Delving Deeper: Security Investments with a Twist
In this part . . .
Besides stocks and bonds, you have to be familiar with other security investment categories, first to pass the Series 7 exam and then to be more successful in your career as a stockbroker. In this part, I introduce the process by which investors open margin accounts to borrow money for purchasing securities. I also discuss the role of investment companies in helping investors diversify their portfolios. Next, I explain limited partnerships — their formation, function, structure, tax advantages, and tax disadvantages. Last but not least, I introduce you to options, an investment vehicle that allows investors to buy and sell securities at a fixed price; and just as importantly, I provide you with simple charts that help you master difficult options math calculations for the Series 7 exam.