The eLearning Center for Gatlin Education Services

The Series 7 exam is required by most broker-dealers for their registered representatives. The general Securities Registered Representative license entitles the holder to sell all types of securities products, with the exception of commodities futures (which requires a Series 3 license). This course will prepare you for the Series 7 exam by covering areas tested by NASD. Series 7 serves as a prerequisite for most of NASD’s principal examinations, and is the most comprehensive of the NASD representative licenses.

This course covers the solicitation, purchase, and sale of a broad range of investment products, including stocks, bonds, mutual funds, municipal securities, options and direct participation programs. This course also examines areas such as options, debt securities, taxes, investment banking, financial statements, law, NASD, investment companies, municipal securities, trading, margins, securities analysis, economics, self-regulatory organizations (SROs) and many more.

Each section contains practice quizzes to sharpen test-taking skills. Feedback rationale for each question clarifies key points and improves retention. The course concludes with five practice finals (over 1200 questions) that simulate the actual NASD exam and help to ensure exam readiness. Study emphasis should be placed on the quizzes and final exams; successful completion indicates your progress in preparation for the license exam.

LEARNING OBJECTIVES:
At the end of the course, the student should be able to:
  · Describe the general characteristics of equity securities, which include aspects of stocks and government securities, rights and warrants, computations of interest, yield and price. Learn how to make recommendations to customers.
  · Summarize the economics of the business cycle, effects of inflation, investment analysis, currency markets and exchange rates. Learn about the money market and the sources of economic and business performance data.
  · Distinguish various types of customer accounts and their management by third parties. Learn how and why accounts are closed or transferred.
  · Calculate the required information for margin accounts and learn about short sales.
  · Define trading, which includes types of orders, the consolidated tape and collecting information on stocks and bonds.
  · Identify the general characteristics of municipal securities, their types and marketability. Learn the methods of underwriting and the analysis of bonds.
  · Describe the purpose and types of investment companies, the types of mutual funds and their marketing and the rules and legalities of investment companies.
  · Summarize the purpose of the NASD and the conduct, rules and definition of the Registered Representative.
  · Discuss the standards for public communications and the over-the-counter markets. Learn the purpose and functions of a back office.
  · List securities acts and legislation, the variations in offerings, methods of underwriting and compensations considerations.
  · Examine financial statements, which include components of a balance sheet, their calculations, effects of transactions on the balance sheet and income statements.
  · Learn the taxation concepts for various taxable incomes, tax swaps, gifts, estate taxes and retirement plans.
  · Describe the definition, structure and documentation of direct participation programs and the rights, obligations and restrictions on partners.
  · Identify the characteristics of corporations and limited partnerships.
  · Predict the tax consequences for partners, and the objectives of real estate syndications, oil and gas drilling programs and leasing programs.
  · Define the concepts and terms of options. Understand how to calculate the value of an option position and the use of various strategies. Learn the various types of spreads and options.

TOPICS COVERED:
  · Introduction to the Series 7 Exam
  · LESSON 1: Securities
  · LESSON 2: Economics
  · LESSON 3: Margins
  · LESSON 4: Trading
  · LESSON 5: Municipal Securities
  · LESSON 6: Investment Companies
  · LESSON 7: NASD
  · LESSON 8: Law
  · LESSON 9: Financial Statements
  · LESSON 10: Taxes
  · LESSON 11: Direct Participation Programs
  · LESSON 12: Options