Series 7 Exam; Series 7 Study Guide Lessons and Information

Series 7 Study Guide Lesson 5

This is  Series 7 Study Guide Lesson 5 the first episode covering fixed income investments. They are different from equities. I've always told people that there are only two types of investments in this world. There's equity which is the owners and there's debt which are the loaners. The owners and the loaners - these are the only two types of investments.

Wall Street comes out with all sorts of arcane strategies, but when it really comes down to it you're either a lender or an owner. Now, you have options which are speculations and you have commodities that are speculations and both can offer hedges which can protect your securities or protect your portfolio sometimes, but not all the time. But these are not investments; these are different strategies that you use as an investor to do other things with your portfolio.

But there are really only two types of investments. There's equity, and we've had three episodes of equities. We’ve had common stocks, we’ve have preferred stocks and then we've had special securities which covered rights warrants and ADRs (American Depository Receipts). This is the first one that's really specifically dealing with fixed income investments.

When you buy a fixed income investment, it has a stated par value. We’ve talked about this in common and preferred stocks. But in fixed income investments this is the face value of the bond, or the Ginnie Mae, or the Fannie Mae, or the government bond, or the government bill, or the government note. These are all fixed income investments, but they all come with a par value, a stated maturity value. This is what you're going to get when it matures. This is assuming that you're buying a bond or fixed income investment in a company that can actually pay off the bond. In the case of government bonds, they are considered risk-free. It's the only risk free investment out there. Now, we could get into a big discussion on that, but were not going to because what’s safe is a matter of interpretation.

Par value or maturity value is what they (fixed income investments) will mature at. They come with a stated interest rate which is stated on the par value. But there’s an exception to this and that is the zero coupon bonds. They are a special case and we’ll be talking about those. There's also a stated maturity value. This is a date when you get back your par value or your maturity value on the fixed income investment.

There are a few other things that can be added into fixed income investments. These are call features just like in preferred stocks. Fixed income securities have call features or may have call features. The exception that you can usually count on are government bonds. US government bonds have no call features. They may have sinking funds which are simply a portion of money set aside every year to buy back the bonds. These are usually found in municipal fixed income investments or municipal bonds.

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Series 7 Study Guide Lesson 4

In this Series 7 Study Guide Lesson 4 we’ll be talking about some different types of securities which are called special securities in financial listings. These include warrants, rights, which we’ve talked about a little bit in the common stock section and ADRs which stands for American depository receipts.

First of all, warrants are basically rights to purchase stock at specific prices that are long-term in nature. They differ from rights which tend to be short term in nature. A warrant may be issued by a company simply to raise money by selling the right to buy the common stock at a certain price. It doesn't appear on the balance sheet as equity, it is simply a warrant. Now, in calculating the earnings per share fully diluted they will take warrants into effect. But for the most part it's sort of like free money to a corporation that issues warrants. If you issue warrants and you sell these warrants to the public, you get a certain dollar amount for the warrant. Now, if at some point in time the stock underlying that warrant rises to a certain point to make that warrant valuable and people convert it into stock, then the company gets the additional equity from the purchase of the stock.

Warrants are used as basically an enticement to people to start watching the stock and basically a warrant is a long term option to buy the stock at a specific price. Warrants quite often are attached to the sale of stock as a kicker or teaser, or a sale of a bond, or a sale of a preferred stock. It can be attached pretty much to anything. When they do that it’s called a unit. You might for instance get one common share and one warrant to buy a common share at the price of the common stock plus let's say a dollar too. For instance, a company issued some stock at $30 a share. They might attach to that stock issue a warrant or a right to buy an additional share of stock at $35 per share. This would be what is called a unit. This way, people would buy the stock. Warrants can be traded on their own and you will see listings for warrants in the financial listings of securities of negotiable securities and the financial pages. .....

 

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Series 7 Study Guide Lesson 3

This is the Series 7 Study Guide Lesson 3, in this episode were going to talk about preferred stock. This is a little different than common stock because it has a par value that actually means something. So preferred stock has a preference over common stock. Now there are a lot of different types of preferred stocks out there. There's cumulative preferred, noncumulative preferred, convertible preferred and a few others but we’re not going to get into any more than that.

A preferred stock is issued with a par value. And the par value is the value of that stock in the event of a dissolution. Before the common stockholders get anything, preferred stockholders would get back 100% of this par value on that stock before the common stockholders would get anything. They may not get back 100%. They may get back whatever is left over after the creditors which are senior to the preferred stockholders get first. So it all depends on your hierarchy in the liquidation or dissolution of the company.

We’re going to get over some terms. We’ll just basically define some terms and talk about what those terms mean. When a preferred stock is issued it is considered a senior security over common. Debt is senior over preferred stock. The preferred stockholder stands above the common stockholder, but the debt holder stands above the preferred stockholder.

When a preferred stock is issued, it’s typically issued at let's say $100 par value. If you look at a preferred stock sheet, it may say preferred stock $100 with 10 percent and that 10% is the dividend that is paid on a preferred stock. Let's say a stock has a par value of a hundred dollars and a percentage interest rate or an interest rate of 10%, the holder of that preferred stock would expect to receive $10 per year. That's the dividend rate on the preferred stock. Most dividends on preferred stocks are paid on a semiannual basis and remember in common stocks most dividends are paid on a quarterly basis. However, that's not a hard and fast rule. Some preferred stocks only pay dividends annually. You need to look at the information for the specific preferred stock to determine how often it pays dividends. Also, some preferred stocks pay dividends on a quarterly basis. So there’s no hard and fast rule for when dividends are paid on preferred stocks.

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Series 7 Study Guide Lesson 2

This is series 7 study guide lesson 2 and this is the first episode where were going to really get into the meat and potatoes of the basics of the securities industry and securities. In this episode, we're going to be talking about common stock. First of all, if you look at company's balance sheet there's going to be an asset, a liability and an equity section.

The common stock side of the equation is in the equity section. Common stock is the equity of a company. If you're a common stockholder, you own a portion of the company. Common stock is issued by the corporation and it’s also issued by investment companies. When a company goes and does the charter for itself, it will register with the state. In the state registration which is found in the articles of incorporation, it will state that the company is authorized to issue X number of shares. It will usually state what is the par value of those shares are. It can be a par or no par stock. Typically, a company will have either a no par stock which means there is no intrinsic value to the stock or a very low par value.

Par value is simply the stated value of the company stock on the company's balance sheet. For instance, let's say a company issues stock at $10 a share yet the par value on the stock is one dollar. On the balance sheet you will see issued stock at par at one dollar and paid in excess of par value of nine dollars. This is very common. The par value is set low primarily because of the different state regulations involving the taxation of corporations. Some states charge a tax based on the par value of the stock. It really depends on the state where the company is operating in and as to what they can and cannot do. The state in which a company is chartered also determines what they can and can't do.

If you have a multiple-choice question which asks what would be one reason why you have a low par value on a stock. The answer to that is because the taxation of the various states might tax the par value at a certain rate and by lowering the par value it reduces the tax to the corporation.

 

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Series 7 Study Guide Lesson 1

This is the Series 7 Study Guide lesson 1 audio lessons for the FINRA Series 7 Exam, Third Edition. In this Series 7 Study Guide Lesson 1, we’re going to be talking about an overview of the Series 7 Examination, what it entails, what subjects you need to study, and just general information about the Series 7 Exam. This is basically the exam that you need to take in order to work in any area of sales in the securities industry. This is a general exam, and it’s sort of the beginning exam for your financial career working for a broker-dealer or another financial institution. The basic outline of this course is to try to cover all the topics in a timely manner so that you have a good overview for studying for the Series 7 Examination.

In order to take the examination, you need to be sponsored by a FINRA member firm or other applicable self-regulatory member firm. You cannot just go and take the Series 7 Examination on your own. You basically need to be hired by a FINRA firm, and as part of your employment, they may expect you to pass the Series 7 Examination. That’s the way it was. When I went to work in the brokerage industry so many years ago, I was hired; I was expected to pass the Series 7 Examination. They gave me a couple of months to study for it. I took the examination, and if I had not passed, I would've been fired immediately. Actually, I think they gave me two tries to pass the examination, and that point in time, they wouldn’t have kept me. So basically, you need to have a firm that is sponsoring you to take the examination.......

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This is a repost of the first lesson in the series of lessons on options.

The full course is available at https://www.series7podcast.com

Series 7 Study Guide 3rd Edition Lesson 16 options pt. 1 2017 Option Ratio Strategies including Combinations

This episode covers Option Ratio Strategies including Combinations

I decided to do one more podcast on options and this is just sort of going to be a cleanup of a few other miscellaneous things you may need to know for the series 7 exam on options. Now, the first one that you may be call on and there may be a question or two is called ratio strategies. And I don't even know why they do this, what's the point of this, but basically here's a very simple example and this is probably sort of question you may have on the series 7.

Let's say you own 100 shares of XYZ stock and you buy that stock at $40 a share, and immediately you write a call on that stock. So you’ve written the covered call on XYZ stock and let’s say you use a strike price of $40 a share as well. Well in addition to that one call, you might write two calls. Why would you do that? I don’t know but it's one of these, in my opinion, stupid things that they cover in the series 7. Well the bottom line is you’re only covered to your loss to the extent of the one call you write. You’ve actually written two calls against the position of 100 shares so you have unlimited exposure on the one naked call you’ve written. If you really want to do that, why don’t you just write a naked call? And that’s the whole point of it. I guess if the stock goes down, you’re protected to the point of the premium you gathered by writing the two calls and those calls will expire worthless. But why would you buy a stock you think is going to go down to begin with? If the stock goes up, it will be called away from you. And not only will your stock be called away from you but you'll be at an unlimited risk position on the second option you’ve written. You could do a number of different ratio strategies but the bottom line on most ratio strategies is a limit - your downside to the premium you've collected but there's unlimited potential loss on the upside. I think that's really all I’m gonna cover on ratio strategies.......... This episode covers Option Ratio Strategies including Combinations

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Outline

Videos

For full 58 lesson bundle through Gumroad :

In addition to being able to use the Gumroad App to listen do the lessons on your smart phone this series of lessons also consists of 58 individual lessons in MP3 format mp3 files of lessons 1-58 covering:

Series 7 Study Guide Audio Lessons 1 to 58

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Insurance Exam audio Lessons Review pt 1

This is Insurance Exam audio Lessons Review pt 1 of 4 review lessons in the full audio course. To prepare for the exam you should make sure that you listen to all of the Insurance Exam audio Lessons Review lessons

This Insurance Exam audio Lessons Review lesson is the final lesson in the 5 part sample of the full 26 lesson course. I hope it has been useful for you in your studies.

The insurance exam for life and health is an additional tests that you will need to pass either before or after you pass a series 7 examination in most cases.

The insurance exam will be most likely the life/health examination this will allow you to present your clients with insurance offerings such as annuities and other insurance products. The insurance exam is a state issued examination while each state has its own examination most of the material from state to state is very similar. There may be some small additions or changes in your state insurance exam but this audio series of lessons should cover most if not all of what you will need to master in order to pass the insurance examination in your state.

Other examinations you may need to pass would include the series 63 which is another state examination for the series 67. I have audio lessons already for the series 63 examination as well.

I have put together a series of 26 audio lessons and four review lessons to help you in the preparation for this examination. This is a sample of the lessons for the series of lessons. If you find this useful and valuable you might consider purchasing the full series of lessons below is a link.

 

Insurance exam audio lessons Life Health Study Guide

Table of Contents

Lesson 1_Introduction to the Course

Lesson 2_Introduction to Insurance Part I

Lesson 3_Introduction to Insurance Part II

Lesson 4_Insurance Regulation

Lesson 5_Insurance Law

Lesson 6_Underwriting Basics

Lesson 7_Group Insurance

Lesson 8_Policy Issuance and Delivery

Lesson 9_Types of Life Insurance

Lesson 10_Insurance Provisions

Lesson 11_Riders and Waivers

Lesson 11_Riders and Waivers

Lesson 13_Group Life Insurance

Lesson 14_Retirement Plans

Lesson 15_Introduction to Health Insurance

Lesson 16_Introduction to Health Insurance Part II

Lesson 17_Health Insurance Policy Underwriting and Delivery

Lesson 18_Health Insurance Policy Provisions Part II

Lesson 19_Disability Income Insurance

Lesson 20- Disability Income Insurance Part II

Lesson 21_Medical Expense Insurance

Lesson 22 Major Medical Insurance

Lesson 23_Group Health Insurance

Lesson 24_Social Health Insurance

Lesson 25- Social Health Insurance Part II

Lesson 26- Long Term Care

Review Lesson 1

Review Lesson 2

Review Lesson 3

Review Lesson 4

Review Lesson 5

Total Length 12 hours 6 seconds

 

Here is a link to all our study products.

All podcasts produced and content at https://www.series7podcast.com are copyrighted. You may use the podcasts for personal use but you may not rebroadcast, or offer for sale, or use this content in any other manner without written permission.

©2017 Franz Amussen, All Rights Reserved

Life Health Insurance Exam Audio Lessons on- disability

Life Health Insurance Exam Audio Lessons on disability insurance is this weeks topic in the Life Health Insurance Exam Audio Lessons there are several more lessons on disability insurance which you will need to learn as well

The insurance exam for life and health is an additional tests that you will need to pass either before or after you pass a series 7 examination in most cases.

The insurance exam will be most likely the life/health examination this will allow you to present your clients with insurance offerings such as annuities and other insurance products. The insurance exam is a state issued examination while each state has its own examination most of the material from state to state is very similar. There may be some small additions or changes in your state insurance exam but this audio series of lessons should cover most if not all of what you will need to master in order to pass the insurance examination in your state.

Other examinations you may need to pass would include the series 63 which is another state examination for the series 67. I have audio lessons already for the series 63 examination as well.

I have put together a series of 26 audio lessons and four review lessons to help you in the preparation for this examination. This is a sample of the lessons for the series of lessons. If you find this useful and valuable you might consider purchasing the full series of lessons below is a link.

 

Insurance exam audio lessons Life Health Study Guide

Table of Contents

Lesson 1_Introduction to the Course

Lesson 2_Introduction to Insurance Part I

Lesson 3_Introduction to Insurance Part II

Lesson 4_Insurance Regulation

Lesson 5_Insurance Law

Lesson 6_Underwriting Basics

Lesson 7_Group Insurance

Lesson 8_Policy Issuance and Delivery

Lesson 9_Types of Life Insurance

Lesson 10_Insurance Provisions

Lesson 11_Riders and Waivers

Lesson 11_Riders and Waivers

Lesson 13_Group Life Insurance

Lesson 14_Retirement Plans

Lesson 15_Introduction to Health Insurance

Lesson 16_Introduction to Health Insurance Part II

Lesson 17_Health Insurance Policy Underwriting and Delivery

Lesson 18_Health Insurance Policy Provisions Part II

Lesson 19_Disability Income Insurance

Lesson 20- Disability Income Insurance Part II

Lesson 21_Medical Expense Insurance

Lesson 22 Major Medical Insurance

Lesson 23_Group Health Insurance

Lesson 24_Social Health Insurance

Lesson 25- Social Health Insurance Part II

Lesson 26- Long Term Care

Review Lesson 1

Review Lesson 2

Review Lesson 3

Review Lesson 4

Total Length 12 hours 6 seconds

 

Here is a link to all our study products.

All podcasts produced and content at https://www.series7podcast.com are copyrighted. You may use the podcasts for personal use but you may not rebroadcast, or offer for sale, or use this content in any other manner without written permission.

©2017 Franz Amussen, All Rights Reserved

Insurance exam audio lessons sample lesson part 3

I now offer insurance exam audio lessons. This sample lesson is on Underwriting

The insurance exam for life and health is an additional tests that you will need to pass either before or after you pass a series 7 examination in most cases.

The insurance exam will be most likely the life/health examination this will allow you to present your clients with insurance offerings such as annuities and other insurance products. The insurance exam is a state issued examination while each state has its own examination most of the material from state to state is very similar. There may be some small additions or changes in your state insurance exam but this audio series of lessons should cover most if not all of what you will need to master in order to pass the insurance examination in your state.

Other examinations you may need to pass would include the series 63 which is another state examination for the series 67. I have audio lessons already for the series 63 examination as well.

I have put together a series of 26 audio lessons and four review lessons to help you in the preparation for this examination. This is a sample of the lessons for the series of lessons. If you find this useful and valuable you might consider purchasing the full series of lessons below is a link.

 

Insurance exam audio lessons Life Health Study Guide

Table of Contents

Lesson 1_Introduction to the Course

Lesson 2_Introduction to Insurance Part I

Lesson 3_Introduction to Insurance Part II

Lesson 4_Insurance Regulation

Lesson 5_Insurance Law

Lesson 6_Underwriting Basics

Lesson 7_Group Insurance

Lesson 8_Policy Issuance and Delivery

Lesson 9_Types of Life Insurance

Lesson 10_Insurance Provisions

Lesson 11_Riders and Waivers

Lesson 11_Riders and Waivers

Lesson 13_Group Life Insurance

Lesson 14_Retirement Plans

Lesson 15_Introduction to Health Insurance

Lesson 16_Introduction to Health Insurance Part II

Lesson 17_Health Insurance Policy Underwriting and Delivery

Lesson 18_Health Insurance Policy Provisions Part II

Lesson 19_Disability Income Insurance

Lesson 20- Disability Income Insurance Part II

Lesson 21_Medical Expense Insurance

Lesson 22 Major Medical Insurance

Lesson 23_Group Health Insurance

Lesson 24_Social Health Insurance

Lesson 25- Social Health Insurance Part II

Lesson 26- Long Term Care

Review Lesson 1

Review Lesson 2

Review Lesson 3

Review Lesson 4

Total Length 12 hours 6 seconds

 

Here is a link to all our study products.

All podcasts produced and content at https://www.series7podcast.com are copyrighted. You may use the podcasts for personal use but you may not rebroadcast, or offer for sale, or use this content in any other manner without written permission.

©2017 Franz Amussen, All Rights Reserved