March 2019
Intermediate to advanced
432 pages
14h 17m
English
Content preview from Series 7 Exam For Dummies, 4th Edition
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Chapter 9
Borrowing Money and Securities: The Long and Short of Margin Accounts
IN THIS CHAPTER
Understanding the specifics of margin accounts
Zoning in on the initial margin requirements
Calculating with long margin accounts
Summing up short margin accounts
You don’t necessarily need cold cash to buy securities. Thanks to the wonder of margin accounts, you can borrow money from a broker-dealer to purchase securities or borrow the securities themselves. Margin accounts allow customers to buy more securities from you (as a registered rep) than they otherwise would, thus leading to more money in your pocket (a greater commission). However, margin accounts are not without an additional degree of risk (which a lot of people found out back in 1929). Margin accounts are great if the securities held in the account are going in the right direction but horrible if they aren’t.
In this chapter, I cover the Series 7 exam topics relating to short and long margin accounts and show you how to put those math skills to use. And of course, I give you plenty of practice questions.
Practice a lot of ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.