FCO Questions on the series 7 exam

An FCO question for the series 7 exam

A British pound 155 call covering 12,500 pounds has a current premium of 2.50 and the British pound is currently quoted at 149.27. How much would a person wishing to purchase the option pay ?

A) $149.27
B) $3,125
C) $31.25
D) $312.50


To determine the premium take the quote of 2.50 and move the decimal two places to the left .025 and multiply it by the amount of currency covered by the contract = .025 X 12,500 = $312.50.

take some free series 7 questions on our site at:
http://www.securitiesce.com/web/pages/series7/index.php

Do I Need a Sponsor To Take The Series 65 Exam?

No you may self sponsor for the series 65 exam. You will need to obtain the required information from NASAA.org and fill out and submit the required form U 10. Take some free series 65 test questions on our site at:

http://www.securitiesce.com/web/pages/series65/index.php

When does the 24 month window start?

The 24 month window to get back in the industry begins with the termination date that is filed with the NASD on your U5. When your firm files the U5 they will state a termination date. You must become associated with a member firm prior to the 2 year anniversary of your termination date

Can I just do the questions on the exam software and pass the test?

It is really surprising how many times we still get this question. And it is proof that old tales die hard! There were a certain number of people who 20-30 years ago past the various securities exams by attending a class and just doing the practice exams that they had. This is not the case any longer. You can not pass the test by just taking practice questions! There are two components to all the securities exams a knowledge component provided by the book and an application component provided by the software. Do not look for short cuts! Ensure that you pass the exam on your first try by reading the book and doing practice questions. Visit our site and select the textbook and software package for your exam and pass on the first try at: www.securitiesce.com

A Series 24 Sample Question

A corporation is making a public offering of one million shares and has designated that 200,000 shares be directed to employees of the company. What will the total amount of shares outstanding be as a result of this offering?

A) 1,200,000
B) 800,000
C) 200,000
D) 1,000,000

D) 1,000,000 shares will be outstanding as a result of the offering. Stock purchased by employees is still outstanding stock

Take some more free series 24 sample questions on our website at:

http://www.securitiesce.com/web/pages/series24/index.php

What is the Uniform Securities Act?

The Uniform Securities Act is especially important for students preparing for the series 63 exam and 66 exam. The Uniform Securities Act provided model legislation or a template for all the states to use when drafting state securities laws. The Uniform Securities Act made it much easier for broker dealers and issuers to conduct business on a national basis. Take some series 63 sample questions on our site at:

http://www.securitiesce.com/web/pages/series63/index.php


Take some series 66 sample questions on our site at:
http://www.securitiesce.com/web/pages/series66/index.php

If I have my series 6 and I want to sell stocks do I have to take the series 7?

A student recently asked this question. To answer the students question the answer is no. You do not have to take the series 7 to sell stock. The student may take the series 62 exam and will be able to sell corporate securities including stocks and bonds. This is a good alternative to the series 7 exam for the person who does not need to transact business in options or municipal securities. Take some free series 62 questions on our website at: http://www.securitiesce.com/web/pages/series62/index.php

Why do I need to take my series 55 Exam?

The series 55 limited equity trader exam is usually required for traders who trade equities or convertible debt on an equity or agency basis. Most of the people who take this exam are sitting on a trading desk or are professional traders trading on increased leverage at a trading firm. The series 7 exam is a pre requisite to the series 55 exam. Take some free series 55 questions on our site at: http://www.securitiesce.com/web/pages/series55/index.php

If I have my series 6 license can I take the series 24 exam?

If I have my series 6 license can I take the series 24 exam?

No if you have a series 6 license you may take the series 26 exam to become an investment company principal. You can not take the series 24 exam to become a general securities principal. The series 7 or series 62 exam is the pre requisite for the series 24 exam.

How is the series 62 exam different from the series 7 exam?

The series 62 exam can almost be thought of as a series 7 light. It has no option, no municipal bond, and no mutual fund questions on the exam. That’s the good news about the series 62 exam. As you can imagine because these sections are not on the exam a series 62 limited representative can not conduct business in these products. It is a good exam to take for the person who just wants to add corporate securities to their business or engage in private placements. Take some free series 62 questions on our site at:

http://www.securitiesce.com/web/pages/series62/index.php

Buy The Hedge

Student who are taking the series 7 or series 65 exam are often asked questions relating to hedging positions with options. Investors who want the most protection should always buy the hedge. For investors who are long stock buying puts would provide the most protection if the stock were to fall. For investors who are short stock, buying calls would provide the most protection if the stock were to rise. Take some free series 7 questions on our site at: http://www.securitiesce.com/web/pages/series7/index.php


Take some free series 65 questions on our site at:
http://www.securitiesce.com/web/pages/series65/index.php

Industry News From BrokerHunter.com

Recent industry news from our partners at BrokerHunter.com

Overall:

U.S. firms cut back their hiring in September to the slowest pace since last year's terrible hurricane season, government data showed. U.S. nonfarm payrolls rose by an estimated 51,000 in September, the Labor Department said. The increase in payrolls was lower than the 123,000 rise expected by Wall Street economists surveyed by MarketWatch.
However, July and August payrolls were revised higher by a total of 62,000 jobs mitigating some of the weakness seen last month. The unemployment rate also fell to 4.6% from 4.7%.
"This pace of jobs growth is consistent with a soft land for the economy with second half growth in the range of 3 percent," according to Peter Morici, professor at the University of Maryland School of Business and former Chief Economist at the U.S. International Trade Commission.
"Modest growth, constrained wages, steady interest rates and falling energy prices will be good for corporate profits and stock prices. The stock market rally should continue, and recent Big Cap stock gains should spread into the broader market."
The Securities Industry:

Last month the SI lost 2,300 jobs as the malaise in hiring continues for a fifth straight month, as total employment continues to drift from the high point in April of this year. This brings the total hiring growth rate for the year-to-date to just a bit over 1%. Should this trend continue through December, this would make 2006 the slowest hiring year since the jobs recovery begin 3 years ago.

Demand continues, as always, for producers with transferable assets. The hiring trend reflects new hiring in the Industry, especially trainees and for certain salaried positions.

Should I take my series 6 & 63 on the same day?

A lot of students ask this question. Our answer has always been the same NO WAY! Preparing for both exams is hard enough let alone trying to do them in one day. If you have heard the advice to take the series 6 & 63 in the same day most likely it was given to you by someone who took the series 63 before 2000. The series 63 exam was made more challenging in 2000 and again in 2002. Our advice, take the series 6 exam first pass it, relax for a week, then hit the books for the series 63 exam. Take some free series 6 and series 63 exam questions on our site at www.securitiesce.com

The Blue Duck

When taking any NASD exam often times you will have three answers that are similar and one that is different. The Three red ducks are the answers that are similar and the blue duck is the answer that is different. When you see this type of relationship between the answers it’s a good idea to take a look at the answer that is different. If three answers say that the action described in the question is permissible and one answer says its prohibited, the action may very well be prohibited. Take some free questions on our site at www.securitiesce.com

A series 65 Question

An (IAR) Investment Adviser Representative has reviewed various short term instruments and has decided on unsecured short term money market instruments issued by a blue chip corporation with a maturity of less than 270 days. This would result in an investment in:

A) Treasury Bills
B) Commercial Paper
C) ADRs
D) Certificates of Deposit

B) The question clearly describes commercial paper. While T Bills are money market instruments that are not issued by a corporation. Take some free seires 65 questions on our website at:www.securitiesce.com/web/pages/series65/index.php

Will I have enough time to finish my series 7 exam?

The short answer to this question is YES! Most people find that they have more than enough time to finish their series 7 exam. The series 7 like all other NASD and NASAA exams are not speeded exams. A speeded exam is one that is designed to give only the brightest people enough time to finish the exam. The series 7, series 65 and all other exams are designed to give everyone enough time to complete the exams. This is not to suggest that you should spend 10 minutes on a question but you will have enough time to complete the tests! Take some free series 7 or series 65 questions on our site at www.securitiesce.com

Do I Need To Retest?

A student called in and said this the other day:

I was with a brokerage firm back in 2003 is there any grace period to the 24 month rule or do I need to take my series 7 all over again? I can’t tell you how often we hear this exact scenario. But if you are out of the business for more than 24 months you MUST re qualify by taking your series 7 again. The clock starts ticking on the 24 month window when you are U5’d from your firm. So make sure that you know the date you left your last firm. This 24 month window applies to any license. Get up to date questions and exam information on our site at www.securitiesce.com

Why Do I Need to Take The Series 63 Exam?

If I have passed the series 7 why do I need to take the series 63? We get this a lot. The series 7 exam allows a registered rep to conduct a general securities business. The series 63 allows a registered rep to conduct business with the public. Currently over 40 states require that an agent pass the series 63 exam in addition to passing their series 6, series 7 or series 62 exams before they are allowed to conduct securities business with state residents. Some exceptions to the series 63 requirement are New Jersey and Florida. Take some free series 63 practice questions on our site at: http://www.securitiesce.com/web/pages/series63/index.php

Series 7 Interest Rate Options

Series 7 students sometimes have issues with price based and rate based options for Treasury Securities. When sitting for the series 7 exam remember that the price based options provide protection or the opportunity for a profit in the opposite direction as the expected move in interest rates. For example when rates rise an investor would want to purchase price based puts or sell price based calls. When trading interest rate options an investor would buy calls and sell puts when interest rates are expected to rise. Take a few free series 7 exam questions on our site at: www.securitiesce.com

Don’t change your answer!

Changing answers on the exam can often lead a student to select the wrong choice. Even worse, second guessing yourself can lead a student to change the correct answer to an incorrect answer. In short your first choice is usually your best choice unless something on the exam definitely clued you in to the correct answer. Take some free practice questions for your exams at www.securitiesce.com

Series 65 Exam Question

Here is an example of a frequent series 65 question

An investment adviser is considered to be adding value if:

A) They are adding theta
B) There are reducing beta
C) They are adding gamma
D) They are adding alpha

An investment adviser is considered to be adding value if they are adding alpha. If an investment adviser adds alpha, they are out performing the expected return of the portfolio for each unit of risk assumed by the portfolio. Take some free series 65 exam questions on our site at: http://www.securitiesce.com/web/pages/series65/index.php

What is a Person?

Students often have difficulty on the Series 63 and series 66 exams remembering that a person is more than just a natural person. A person on the series 63 and series 66 exams is ANY entity that can enter into a legally binding contract. Keeping this in mind will help you remember that corporations, broker dealers, partnerships and associations are persons on the exam. Take some free questions on our site at www.securitiesce.com

Securities Industry Employment On The Rise

Some Good news from our partners at BrokerHunter.com for the securities industry

Overall:

128,000 new jobs were created in August, close to the average for the year and close to what the economy needs to absorb new entrants to the labor force to maintain a low employment rate.

The percentage of industries hiring in August rose slightly to 55.9%.

A couple of key sectors lost ground in August: the manufacturing sector lost 11,000 jobs while the factory workweek fell by six minutes and the retail sector shed 13,500 jobs and has lost 47,000 in the past five months.

The Securities Industry:

This month marks not only 5 years since 9/11, but also 3 years since the beginning of the job recovery in this industry.

The securities sector added a modest 2,100 jobs last month, yet it was enough to bring employment to its highest level since January of 2002. Back then, employment levels were on a steep downward track in the post-9/11 slowdown and would not reach rock bottom for nearly 2 more years.

Since the beginning of the recovery in late '03 we have seen moderate employment growth rates in the 2-3% range. While this is well below the apparently unsustainable 8-10% growth rates seen pre-9/11, it is in line with the job growth rate for the remainder of the economy and has resulted in over 50,000 new jobs in the last 3 years.

What if I have to Guess?

If it comes down to guessing when taking any securities exam your guess should not be the standard old “C” that you may have heard in college or when you were taking the SATs. When it come to a guess on the series 7, series 65 or any of the NASD or NASAA exams, if you have to guess your guess should be the “longest answer” that is the answer with the most words, the choice that travels the furthest across the screen. The reason for this is in many cases a test writer will not write a very long and precise answer unless it is the correct answer. Visit our site at www.securitiesce.com to get some free sample questions.

Pass The Series 24 Exam!

The Series 24 exam continues to challenge students in the areas of trading and market making and in the supervision of investment banking. Series 24 students are encouraged to pay particular attention to theses areas when preparing for the test. If at all possible series 24 students should also try to spend some time on their firm’s trading desk. By viewing the actual trading systems the student will have a better understanding of how the systems work and will be able to visualize how trades actually take place. This has helped many students pass the series 24 exam.

Test Taking Skills

A series 6 student recently called in and asked what he could do to pass his series 6 exam the second time having failed it with a 68. There are two skills required to pass any securities exam. Those skills are a knowledge component and an application of the knowledge component. Most times when a student falls short of passing the test by only a few points the student has the required knowledge to pass the test. In these cases the student may have fallen short in applying the knowledge in the way that the test wants the student to apply the knowledge. Good test taking skills and doing more practice questions can really make the difference for students like this. Take a few free practice questions for the series 6 exam at. www.securitiesce.com Check back soon for some test taking tips.