Series 7 Exam Podcast Series Episode 3 Equity Securities

   • Series 7 Exam Prep Equity Securities Lectu...      • Series 7 Exam Prep Convertible Bonds & Con...   Equity securities • Types of stock (e.g., authorized, issued, outstanding, Treasury stock, stated value) • Characteristics of common stock  Rights of common stockholders (e.g., pre-emptive right, pro rata share of dividends, access to corporate books, voting power (statutory, cumulative, nonvoting), residual claims on corporate assets)  Spinoffs Series 7 10  Stock acquired through a consolidation or transfer  Penny stocks and rules associated with penny stock transactions • Characteristics of preferred stock  Types of preferred stock (e.g., cumulative, non-cumulative, participating, nonparticipating, convertible, callable, adjustable-rate and variable-rate)  Rights of preferred stockholders (e.g., preference upon corporate dissolution, dividend payment, conversions, sinking fund provisions) • Rights and warrants: origination, exercise terms, relationship of subscription price to market price of underlying stock, anti-dilution agreement • Electronic exchanges or auction markets (e.g., electronic communications networks (ECNs), over-thecounter (OTC), dark pools of liquidity) • Types and characteristics of non-U.S. market securities (e.g., American Depositary Receipts (ADRs), corporate equity) • Tax treatment of equity securities transactions  Capital gains and losses, dividend distributions (qualified and non-qualified), wash sales, holding periods  Determination of net long-term and short-term gains or losses  When-issued securities, securities acquired through conversion  Calculation of cost basis per share on: purchases, exchange of convertibles for common shares, stock dividends and stock rights, inherited or gifted securities  Cost valuation: FIFO, LIFO, identified shares