Series 7 glossary
Each term in one plain sentence, with the lesson that teaches it.
- After-tax
- what you keep. Lesson: Tax-equivalent yield
- Assignment
- the writer must perform. Lesson: Calls and puts: rights and obligations
- Bearish
- you expect a fall. Lesson: Calls and puts: rights and obligations
- Bond
- a loan that pays interest. Lesson: Bonds: lending money for interest
- Bondholder
- the lender. Lesson: Bonds: lending money for interest
- Bracket
- the tax rate on your top dollars. Lesson: Tax-equivalent yield
- Breakeven
- the price where the buyer gets the premium back. Lesson: Breakeven points
- Broker
- agent, commission. Lesson: Who does what: customers, reps and firms
- Broker-dealer
- the firm. Lesson: Who does what: customers, reps and firms
- Bullish
- you expect a rise. Lesson: Calls and puts: rights and obligations
- Business days
- weekdays, minus holidays. Lesson: Communications with the public (Rule 2210)
- Call
- right to buy. Lesson: Calls and puts: rights and obligations
- Cash account
- you pay it all. Lesson: Margin account documents
- CIP
- proving who a customer is. Lesson: Customer ID, KYC and suitability information
- Cold call
- a sales call they didn't ask for. Lesson: Telemarketing rules (Rule 3230)
- Collateral
- what backs the loan. Lesson: Margin account documents
- Communication
- what the firm writes for outsiders. Lesson: Communications with the public (Rule 2210)
- Coupon
- yearly interest, % of par. Lesson: Bonds: lending money for interest
- Covered call
- own the stock and write a call on it. Lesson: Covered calls
- Covered writer's risk
- the stock falling. Lesson: Covered calls
- Customer
- buys and sells. Lesson: Who does what: customers, reps and firms
- Dealer
- principal, markup. Lesson: Who does what: customers, reps and firms
- Debit
- the loan. Lesson: Reg T initial requirement and the $2,000 minimum
- Debit balance
- what you owe. Lesson: Margin account documents
- Discount
- price below par. Lesson: Bond prices and yields
- Dividend
- profit paid to owners. Lesson: Stocks: owning a slice of a company
- Do-not-call list
- people who said don't call. Lesson: Telemarketing rules (Rule 3230)
- Double-barreled
- revenue, then taxes. Lesson: General obligation vs revenue bonds
- Equity
- what is left for you. Lesson: Reg T initial requirement and the $2,000 minimum
- Established business relationship
- a recent link. Lesson: Telemarketing rules (Rule 3230)
- Ex-date
- first day a buyer misses the dividend. Lesson: Settlement: regular way and options
- Exercise
- using the right → stock settles T+1. Lesson: Settlement: regular way and options
- Expiration
- the last day to use it. Lesson: Calls and puts: rights and obligations
- Filing
- send FINRA a copy to review. Lesson: Communications with the public (Rule 2210)
- FINRA
- writes the rules. Lesson: Who does what: customers, reps and firms
- Firm
- the broker-dealer. Lesson: Who does what: customers, reps and firms
- Fund ad
- file within 10 business days AFTER. Lesson: Communications with the public (Rule 2210)
- GO
- taxes pay you back. Lesson: General obligation vs revenue bonds
- Institutional
- banks, insurers, advisers, $50M+. Lesson: Communications with the public (Rule 2210)
- Issuer
- the one who borrows. Lesson: Bonds: lending money for interest
- Limit order
- your price or better. Lesson: Order types and where stops sit
- Long straddle
- buy a call and a put, same strike, same expiration. Lesson: Long straddles
- Market order
- fills now, at the best price. Lesson: Order types and where stops sit
- Maturity
- the day the loan ends. Lesson: Bonds: lending money for interest
- Muni
- a loan to a state, city or town. Lesson: General obligation vs revenue bonds
- Mutual fund
- one pool of many investors’ money. Lesson: Communications with the public (Rule 2210)
- National registry
- blocks sales calls. Lesson: Telemarketing rules (Rule 3230)
- Option
- the right to buy or sell a stock at a set price. Lesson: Settlement: regular way and options
- Order
- your instruction to buy or sell. Lesson: Order types and where stops sit
- Par
- paid back at the end. Lesson: Bonds: lending money for interest
- price above par. Lesson: Bond prices and yields
- Price
- not guaranteed. Lesson: Order types and where stops sit
- Principal
- a registered supervisor at the firm. Lesson: Communications with the public (Rule 2210)
- Protective put
- own the stock, buy a put. Lesson: Breakeven points
- Put
- right to sell. Lesson: Calls and puts: rights and obligations
- Record date
- owners on the list get paid. Lesson: Settlement: regular way and options
- Reg T
- deposit 50%. Lesson: Reg T initial requirement and the $2,000 minimum
- Regular way
- T+1, since May 28, 2024. Lesson: Settlement: regular way and options
- Retail
- everyone else, like you. Lesson: Communications with the public (Rule 2210)
- Revenue
- the project pays. Lesson: General obligation vs revenue bonds
- Settlement
- the day cash and shares change hands. Lesson: Settlement: regular way and options
- a piece of ownership. Lesson: Stocks: owning a slice of a company
- a part owner. Lesson: Stocks: owning a slice of a company
- Special tax
- one tax only. Lesson: General obligation vs revenue bonds
- SRO
- the industry polices itself. Lesson: Who does what: customers, reps and firms
- Stock
- a piece of ownership. Lesson: Stocks: owning a slice of a company
- Stop
- trigger, then market order. Lesson: Order types and where stops sit
- Stop order
- waits for a trigger price. Lesson: Order types and where stops sit
- Stop price
- the trigger. Lesson: Order types and where stops sit
- Strike price
- the set price. Lesson: Calls and puts: rights and obligations
- Tax-equivalent yield
- the taxable match. Lesson: Tax-equivalent yield
- Uncovered call writer
- sold a call, owns no stock. Lesson: Maximum gain and loss
- Worst case
- let it expire. Lesson: Maximum gain and loss
- Yield
- your return, as %. Lesson: Bond prices and yields