Appendix

Important Figures and Formulas

You can't bring your notes (or this Appendix) into the exam center, so be sure to squirrel the following info away in your brain and write it on the scrap paper provided after the test begins.

Adjust for stock splits (Chapter 6)

math
math

Determine the outstanding shares (Chapter 6)

math

Rights formula (Chapter 6)

math

Ex-rights formula (Chapter 6)

math

Calculate the current yield of a stock or bond (Chapter 7)

math

Calculate the conversion ratio of a convertible preferred stock or convertible bond (Chapter 7)

math

Bond seesaw (Chapter 7)

Diagram depicting that if a bond is at par, the seesaw remains level. If the prices decrease, the yields increase, and if the prices increase, the yields decrease.

© John Wiley & Sons, Inc.

Calculate the taxable equivalent yield of a municipal bond (Chapter 8)

Long margin account formula (Chapter 9)

Get Series 7 Exam For Dummies, 4th Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.