The series 7 topoff examination is required for individuals who wish to sell all types of securities for finra member firms, and for finra general securities member firms. There are 5 questions on the test, 125 of which count toward the final score. All of the following would be found in a municipal bond resolution except. Benchmarking and measuring debt capacity is the first volume of the series related to the recommended budget practices of the national advisory council on state and local budgeting nacslb. But i am doing really poorly on debt, i got 50% on the same practice test. Series 7, chapter 10 municipal bond basics flashcards. The recent volatility in the municipal bond market has been remarkable. Series 52 municipal securities representative exam. Mar 15, 20 series 7 podcast video episode 7, municipal bonds this is a video designed to help you understand what you need to know about municipal bonds in order to pass the finra series 7 exam. Mar 17, 2015 municipal debt essentials march 18, 2015. The term municipal bond is commonly used in the united states, which has the largest market of such tradeable securities in the world. Municipal debt financial definition of municipal debt.
You use accretion and amortization when figuring out taxes on bonds. A move of that magnitude in that short a period of. Municipal bond topics comprise approximately 50 to 55 questions on the series 7 exam, also known as the general securities representative exam gsre, which is. Because we understand your frustration, our manuals are written in plain english with shorter paragraphs and are focused on the finra series seven exam content with no unnecessary fluff. Get more answers at our forum for finance and accounting at.
Mar 08, 2014 session 17 in our series 7 exam videos. Municipal bond and note questions on the series 7 exam dummies. If i obtain a series 7 registration, will i be able to trade municipal securities. The series 7 is the general securities registered representative license administered by the financial industry regulatory authority.
The longer the duration, the longer it will take for an investor to get his or her money back and longer term bonds are more volatile. The exam focuses on investment risk, taxation, equity and debt instruments, packaged securities, options, retirement plans and interactions with clients. Sep 26, 2018 a version of this paper was presented as part of the 7 th annual municipal finance conference, held july 1617, 2018 at brookings. These bonds are secured by one or more taxes other than ad valorem property. Realtime data for municipal bonds in the united states. Understanding municipal bonds, comparing general obligation bonds to. A debt security issued by the resolution funding corporation to bail out the savings and loan associations during the financial crisis of the late 1980s and early 1990s. The series 7 is the general securities registered representative license administered by the financial industry regulatory authority finra that entitles the holder to sell all types of. Bonds issued by different municipal authorities that tap the same taxpayers wallets. Municipal securities, or munis, are bonds issued by states, cities, counties and other governmental entities to raise money to build roads, schools and a host of. Series 7 video municipal bonds, finra series 7 exam study guide. This article ensures that you have a complete understanding of how municipal bonds will be tested on the series 7 exam.
This is a video designed to help you understand what you need to know about municipal bonds in order to pass the finra series 7 exam. Series 7 top off general securities representative. May 06, 2020 for all the dramatic headlines of financial disaster facing municipal bond issuers due to the coronavirus, when a bondholder gets a notice of default, it is general a pretty dull affair. Series 7 exam study materials series 7 topoff exam prep. In general, interest paid on municipal bonds is exempt from federal income taxes and state and local income taxes within the state of issue. How to analyze general obligation bonds on the series 7 exam. Series 7 unit 3 municipal securities flashcards by matt mickens. Search by fund name, symbol, fund family or top holding. Frequently asked questions faqs about the series 7 exam. A bond issued by a state or a political subdivision, such as county, city, town or village or by state agencies and authorities. Municipal bond tips for the series 7 exam investopedia. For example, if an investor in the 30% bracket is eying a tax free muni that yeilds 10%.
How to master municipal bond underwriting and pass the series 7 exam to become a general securities registered representative. Pass the first time with our online series 7 video test prep course. Municipal bonds and notes on the series 7 exam dummies. Municipal debt study guide by quizlette40074 includes 96 questions covering vocabulary, terms and more.
Im actually studying for my series 7 right now and take it in about a week or two. If you obtained a general securities representative series 7 registration prior to november 7, 2011, you will be able to trade municipal securities, structure municipal securities underwritings and perform certain other activities involving municipal securities. Stock, bonds, us government obligations and municipal. Choose from 50,000 new issue and secondary market bonds and cds, and approximately 75,000 total offerings quotations when including our depth of book. For all the dramatic headlines of financial disaster facing municipal bond issuers due to the coronavirus, when a bondholder gets a notice of default, it is general a pretty dull affair. Classes of cmos cmo characteristics collateralized debt obligations cdos 2. Taxsupported debt as a percentage of maine personal income is 1. Finra has announced major changes to the series 7 exam effective october 1, 2018. The finra series 7 is a license exam that is taken by stockbrokers in the united states that enable them to trade and to sell a wider range of securities. Duration is a concept that is tested as a basic idea on series 7.
The bond counsel examines the state constitution, any enabling legislation, municipal statutes and the federal tax. The series 7 exam is designed to assess the competency of entrylevel general securities representatives. Learn how to distinguish between general obligation and. Municipal securities issuers are encouraged to provide updated financial and other disclosures. The series 7 will expect you to have a good grasp on types of municipal bonds and notes. A holder is allowed to sell corporate stocks and bonds, municipal bonds, mutual funds, variable annuities, options, direct participation program dpp partnerships, and packaged securities.
Interest is paid over an agreed upon period of time that. Known as the general securities registered representative license, this license allows you to sell a broad range of securities. Yeartodate ytd returns for the muni market were more than 3. Bloomberg indices may be licensed for use as underlying indices for otc or exchangetraded and structured products. Only 30% of the preferred dividend is subject to taxation 30% times 5. One of the keys to passing the series 7 exam is to make sure that you have a complete understanding of how municipal bonds will be tested on the series 7 exam. Study flashcards on series 7 municipal securities at. A municipality wishes to sell a bond issue that is not backed by taxing power. The series 7 exam seeks to measure the degree to which each candidate possesses the knowledge, skills and abilities needed to perform the critical functions of a general securities registered representative. Understanding sec and msrb rules regarding municipal advisors understanding municipal finance performing issuers credit analysis and due diligence structuring, pricing and executing municipal debt products understanding requirements related to the issuance of municipal debt. Municipal bonds may be backed by taxes or by a revenueproducing facility, and you will be tested over the tax treatment of municipal bonds on the series 7 exam.
Series 7 test breakdown whats on the series 7 test. Study flashcards on series 7, chapter 10 municipal bond basics at. Preference for tax exempt income, higher relative credit quality and predictability of payments. Series 50 municipal advisor representative qualification exam. A customer has a federal tax rate of 35% and a state tax rate of 7 %. This page provides an overview of the distinct types of debt and borrowing available to local governments in washington state. The 4% ohio bond is tax free because it is a municipal bond, giving it a 4% after tax yield. Go bonds are not selfsupporting because municipalities issue them to build or. The series 7 exam tests your ability to analyze different types of municipal. It represents the amount of time that it will take for an investor to recoup his or her purchase price. Quizlet flashcards, activities and games help you improve your grades. This 50 minute streamed rental video covers municipal bonds. How to get your series 7 license kaplan financial education.
Series ee bonds series i bonds money market securities and 90 the money market money market instruments interest rates eurodollars and the. Along with standard revenue and go bonds, youre required to know the specifics of the following types of municipal bonds. Wall streets munibond bankers brace for a record year in. The series 7 exam is one of the two exams required to. The series 7 exam topics include investment risk, taxation, equity and debt instruments, packaged securities, options, retirement plans, and interactions with clients. Showing trades for february 14, 2020 premium members can access realtime activity. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The exam consists of 125 multiple choice questions administered through computer using the proctor system. May 04, 2020 the importance of disclosure for our municipal markets the effects of covid19 have raised uncertainties regarding the financial status of state and local governments and special purpose entities. The focus of the exam is the nature of these securities and financial instruments, and it tests knowledge relevant to the daytoday activities, responsibilities, and job. The sie exam and the series 7 exam are corequisite exams.
An index of highgrade municipal bonds lost nearly 11 percent during a twoweek stretch as investors eager to raise cash or rebalance into battered stocks created a logjam of too many sellers. Candidates are given two hours and 30 minutes to complete the exam. Integrated securities industry essentials and series 7. The general securities representative qualification examination, series 7 series 7 is used to assess the knowledge, skills, and abilities required of entrylevel general securities representatives. The series 7 will expect you to have a good grasp on. The questions are in multiple choice format on the series 7 exam. How to understand municipal bonds on the series 7 exam to become a general securities registered representative. Series 7 exam prep how to understand municipal bonds. For additional information on this exam, including the content outline, please visit msrb professional.
Study series 7 unit 3 municipal securities flashcards from matt mickenss. Taking my series 7 exam for the second time pretty soon. Which of the following investments would afford him the best aftertax yield. Still having a lot of trouble with municipal and corporate debt. When investors purchase bonds at a discount, the discount must be accreted over the life of the bond. These various mechanisms for borrowing are either longterm or shortterm, and they can be repaid through tax revenues, user fees, or special assessments.
Financial professionals are encouraged to discuss these matters with main street investors chairman jay. The series 7 exam will ask you questions about calculating accretion and amortization. Case study municipal debt, like corporate debt, ranges in credit quality from investmentgrade to very speculative. Stock, bonds, us government obligations and municipal bonds series 7 nasd exam chris stannard on. With the introduction of the securities industries essentials exam sie exam the new series 7 has been pared down to 125 questions from its original 250 questions. The series 52 examthe municipal securities representative qualification examination mris a municipal securities rulemaking board msrb exam. How to calculate accretion and amortization on the series. Provides an overview of municipal bonds covered in the exam.
Local government can borrow money in a number of different ways. Candidates have to score at least 72 percent to pass. Identify the three entities that are legally entitled to issue municipal debt securities. Municipal bonds securities issued either by state or local government or by us territories, authorities and special districts. Local government securities description understanding municipal bonds, comparing general obligation bonds to revenue bonds, other types of munis, recognizing sources of muni information. Because we understand your frustration, our series 7 manuals are written in plain english with shorter paragraphs and are focused on the finra series 7 exam content with no unnecessary fluff. Free series 7 exam practice questions series 7 top off exam. All statistics are updated at the end of each trading day. Series 7 is developed and maintained by the financial industry regulatory authority finra. Use these tips to breeze through the series 7 exams municipal bond questions. Once a broker has passed the series 7 examination, he or she may sell stocks, municipal bonds and options, but a series 7 license does not allow the holder to sell life insurance or real estate. Series 7 podcast video episode 7, municipal bonds this is a video designed to help you understand what you need to know about municipal bonds in order to pass the finra series 7 exam.
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