SERIES 7 TUTORING TIPS - SUITABILITY

Suitability is not one topic.  Instead it combines many topics into one.  In order to answer a suitability question, series 7 test takers need to know how to profile customers and make recommendations.  This means that a series 7 student needs to be familiar with the characteristics of many securities including but not limited to bonds, options, investment companies, equities, direct participation programs, variable annuities, etc.  For example, a series 7 test taker needs to know the frequency of interest payments on various debt securities.  Try the following question. If you have trouble with this question, you should consider working with a Series 7 Tutor.

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All of the following bonds would likely pay interest on a regular basis EXCEPT

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A) A GE debenture maturing in 2037

B) A US Treasury note maturing in 2012

C) A CMO

D) An exchange traded note

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