Textbook · 20 chapters · 436 pages

The 436-page handbook.

Twenty chapters aligned to the 2026 FINRA Series 7 outline. Learn is the live version of the handbook: read the section, recall the rule, practice it with mapped questions, then review the miss before advancing.

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Chapter 12

Options

Chapter 12 covers options. Know the four basic positions (long call, short call, long put, short put), their maximum gain, maximum loss, and breakeven. Build from there to strategies: covered calls limit upside, protective puts create a floor, straddles profit from volatility, spreads limit both gain and loss. The exam tests calculation, not just identification — practice working through gain/loss scenarios with sample premiums and strike prices.

Chapter 18

Margin

Chapter 18 covers margin: how accounts work, what Regulation T requires, and how to calculate equity, maintenance margin calls, and buying power. Reg T requires 50% initial margin on equity purchases. Minimum maintenance is 25% for long positions, 30% for short. When equity falls below maintenance, a margin call is issued. The SMA records excess equity above Reg T, representing buying power. Pattern day traders must maintain $25,000 equity.

Chapter 07

Municipal Debt

Chapter 7 covers municipal securities: GO bonds backed by the taxing power of the issuer, revenue bonds backed by project receipts, and short-term notes (BANs, RANs, TANs). Federal income tax exemption is the defining feature of munis. Use the Tax-Equivalent Yield formula to compare munis to taxable bonds. MSRB regulates dealers; know the official statement as the disclosure document. Private activity bonds may be subject to the AMT.

Chapter 01

Building an Investor Profile

Chapter 1 establishes what a registered representative must know before making any recommendation. Focus on the difference between financial and non-financial profile information, how to rank investment objectives by risk, and the three suitability obligations under FINRA Rule 2111. Regulation Best Interest defines the standard for broker-dealers; the fiduciary duty defines the standard for investment advisers. Know when each applies, what each requires, and how customer profile information drives both.

Related public resources

Resource

Series 7 study guide 2026

Public chapter outline for the full handbook.

Resource

How to pass the Series 7

Exam strategy, study loop, and failure modes.

Resource

Series 7 glossary

Curated definitions linked to chapters and practice drills.

Resource

Options formulas

Max gain, max loss, and breakevens.

Resource

Margin formulas

Reg T, maintenance, SMA, and equity math.

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Series 7 chapter index

Building an Investor Profile

Build the customer profile facts that drive every suitability and Reg BI recommendation. · pp. 25–42 · 5 sections

Customer Accounts

Learn account opening, registration, authorizations, retirement-plan basics, and required customer verification. · pp. 43–67 · 9 sections

Customer Communications

Review FINRA communication standards, filing rules, options communications, and research-report guardrails. · pp. 68–87 · 10 sections

Equity Securities

Cover equity securities, preferred stock, ADRs, OTC markets, penny-stock rules, and equity tax treatment. · pp. 88–105 · 9 sections

Fundamentals of Debt

Turn fixed-income basics into exam-ready bond pricing, yield, redemption, and tax logic. · pp. 106–120 · 6 sections

Corporate Debt

Compare corporate bond structures, convertibles, money-market instruments, and structured-product risks. · pp. 121–136 · 5 sections

Municipal Debt

Separate municipal GO and revenue bonds, MSRB rules, muni quotes, fund securities, and tax treatment. · pp. 137–163 · 5 sections

U.S. Treasury and Government Agency Debt

Handle Treasury securities, agency debt, mortgage-backed products, CMOs, accrued interest, and prepayment risk. · pp. 164–179 · 11 sections

Investment Companies

Understand mutual funds, closed-end funds, UITs, share pricing, sales charges, and investment-company rules. · pp. 180–203 · 4 sections

Variable Products

Work through variable annuities, variable life insurance, taxation, suitability, and product regulation. · pp. 204–219 · 7 sections

Alternative Products

Study REITs, DPPs, limited partnerships, tax considerations, and alternative-product suitability. · pp. 220–237 · 6 sections

Options

Master options terminology, breakevens, max gain, max loss, spreads, hedges, and tax consequences. · pp. 238–299 · 13 sections

Offerings

Follow capital formation, Securities Act registration, underwriting, exempt offerings, and new-issue rules. · pp. 300–331 · 11 sections

Investment Risks, Returns and Disclosures

Review disclosures, books and records, financial exploitation rules, ACATS, risks, returns, and cost basis. · pp. 332–350 · 9 sections

Portfolio and Market Analysis

Apply suitability, asset allocation, portfolio analysis, technical analysis, and municipal information sources. · pp. 351–372 · 5 sections

Fundamental Analysis

Read financial statements and fundamental-analysis signals the Series 7 expects you to interpret. · pp. 373–387 · 2 sections

Orders and Trade Execution

Connect order tickets, order types, market centers, execution rules, and prohibited trading practices. · Textbook chapter · 9 sections

Margin

Drill margin math, Reg T, long and short equity, SMA, maintenance calls, and buying power. · Textbook chapter · 8 sections

Settlement and Regulatory Reporting

Tie clearing, delivery, settlement, regulatory reporting, and equity-option exercise settlement together. · Textbook chapter · 5 sections

Resolving Disputes and Suitability

Close with errors, complaint handling, arbitration disclosures, Form U4 updates, and suitability review. · Textbook chapter · 4 sections

Textbook

436

pages in sequence

Chapters

143 taught sections

Recall

385

flashcards tied to sections

Practice

1000

items · endless mode · 125-q exam

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Chapter 1. Building an Investor Profile

Works the Series 7 outline through developing a customer profile, financial considerations, and non-financial considerations — the rule triggers, recommendations, and compliance steps this chapter actually tests.

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