Glossary
Series 7 Glossary
High-yield Series 7 definitions written as study tools: what the term means, how it appears on the exam, where candidates get trapped, and what to practice next.
10 curated terms
Linked to practice
No thin glossary dump
Curated for exam relevance
This glossary is intentionally small. Each term connects to an existing PassSeries7 topic page, handbook chapter, or public practice drill so candidates can move from definition to application without landing on a thin dictionary page.
Municipal bonds
A revenue bond is a municipal bond backed primarily by income from a specific project, facility, or enterprise rather than the issuer's general taxing power.
General Obligation BondA general obligation bond is a municipal bond backed by the issuer's full faith, credit, and taxing power, commonly including ad valorem property taxes.
Options
A covered call combines a long stock position with a short call on the same stock. The stock position covers the obligation to deliver shares if assigned.
Protective PutA protective put combines long stock with a long put on the same stock. The put gives the investor a floor by allowing the stock to be sold at the strike price.
Options AssignmentOptions assignment is the process by which an option writer is selected to fulfill the obligation created by a short option contract.
Investment companies
Variable products
Use definitions inside questions
Definitions only matter when they change an answer choice. After reviewing a term, move into the related practice drill or take the mixed diagnostic to see whether the concept holds up under switching pressure.