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.
Know the term before it appears in a question.
Terms connect to examples, common mistakes, and the practice page where the rule gets tested.
10 curated terms
Practice-linked terms
2026 exam relevance
Study path
Definitions that move into questions.
Curated for exam relevance
Definitions with exam context
Each term connects the definition to an exam clue, a common mistake, and the next practice step.
Related concepts
Study paths
Use the glossary as a study map. Start with a definition, then move into a related topic page or practice drill where the rule gets tested.
GO bonds, revenue bonds, tax treatment, and MSRB traps.
Advanced options practiceCovered calls, protective puts, assignment, spreads, and straddles.
Products and suitability practiceCustomer facts mapped to product-fit decisions.
Taxation practiceMunicipal income, retirement tax, gains, basis, and tax-equivalent yield.
Term group
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.
Term group
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.
Term group
Investment companies
Term group
Variable products
Apply the definition
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.