Series 7 Study Guide PDF (2026): Plain-English, Instant Download
A plain-English Series 7 study guide, written so you understand the material instead of memorizing it. Every one of the exam's units gets its own chapter: the big picture first, then the specific traps the exam tests - not a wall of definitions.
What is inside
| Units covered | 14 of 14 - every unit on the exam |
|---|---|
| Length | 42 pages |
| Format | Instant-download PDF, plain English throughout |
Page and unit counts pulled straight from the delivered file, not marketing copy.
What you can miss on the real exam
You can miss about 35 of the 125 scored questions on the Series 7 and still pass - the passing score is 72%. That is real margin to build into a study plan, not a reason to skip units.
See the level of detail
These are real questions from our Series 7 system, written in the same plain-English voice as the study guide - a taste of what "understand it, don't memorize it" looks like in practice:
Unit 1 - Equity Securities
Which feature is characteristic of cumulative preferred stock that distinguishes it from straight (noncumulative) preferred stock?
A)It can be exchanged for a fixed number of common shares at the holder's option
That describes convertible preferred stock, a separate feature unrelated to whether missed dividends accumulate.
B)Any dividends the issuer skips accumulate as arrears and must be paid before common dividends resume
Cumulative preferred accrues unpaid dividends. The issuer must pay all dividends in arrears, plus the current preferred dividend, before any dividend can be paid to common stockholders. This protection is what separates it from straight preferred.
C)It pays a dividend that floats with prevailing interest rates
That describes adjustable-rate preferred stock. The cumulative feature concerns missed dividends accumulating, not how the rate is set.
D)It allows the holder to receive extra dividends when company profits are high
That describes participating preferred stock. Cumulative preferred relates only to the accrual of skipped dividends.
Unit 4 - Options
A U.S. manufacturer will receive a payment of 10 million British pounds in 90 days for goods already shipped and is concerned the pound will weaken against the dollar. Which listed option position best hedges this exposure?
A)Buy puts on the British pound
An exporter expecting to receive a foreign currency is hurt if that currency falls. Buying puts on the pound locks in a minimum dollar value: if the pound weakens, the puts gain, offsetting the reduced value of the payment. The classic memory aid is that exporters buy puts and importers buy calls on the foreign currency.
B)Buy calls on the British pound
Long pound calls profit if the pound strengthens, which is the direction that already helps the exporter. Calls on the foreign currency are the hedge for a U.S. importer who must pay in that currency, not for a receiver of it.
C)Buy puts on the U.S. dollar
Listed currency options in U.S. markets are written on foreign currencies, not on the U.S. dollar, so this position is not available. The correct hedge is expressed in terms of the pound.
D)Write (sell) puts on the British pound
Writing puts collects only a limited premium and actually loses money if the pound falls sharply, adding to the exporter's loss rather than offsetting it. Short options provide income, not protection.
Unit 9 - Issuing Securities (Primary Market)
Under Rule 144A, unregistered securities may be resold immediately, without a holding period, provided the buyer is which of the following?
A)Any accredited individual investor with $1 million of net worth
Accredited investor status (a Regulation D concept for private placements) is not sufficient for Rule 144A. The rule is limited to qualified institutional buyers, not wealthy individuals.
B)A qualified institutional buyer (QIB) that owns and invests at least $100 million in securities
Rule 144A creates a safe harbor for resales of unregistered (restricted) securities to QIBs, generally institutions owning and investing on a discretionary basis at least $100 million in securities of nonaffiliated issuers. Trades between QIBs settle without registration or a Rule 144 holding period.
C)Any customer of a FINRA member firm who signs a risk disclosure
A risk disclosure does not substitute for registration. Rule 144A does not open these securities to retail customers; it restricts the market to large institutions.
D)A resident of the same state in which the issuer is incorporated
In-state residency describes the Rule 147 intrastate exemption, not Rule 144A. The 144A safe harbor turns on the buyer's institutional status, not geography.