A free FINRA Series 7 cheat sheet: exam mechanics, function weights, the four options positions with breakevens, bond yield order, margin numbers and settlement.
By The Exam Atlas Editorial Team · Verified 2026-08-05
A quick-revision summary for the FINRA Series 7. Use it in the final days before the exam to check recall - it is a study aid only, and no personal notes are allowed in the proctored exam.
Exam mechanics at a glance
Item
Detail
Questions
125 scored + 5 unscored pretest (130 delivered)
Time
225 minutes (3 h 45 min) - about 100 seconds per question
Passing score
72 on a 0-100 equated scale (the SIE’s is 70 - do not mix them up)
Wrong answers
No penalty - answer everything
Entry route
Sponsorship by a FINRA member firm (Form U4) + SIE co-requisite, in either order
Function weights
Function
Weight
Questions
1 - Seeks business
7%
9
2 - Opens accounts
9%
11
3 - Information, recommendations, records
73%
91
4 - Instructions, processing, confirmations
11%
14
Options: the four basic positions
Position
Outlook
Max gain
Max loss
Breakeven
Long call
Bullish
Unlimited
Premium paid
Strike + premium
Short call (naked)
Neutral/bearish
Premium received
Unlimited
Strike + premium
Long put
Bearish
(Strike − premium) × 100
Premium paid
Strike − premium
Short put
Neutral/bullish
Premium received
(Strike − premium) × 100
Strike − premium
Call breakevens add the premium to the strike (“call up”); put breakevens subtract it (“put down”). Premium = intrinsic value + time value.
Options strategies in one line each
Strategy
Construction
Investor expects
Covered call
Long stock + short call
Flat market; income, capped upside
Protective put
Long stock + long put
Bullish but wants insurance
Long straddle
Long call + long put, same strike/expiry
Big move, direction unknown
Short straddle
Short call + short put, same strike/expiry
Little movement
Bull spread
Buy lower strike, sell higher strike
Moderate rise
Bear spread
Buy higher strike, sell lower strike
Moderate fall
Debit spreads profit when both sides are exercised or the spread widens; credit spreads profit when both expire or the spread narrows.
Bond yield order
Price
Order (low → high)
Premium
YTC < YTM < current yield < nominal
Par
All equal
Discount
Nominal < current yield < YTM < YTC
Prices and market yields move inversely; long maturities and low coupons swing hardest.
Day counts and settlement
Item
Convention
Corporate & municipal accrued interest
30-day months / 360-day year
Government notes & bonds accrued interest
Actual calendar days
Regular way settlement (equities, corporates, munis)
T+1
Cash settlement
Same business day
Options premium settlement
Next business day
Accrued interest runs from the last coupon up to, but not including, settlement.
Margin numbers to know
Item
Level
Regulation T initial requirement
50% of purchase price
FINRA maintenance - long positions
25% of market value
FINRA maintenance - short positions
30% of market value
Minimum equity for a new margin account
$2,000 (or 100% of cost if less)
SMA records excess equity and does not shrink when the market falls; a restricted account is one below the Reg T requirement, not a frozen one.
Communications with the public
Category
Audience in 30 days
Approval
Retail communication
More than 25 retail investors
Principal approval generally before use
Correspondence
25 or fewer retail investors
Supervision/review, not pre-approval
Institutional communication
Institutional investors only
Supervision; must not reach retail investors
Communications discussing options carry extra approval and disclosure requirements, including delivery of the options disclosure document.
Municipal quick contrasts
GO bond
Revenue bond
Paid from
Taxing power
Facility revenues
Voter approval
Typically required
Not required
Analysis
Tax base, debt per capita
Feasibility study, rate covenant, coverage ratio
Short-term municipal notes - BANs, TANs, RANs, TRANs - bridge to bond proceeds, taxes or other revenues. Interest on municipals is federally tax-exempt; capital gains on them are taxable.
Packaged products at a glance
Vehicle
Shares
Priced by
Open-end fund
Continuously issued, redeemable
Next computed NAV (forward pricing)
Closed-end fund
Fixed; trade on exchanges
Supply and demand (premium/discount to NAV)
UIT
Fixed portfolio, redeemable units
NAV-based
ETF
Exchange-traded
Market price near NAV
Classic mix-ups to avoid
72 vs 70: 72 passes the Series 7; 70 passes the SIE.
Accumulation vs annuity units: accumulation units during pay-in; a fixed number of annuity units, of varying value, during payout.
Stop vs limit: a stop guarantees a trigger, not a price; a limit guarantees a price, not an execution.
Rights vs warrants: rights are short-term and priced below market; warrants are long-term and priced above market at issue.
Payment above/below the AIR: separate-account return above the AIR raises the next annuity payment; matching the AIR keeps it level.
Discretion: choosing the security, action or amount needs written authorization; choosing only time or price does not.
Wash sale window: 30 days on both sides of the loss sale, and it covers substantially identical securities, not just the same share class.
FAQ
Can I take a cheat sheet into the Series 7 exam?
No. The Series 7 is a proctored exam and personal notes are not allowed. Use this page as a final-revision summary in the last days before your appointment, not during it.
