01_099322 ffirs.qxp 2/23/07 7:41 PM Page iii Series 7 Exam FOR DUMmIES ‰ by Steven M.Rice 01_099322 ffirs.qxp 2/23/07 7:41 PM Page ii 01_099322 ffirs.qxp 2/23/07 7:41 PM Page i Series 7 Exam FOR DUMmIES ‰ 01_099322 ffirs.qxp 2/23/07 7:41 PM Page ii 01_099322 ffirs.qxp 2/23/07 7:41 PM Page iii Series 7 Exam FOR DUMmIES ‰ by Steven M.Rice 01_099322 ffirs.qxp 2/23/07 7:41 PM Page iv Series 7 Exam For Dummies® Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2007 by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. 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Library of Congress Control Number: 2006939440 ISBN: 978-0-470-09932-2 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 01_099322 ffirs.qxp 2/23/07 7:41 PM Page v About the Author After earning a high score on the Series 7 exam in the mid ’90s, Steven M. Rice began his career as a stockbroker for a broker dealership with offices in Nassau County, Long Island, and New York City. In addition to his duties as a registered rep- resentative, he also gained invaluable experience about securities registration rules and regulations when he worked in the firm’s compliance office. But only after Steve began tutoring others in the firm to help them pass the Series 7 did he find his true calling as an instructor. Shortly thereafter, Steve became a founding partner and edu- cator in Empire Stockbroker Training Institute (www.empirestockbroker.com), which has grown into one of the largest and most successful securities training schools in the country. In addition to writing Series 7 Exam For Dummies, Steve developed and designed the Empire Stockbroker Training Institute online (Series 7, Series 6, Series 63, Series 66, and more) exams. Steve has also co-authored a complete library of securities train- ing manuals for classroom use and for home study, including the Series 4, Series 6, Series 7, Series 11, Series 24, Series 63, Series 65, and Series 66. Steve’s popular and highly acclaimed classes, online courses, and training manuals have helped tens of thousands of people achieve their goals and begin their lucrative new careers in the securities industry. Steve lives on Long Island, NY, with his wife, Melissa Kollen-Rice, a real estate attorney, author of the book Buying Real Estate Foreclosures, and owner/instructor of LI Real Estate Training School (www.liret.com). 01_099322 ffirs.qxp 2/23/07 7:41 PM Page vi 01_099322 ffirs.qxp 2/23/07 7:41 PM Page vii Dedication I dedicate this book to my beautiful wife, Melissa. Melissa is the love of my life, my inspiration, and my best friend. Author’s Acknowledgments A fantastic team over at Wiley Publishing made this book possible. I’d like to start by thanking my acquisitions editor, Michael Lewis, for seeing something in me that told him that I was the right man for the job. I believe that he may be one of the few people in this world who sleeps as little as my wife and I. Michael’s rapid responses to my e-mails during the days, evenings, and weekends were quite com- forting as I was beginning this journey. Many thanks also go to my senior project editor, Alissa Schwipps, for her weekly, friendly little e-mails that helped keep me on track when I was wearing thin. Alissa’s guidance and critiques were truly invaluable in the writing of this book. Alissa bought a new house during this project, and I’m sure she had quite a bit going on, making her new house a home, but she was always there when I needed her and is a professional all the way. I would also like to thank my copy editor, Danielle Voirol, for making me a better writer. Danielle’s suggestions on how to make the book more Dummiesstyle ulti- mately made this book more fun to read for all of you. Next, I’d like to thank the entire composition team and the technical editor, Nedra Mitchell. Although I didn’t get a chance to communicate with any of them directly, this book wouldn’t be possible without every one of them. Viewing the final prod- uct, I can tell you one thing: They are the best. During this project, I wasn’t able to put in my normal 60-hour week at my school. I’d like to thank my partner, Rueben Martinez, my office manager (and sister) Sharlene Wegner, and the rest of the staff at Empire Stockbroker Training Institute for picking up the slack so perfectly while I was out. This book would have been much more difficult to write without my dad, Tom Rice. He has always been my role model, inspiring me as to how I want to live the rest of my life. I have the best dad a person could ask for, and I’m extremely blessed to have him, his wife Maggie, and my other sister Sharlet in my corner. Finally, I want to thank my wife, Melissa. There’s no way I could have finished this book if not for her. As a lawyer and real estate school owner, she’s the busiest person I know. As busy as she is, she always makes me her top priority. Melissa was with me every day, every step of the way. She not only read every page of this book several times but also pre-edited and made great suggestions. Her undying love and support helped me through the toughest times. I am eternally grateful, and I love her forever.