Series 7 Exam Tip

Collateralized debt obligations or CDOs are securities backed by pools of underlying debt instruments. Similar to collateralized mortgage obligations or CMOs, CDOs  represent an interest in the underlying pool of of securities and can be back by such things as a pool of auto loans or credit card debt portfolios.  As the owners of the automobiles and holders of credit cards with an outstanding balance make payments, the payments flow into the underlying pool and are then distributed on a predetermined basis to the holders of the CDOS. CDOs are generally to sophisticated for individual investors and are more appropriate for institutional investors such as hedge funds and other large investors who can understand the risks associated with the underlying portfolios. Take some free series 7 exam questions on our site at:

http://www.securitiesce.com/web/pages/series7/index.php

Series 7 Exam Question

We have been asked a number of questions lately regarding so called "dark pools". Dark pools are alternative trading venues or systems where large institutions can execute orders anonymously without divulging to the general market the fact that the institution is  buying or selling the security in question.  These systems have allowed the institutions to purchase or sell securities without impacting the market price for the security as a result of the market watching the institution's orders being entered in a traditional market place such as the NASDAQ or the NYSE. Regulation ATS has required many of these alternative trading systems to register as broker dealers or ECNs.

Take some free series 7 exam questions on our site at:

http://www.securitiesce.com/web/pages/series7/index.php