Organization and Participants to Customers, Monitoring Economic and Financial Events, Performing Customer Portfolio Analysis and Making Suitable Recommendations. Thus, it is very important to study the topics of Combination Privilege, Stock Split, Margin Trading, Authorized Stock, Insider Trading, Warrants and Company’s Net worth.
It is also important for students to know the exact definitions and have a clear understanding of such important terms as Collateralized Mortgage Obligation – CMO, Defensive Investment Strategy, Direct Participation Program – DPP, Liquidity Risk, No-Par Value Stock, Options Clearing Corporation – OCC, Repurchase Agreement – Repo, Systematic Risk and U.S. Treasury. All these important conceptions should lay in the basis of any series 7 practice strategies.
It will be enough for you to know all the topics described above quite well in order to cope with series 7 practice exam on the first attempt. So, if you answer at least 70% of questions your test results will be satisfactory. For people who have the lack of time to attend series 7 practice classes we would recommend to consider video lectures offered by Series7Review firm. No doubts that these online test preparation solutions are cost-effective and you will never regret about using them!
