Pass the FINRA General Securities Representative Series-7 Questions and answers with CertsForce

tranche. That’s the term used to describe a separate class within a CMO issue.

specialists. This description defines the function of the specialists.

all of the above. The gross spread (or “underwriting spread”) depends upon all of these factors.

agreement among underwriters. This agreement authorizes the manager to handle the offering. The final contract between the manager and the issuer is the “underwriting agreement”.

low risk. The low risk is a consequence of the government guarantee or subsidy.

certificates of deposit. CDs trade with “accrued interest” as part of the price.

about $4.28. Divide the market price by the P/E.

the buyer is given one-day notice in writing. A contract made on a “seller’s option” may be terminated by the seller at an earlier date, provided that he gives the buyer one-day notice.

$200. Since XYZ is trading at 72, a November 65 call has an intrinsic value of $700. A sale at that value compared to the cost of $300 is a profit of $400. Subtract the loss of $200 on the expired put to obtain the profit of $200.

Series EE bonds. Because Series EE bonds are not negotiable, they have no collateral value. They cannot be sold back to the US government.