Macroeconomics
Missed two. Got some question answered, like why Chairman Bernanke won't lower the reserve requirement and get this thing over with (rarely used, open market transactions are much preferred.
I have the song, "Everyone Matters" from the Muppets Christmas Story stuck in my head. yet, I still managed to score well.
missed #5, 10.
the index of leading economic indicators is comprised of 10 indicators in many different industries, not just the mfg one that is listed with the correct responses.
I had disintermediation and intermediation backwards.
Stay Classy, San Diego
Friday, December 3, 2010
Series 7 Securities Exam Prep - Chapter 28
No book in today's mail. That's okay because I still have five chapters to go.
This one was on Risk and Client Portfolio. Missed 4. ?s 3, 5, 13, 14.
Missed a question on Standard Deviation. I could not remember the formula. As an aside, can I just tell you that Lorin stole the "o" key off of the keyboard and while I am still able to type it on the bare optics, it is incredibly annoying, and I have began to look for synonyms so as to avoid words without "o" in them. I digress...
somehow we were supposed to solve for the standard deviation, but the question didn't give the expected ROR to us, and in the answer it talks like it did, so maybe i missed something. anyhow, that'd be another formula to add to the memorization pile.
what is variance and what does it tell investors. i knew better, but i got caught up in the head game here. the answer i should have picked didn't specifically say anything about the risk and the answer i chose did.
I also knew better on the question on Beta. It asked if a stock has a beta of 3 what does that mean, and the answer i chose was solely three times as volatile as the market. i considered the selection that would have included the stock moving at a rate 3% greater than the market...but since the question didn't mention that the stock moved at 1% I left it out. no surprises there.
what i am surprised to learn I have missed is the definition of systemic risk. the answer is B according to the answer (I said C), but then it explains the choice of c. is the new book here yet??
*looks out window*
This one was on Risk and Client Portfolio. Missed 4. ?s 3, 5, 13, 14.
Missed a question on Standard Deviation. I could not remember the formula. As an aside, can I just tell you that Lorin stole the "o" key off of the keyboard and while I am still able to type it on the bare optics, it is incredibly annoying, and I have began to look for synonyms so as to avoid words without "o" in them. I digress...
somehow we were supposed to solve for the standard deviation, but the question didn't give the expected ROR to us, and in the answer it talks like it did, so maybe i missed something. anyhow, that'd be another formula to add to the memorization pile.
what is variance and what does it tell investors. i knew better, but i got caught up in the head game here. the answer i should have picked didn't specifically say anything about the risk and the answer i chose did.
I also knew better on the question on Beta. It asked if a stock has a beta of 3 what does that mean, and the answer i chose was solely three times as volatile as the market. i considered the selection that would have included the stock moving at a rate 3% greater than the market...but since the question didn't mention that the stock moved at 1% I left it out. no surprises there.
what i am surprised to learn I have missed is the definition of systemic risk. the answer is B according to the answer (I said C), but then it explains the choice of c. is the new book here yet??
*looks out window*
Series 7 Securities Exam Prep - Chapter 27
This should be entitled "Taxation and Securities: More fun than a barrel of monkeys"
Amazingly, I only missed two questions and felt good about the material as I was testing. The two ?s were 7 and 14.
The first is a question on short-term capital gains, ie Frank buys a call option, the stock goes up and then then he sells. i correctly computed the amt of the gain, but did not select the "short term" capital gain (which, was the correct answer). and the REASON i did not (I can actually remember this rationalization) was that he had not purchased a put or sold a call. when an investor takes a short position in stock, then the capital loss is always short-term regardless of how long they hold the stock (vs. long-term 12 mos). however, the explanation in the book points out that ALL options are short-term gains or losses. this makes sense, since options contracts are usually 3/6/9 mos.
the second ? was on marrying puts and calls to the stock. even though i had the cost basis of the underlying stock correctly, i failed to "marry" the option that the investor purchased on the same day to it. in doing so, the investor is allowed to attach the premium from the option to the first transaction and add the premium to the cost of the underlying stock, increasing the cost basis. which, i don't think that's fair. you shouldn't get a "bonus" for preparing to exploit...er, take action on the market's upticks or downturns.
These last few chapters seem to drag, I am beginning to tire. Well, actually, I was beginning to tire two weeks ago, but now I am ready to be done. And I still have to read it again! Hopefully, the new book will make life easier.
I don't know if I mentioned it, but it does bear repeating, that many people on Amazon (so credible, i know) said two things about the test. 1) do as many practice tests as you can and 2) know your options and bonds/municipals very well.
I need to finish the material so that i have time to learn the formulas i have talked about, more studying on options and bonds, study glossary of terms, and take practice tests. i'd like about a week to do all of that. we have 26 days left, so that leaves 19 to read the new book.
Amazingly, I only missed two questions and felt good about the material as I was testing. The two ?s were 7 and 14.
The first is a question on short-term capital gains, ie Frank buys a call option, the stock goes up and then then he sells. i correctly computed the amt of the gain, but did not select the "short term" capital gain (which, was the correct answer). and the REASON i did not (I can actually remember this rationalization) was that he had not purchased a put or sold a call. when an investor takes a short position in stock, then the capital loss is always short-term regardless of how long they hold the stock (vs. long-term 12 mos). however, the explanation in the book points out that ALL options are short-term gains or losses. this makes sense, since options contracts are usually 3/6/9 mos.
the second ? was on marrying puts and calls to the stock. even though i had the cost basis of the underlying stock correctly, i failed to "marry" the option that the investor purchased on the same day to it. in doing so, the investor is allowed to attach the premium from the option to the first transaction and add the premium to the cost of the underlying stock, increasing the cost basis. which, i don't think that's fair. you shouldn't get a "bonus" for preparing to exploit...er, take action on the market's upticks or downturns.
These last few chapters seem to drag, I am beginning to tire. Well, actually, I was beginning to tire two weeks ago, but now I am ready to be done. And I still have to read it again! Hopefully, the new book will make life easier.
I don't know if I mentioned it, but it does bear repeating, that many people on Amazon (so credible, i know) said two things about the test. 1) do as many practice tests as you can and 2) know your options and bonds/municipals very well.
I need to finish the material so that i have time to learn the formulas i have talked about, more studying on options and bonds, study glossary of terms, and take practice tests. i'd like about a week to do all of that. we have 26 days left, so that leaves 19 to read the new book.
Thursday, December 2, 2010
Series 7 Securities Exam Prep - Chapter 26
This was on Individual Retirement Accounts
Egh. Didn't do too well, mainly because I didn't bother to memorize all the complicated tax limitations based on income. Also, because I didn't want to memorize outdated material.
Here's the ?s I got wrong: 2, 5, 7, 8, 9, 10, 13.
an individual making more than $55k [(c) 2006] can make contributions to their IRA, but it cannot be tax deductible.
total amounts contributed cannot exceed $5k per year, per individual, including ALL IRA, roth ira, etc. accounts. If they are over 50 extra $1k yr. missed 2 on this.
Keogh account participants can contribute up to 25% of their income or 42k whichever is smaller, but must also contribute the same % as they do to their own account to their employee. In the example, I would've needed to calculate 42k is what % of the Dr's $300k income (which was 14%). Then I could have calculated what amts he should pay his help.
couples making up to $150k can contribute 4k each, plus $500 "Catchup". (now 5k plus 1k if over 50).
corporate pension limits are $42k or 25% of employee's income. (same as Keogh, sep ira).
five more chapters and then my new book should arrive by Saturday. I want to be done with this book before that one arrives so I can get to crackin' on it.
27 days...
Egh. Didn't do too well, mainly because I didn't bother to memorize all the complicated tax limitations based on income. Also, because I didn't want to memorize outdated material.
Here's the ?s I got wrong: 2, 5, 7, 8, 9, 10, 13.
an individual making more than $55k [(c) 2006] can make contributions to their IRA, but it cannot be tax deductible.
total amounts contributed cannot exceed $5k per year, per individual, including ALL IRA, roth ira, etc. accounts. If they are over 50 extra $1k yr. missed 2 on this.
Keogh account participants can contribute up to 25% of their income or 42k whichever is smaller, but must also contribute the same % as they do to their own account to their employee. In the example, I would've needed to calculate 42k is what % of the Dr's $300k income (which was 14%). Then I could have calculated what amts he should pay his help.
couples making up to $150k can contribute 4k each, plus $500 "Catchup". (now 5k plus 1k if over 50).
corporate pension limits are $42k or 25% of employee's income. (same as Keogh, sep ira).
five more chapters and then my new book should arrive by Saturday. I want to be done with this book before that one arrives so I can get to crackin' on it.
27 days...
Tuesday, November 30, 2010
Series 7 Securities Licensing Exam - Chapter 25
Annuitites
I really like annuities. I think they are a good way to create income in retirement, barring something I cannot see. The investments grow tax-deferred and when you get your distribution you will likely be at a lower tax bracket than when you were in your asset accumulation phase.
I did well on the test, missing two. #8, 13.
the SEC considers the separate account a security and the separate account which technically is the annuity must register with the SEC. the explanation admits to this being a tricky question, albeit one with "only one correct answer".
a mortality guarantee is an annuitant agreeing to receive payments for life. i thought it was the agreed period of time, but that is actually called a period certain.
I really like annuities. I think they are a good way to create income in retirement, barring something I cannot see. The investments grow tax-deferred and when you get your distribution you will likely be at a lower tax bracket than when you were in your asset accumulation phase.
I did well on the test, missing two. #8, 13.
the SEC considers the separate account a security and the separate account which technically is the annuity must register with the SEC. the explanation admits to this being a tricky question, albeit one with "only one correct answer".
a mortality guarantee is an annuitant agreeing to receive payments for life. i thought it was the agreed period of time, but that is actually called a period certain.
Series 7 Securities Licensing Exam - Chapter 24
Direct Participation Programs. A lot like LLP's.
Missed four questions. 6, 7, 8, 12
what kind of risk is a DPP subject to...i said systemic and liquidity, which were correct, but also legislative risk is a concern. i guess because congress can change laws. that seemed like a stretch.
raw land question. i didn't realize that it cannot be depreciated.
common types of DPPS. I missed this b/c they all looked like DPPs, and I remembered reading about them all. but apparently only the single-tenant leases, shopping centers and government-assisted housing programs are. While warehouse corporations are a DPP, they are "another kind" of DPP (yes that is what the explanation says!).
in a blind-pool investment - i had this one right, in that the the GP chooses the programs investments, as well as the DPP only needs to state what type of investments it is going to make, not the specific investments. but i muddled the prospectus into the mix, and they do have to provide her with a prospectus.
Missed four questions. 6, 7, 8, 12
what kind of risk is a DPP subject to...i said systemic and liquidity, which were correct, but also legislative risk is a concern. i guess because congress can change laws. that seemed like a stretch.
raw land question. i didn't realize that it cannot be depreciated.
common types of DPPS. I missed this b/c they all looked like DPPs, and I remembered reading about them all. but apparently only the single-tenant leases, shopping centers and government-assisted housing programs are. While warehouse corporations are a DPP, they are "another kind" of DPP (yes that is what the explanation says!).
in a blind-pool investment - i had this one right, in that the the GP chooses the programs investments, as well as the DPP only needs to state what type of investments it is going to make, not the specific investments. but i muddled the prospectus into the mix, and they do have to provide her with a prospectus.
Monday, November 29, 2010
Series 7 Securities Licensing Exam - Chapter 23
Mutual Funds = MUTUAL FUN-ds
Have I mentioned yet that I am dreaming about what I'm reading? Dapo said that it's good it gets in my subconscious, to which i quipped that will be great if i'm at the test and can't think of the answer, I will just fall asleep.
Missed 9, 13, 15. Felt good with material.
Questions missed were about a balanced mutual fund. investors can purchase part of a share, whole shares and the NAV represents the value of the share. I missed this because the answer listed "ONLY" whole shares, along with another choice for fractional shares...so I thought because it said ONLY it had to be wrong since you can buy fractions, anyhow.
i did miss what a letter of discount does...gives a period of 13 months for an investor to purchase a certain dollar amt of shares.
i thought long-term capital gains were capped at 15%, but according to the answer it is 20% - thought the text on p. 469 says 15...capital gains are paid on dividends EVEN if they are reinvested. the only way not to pay cap gains is to invest in mutual funds for munipalities.
Have I mentioned yet that I am dreaming about what I'm reading? Dapo said that it's good it gets in my subconscious, to which i quipped that will be great if i'm at the test and can't think of the answer, I will just fall asleep.
Missed 9, 13, 15. Felt good with material.
Questions missed were about a balanced mutual fund. investors can purchase part of a share, whole shares and the NAV represents the value of the share. I missed this because the answer listed "ONLY" whole shares, along with another choice for fractional shares...so I thought because it said ONLY it had to be wrong since you can buy fractions, anyhow.
i did miss what a letter of discount does...gives a period of 13 months for an investor to purchase a certain dollar amt of shares.
i thought long-term capital gains were capped at 15%, but according to the answer it is 20% - thought the text on p. 469 says 15...capital gains are paid on dividends EVEN if they are reinvested. the only way not to pay cap gains is to invest in mutual funds for munipalities.
Series 7 Securities Licensing Exam - Chapter 22
Got four ?s wrong. 1, 2, 9, 14. Also, I always have a couple I guess at that I get right. Of course, there are always a couple that I guess at and get wrong, too. :0)
Questions were on function of an investment company (pool investors funds, offers mgmt of funds, maintains diversified investments.) the price of the securities is determined by the market.
face amt certificates investors can redeem prior to maturity, but do not receive the FULL face amt...what they receive is determined by a formula. I answered that Mortgage owners had to buy them...because I thought it was the lenders who at one point in time had to. but it was the lenders that made the borrowers buy them.
REITs do not pay taxes on their ordinary income if they redistribute 95% of it to its investors.
#14 I got wrong for not reading it well...Investment companies must register w/SEC, offer a prospectus and solicit proxies for matters requiring shareholder approval. Investment objectives can be changed by a majority approval of STOCKHOLDERS and the answer said MANAGEMENT.
I knew better.
So, I'm starting to see some familiar concepts and terms and so the material is a little easier to read. At least in this chapter. I'm 2/3 of the way through the book.
Will order a new book on Tuesday...hopefully the new book will be here by the time I'm done reading the next 10 chapters in this book. haha...that shouldn't be a problem.
Questions were on function of an investment company (pool investors funds, offers mgmt of funds, maintains diversified investments.) the price of the securities is determined by the market.
face amt certificates investors can redeem prior to maturity, but do not receive the FULL face amt...what they receive is determined by a formula. I answered that Mortgage owners had to buy them...because I thought it was the lenders who at one point in time had to. but it was the lenders that made the borrowers buy them.
REITs do not pay taxes on their ordinary income if they redistribute 95% of it to its investors.
#14 I got wrong for not reading it well...Investment companies must register w/SEC, offer a prospectus and solicit proxies for matters requiring shareholder approval. Investment objectives can be changed by a majority approval of STOCKHOLDERS and the answer said MANAGEMENT.
I knew better.
So, I'm starting to see some familiar concepts and terms and so the material is a little easier to read. At least in this chapter. I'm 2/3 of the way through the book.
Will order a new book on Tuesday...hopefully the new book will be here by the time I'm done reading the next 10 chapters in this book. haha...that shouldn't be a problem.
Sunday, November 28, 2010
Series 7 Securities Licensing Exam - Chapter 21
Eek, didn't do well on this, either 7/15 on Margin Accounts.
Missed 4, 5, 9, 10, 11, 13, 14, 15.
missed a ? on what happens when a restricted account is declared. i got 1/2 the ? - that it has fallen below 50% LMV - correct; missing the part which she must do for any further purchases...which i erroneously said deposit 100%. she only needs to deposit 50%.
missed ? on what happens to DR and EQ balances when SMA is used to purchase stock on margin (DR goes up by full amt of margin plus excess, not just excess) and (Equity balance is not effected.
LMV does not increase when interest or dividends are paid to margin accounts.
missed two (one regarding a short sale going down, the other LMV going up), i.e. LMV of a long acct goes up, creating an excess amt put into an SMA. the LMV goes down, what happens to the SMA? nothing, b/c it is a "DR" and the DR doesn't fluctuate with LMV. (only with payments or interest, etc.) SMAs only decrease if a withdrawal is made or securities are purchased w/it.
? on calculating excess. reg T requires 50% of SMV on short accounts. if SMV = 1900 then 1900 x .50 = 950. if EQ = 1800 then excess is EQ - 50 % x SMV. 1800 - 950 = $850. i think i had used CR to calc the 50%, instead of SMV.
a question on combined equity, which = LMV - SMV + CR - DR.
finally a ? on a nonequity corporate bond, which i could not remember the formula for, and just guessed.
Missed 4, 5, 9, 10, 11, 13, 14, 15.
missed a ? on what happens when a restricted account is declared. i got 1/2 the ? - that it has fallen below 50% LMV - correct; missing the part which she must do for any further purchases...which i erroneously said deposit 100%. she only needs to deposit 50%.
missed ? on what happens to DR and EQ balances when SMA is used to purchase stock on margin (DR goes up by full amt of margin plus excess, not just excess) and (Equity balance is not effected.
LMV does not increase when interest or dividends are paid to margin accounts.
missed two (one regarding a short sale going down, the other LMV going up), i.e. LMV of a long acct goes up, creating an excess amt put into an SMA. the LMV goes down, what happens to the SMA? nothing, b/c it is a "DR" and the DR doesn't fluctuate with LMV. (only with payments or interest, etc.) SMAs only decrease if a withdrawal is made or securities are purchased w/it.
? on calculating excess. reg T requires 50% of SMV on short accounts. if SMV = 1900 then 1900 x .50 = 950. if EQ = 1800 then excess is EQ - 50 % x SMV. 1800 - 950 = $850. i think i had used CR to calc the 50%, instead of SMV.
a question on combined equity, which = LMV - SMV + CR - DR.
finally a ? on a nonequity corporate bond, which i could not remember the formula for, and just guessed.
Saturday, November 27, 2010
Series 7 Securities Exam - Chapter 20
This is on customer accounts which was pretty straight forward.
Missed 3?s. # 5, 8, 12.
5 was a question on custodial account. i know that if the acct makes income of more than 1400/yr it must be taxed at the custodian's rate. but i answered that the minor would pay those taxes under their SSN, but it is actually a portion of the $1400 at the child's rate (*15% usually) and the balance at the custodian's higher tax rate (i.e. 30%).
missed a question about a fiduciary account where the answer should have been the prudent man rule, not the fiduciary investing as he or she sees fit. Which to me, is kind of the same, but i get what they're trying to get across here.
if an individual dies w/a will it is testate. if they die w/o a will, it is intestate. the question says if the individual dies leaving a detailed will which of the following types of accounts distribute the estate? answer a) intestate b) executor account. they said the right answer is A and I answered B because *an executor is the executor of the will...
so i think i'm right on that last one.
12/15 or 13/15 depending on my appeal. :D
Missed 3?s. # 5, 8, 12.
5 was a question on custodial account. i know that if the acct makes income of more than 1400/yr it must be taxed at the custodian's rate. but i answered that the minor would pay those taxes under their SSN, but it is actually a portion of the $1400 at the child's rate (*15% usually) and the balance at the custodian's higher tax rate (i.e. 30%).
missed a question about a fiduciary account where the answer should have been the prudent man rule, not the fiduciary investing as he or she sees fit. Which to me, is kind of the same, but i get what they're trying to get across here.
if an individual dies w/a will it is testate. if they die w/o a will, it is intestate. the question says if the individual dies leaving a detailed will which of the following types of accounts distribute the estate? answer a) intestate b) executor account. they said the right answer is A and I answered B because *an executor is the executor of the will...
so i think i'm right on that last one.
12/15 or 13/15 depending on my appeal. :D
Series 7 Securities Exam - Chapter 19
Forex Options
Options based on trade, using the option to purchase currency at a given strike price. The given strike price is based on exchange rates.
Okay stuff, if you have an investor whose company trades or has substantial retail services oversees.
Missed questions 1, 4, 6, 7, 8, 11, 14. D:
ECUs contract size are 62.5k. I thought that was just DMs.
The question on if a currency is expected to increase what should the investor buy i said a call option on the USD, but the answer is a call option on the foreign currency. of course, that is b/c it was the franc which was expected to rise. if the dollar was expected to rise, i would have been right. but i wasn't.
i had absolutely no idea how to calculate the margin requirements since they are terribly complicated. it is not the same formula as a security index.
one ? was on if a DM fell and he had a call what would he lose. i neglected to mulitply my answer by the # of contracts.
i missed one ? calculating the premium of a french franc b/c i took the "tenth of cent" decimal the wrong way. i missed another question calculating DM b/c i multiplied the contracts by the $1.77 not $0.0177 (which is that darn tenth of a cent thing again). also once multiplied by the tenth of a cent, the premium amount needs to be mulitplied by the # of DM in the contract, not the number of contract (instead of 100k, 62,500).
# of yen in a Japenese yen contract is 6,250,000 not 62.5 M.
onto a new section!
Options based on trade, using the option to purchase currency at a given strike price. The given strike price is based on exchange rates.
Okay stuff, if you have an investor whose company trades or has substantial retail services oversees.
Missed questions 1, 4, 6, 7, 8, 11, 14. D:
ECUs contract size are 62.5k. I thought that was just DMs.
The question on if a currency is expected to increase what should the investor buy i said a call option on the USD, but the answer is a call option on the foreign currency. of course, that is b/c it was the franc which was expected to rise. if the dollar was expected to rise, i would have been right. but i wasn't.
i had absolutely no idea how to calculate the margin requirements since they are terribly complicated. it is not the same formula as a security index.
one ? was on if a DM fell and he had a call what would he lose. i neglected to mulitply my answer by the # of contracts.
i missed one ? calculating the premium of a french franc b/c i took the "tenth of cent" decimal the wrong way. i missed another question calculating DM b/c i multiplied the contracts by the $1.77 not $0.0177 (which is that darn tenth of a cent thing again). also once multiplied by the tenth of a cent, the premium amount needs to be mulitplied by the # of DM in the contract, not the number of contract (instead of 100k, 62,500).
# of yen in a Japenese yen contract is 6,250,000 not 62.5 M.
onto a new section!
Friday, November 26, 2010
Series 7 Securities Exam Chapter 18
YAY I got 100% on this portion of testing.
It was on Index Options. I like it! Technically, I got one question wrong, but the answer by it's own definition said the one I chose was correct. Obviously a misprint and/or editing error...
sigh.
Next up Foreign Currency Options.
It was on Index Options. I like it! Technically, I got one question wrong, but the answer by it's own definition said the one I chose was correct. Obviously a misprint and/or editing error...
sigh.
Next up Foreign Currency Options.
Series 7 Securities Exam - Chapter 17
This chapter was on Options Strategies.
Pretty interesting stuff.
Missed a lot of questions. I did discover, however, that this book is one of the most poorly rated topical material for the Series 7 on Amazon. The ratings were 2 and 1 stars across the board. I was glad I'm not the only one finding serious flaws in the editing and etc.
Missed ?s 1, 2, 3, 9, 12, 14. Straddles FOUR times. How to purchase one (buy a call, sell a call). What the profit would be one one given x parameters. And the break even point on the straddle (I picked the choice that gave only half of the correct answer - the call - without realizing it should also be the put, thinking that the put would not gain him money but would actually cut into the premium. Silly me.) What points the straddle encompass ie the break even points on each side of the put and call (which is to add the premiums paid to the strike of the put and subtract the premiums from the call, creating a Put Less Premium to Strike to Call + Premium range).
Breakeven point on the long call spread is the net premium (premium made by writing less the premium paid by buying) plus the Call Strike price.
Okay, two more chapters on this very long sections and I will be done. YAY.
Pretty interesting stuff.
Missed a lot of questions. I did discover, however, that this book is one of the most poorly rated topical material for the Series 7 on Amazon. The ratings were 2 and 1 stars across the board. I was glad I'm not the only one finding serious flaws in the editing and etc.
Missed ?s 1, 2, 3, 9, 12, 14. Straddles FOUR times. How to purchase one (buy a call, sell a call). What the profit would be one one given x parameters. And the break even point on the straddle (I picked the choice that gave only half of the correct answer - the call - without realizing it should also be the put, thinking that the put would not gain him money but would actually cut into the premium. Silly me.) What points the straddle encompass ie the break even points on each side of the put and call (which is to add the premiums paid to the strike of the put and subtract the premiums from the call, creating a Put Less Premium to Strike to Call + Premium range).
Breakeven point on the long call spread is the net premium (premium made by writing less the premium paid by buying) plus the Call Strike price.
Okay, two more chapters on this very long sections and I will be done. YAY.
Series 7 Securities Exam - Chapter 16
Equity Options and Trading
Did terrible. Missed 4, 6, 7, 12-15.
Question content; trading deadline of options. twice. to buy/sell stops at 402. HOLDERS window to exercise ends at 530.
OCC's role in the market.
Margin minimum and basic requirements. Twice. One covered and one uncovered.
CROP and options exchanges need educational material.
CROP and how many contracts on a single side of the market, exercise limits.
To close a hold position you make a closing sale.
Whoop tee do.
Did terrible. Missed 4, 6, 7, 12-15.
Question content; trading deadline of options. twice. to buy/sell stops at 402. HOLDERS window to exercise ends at 530.
OCC's role in the market.
Margin minimum and basic requirements. Twice. One covered and one uncovered.
CROP and options exchanges need educational material.
CROP and how many contracts on a single side of the market, exercise limits.
To close a hold position you make a closing sale.
Whoop tee do.
Tuesday, November 23, 2010
Series 7 Securities Exam - Chapter 15
Wow. I expected this chapter to be easy since I felt good about its sister Chapter 14 on Call Options. The Put Options are a little different, though and really took some chewing to figure out.
I tested the best I have tested thus far, missing only two of the 15 questions. Both questions were with regards to having a Put Call and it being in the money and what happens if a closing purchase is made. Who makes money and etc.
Good stuff.
Up next: Equity Options.
I tested the best I have tested thus far, missing only two of the 15 questions. Both questions were with regards to having a Put Call and it being in the money and what happens if a closing purchase is made. Who makes money and etc.
Good stuff.
Up next: Equity Options.
Monday, November 22, 2010
Securities Licensing Exam - Chapter 14
Well, slowly but surely I am getting through the material. I enjoyed this chapter on options, I see how if you have the tolerance for the risk and market knowledge and are astute how it could work in your favor for big $. Basically legalized gambling, though. My book actually uses the word "bet".
I missed four questions: 3, 10, 14, 15. Two of the questions (3, 15) were the same, on calculating intrinsic value. I did the calculation correctly, but where i erred was that I did not multiply the answer by the number of lots.
then on a ? about what the most a writer with shares in inventory could stand to gain/lose on a call option. although i calculated the gain correctly, i chose the option of "losses are endless" when in fact, they can actually only lose as much as they paid for the stocks/inventory cost.
finally, if a purchase of a call is made, it is an opening purchase (versus an opening sale, closing sale/purchase).
Liked this chapter. Excited to read #15 tomorrow which is on Put Options (today was Call Options, or options to buy).
I missed four questions: 3, 10, 14, 15. Two of the questions (3, 15) were the same, on calculating intrinsic value. I did the calculation correctly, but where i erred was that I did not multiply the answer by the number of lots.
then on a ? about what the most a writer with shares in inventory could stand to gain/lose on a call option. although i calculated the gain correctly, i chose the option of "losses are endless" when in fact, they can actually only lose as much as they paid for the stocks/inventory cost.
finally, if a purchase of a call is made, it is an opening purchase (versus an opening sale, closing sale/purchase).
Liked this chapter. Excited to read #15 tomorrow which is on Put Options (today was Call Options, or options to buy).
Securities Licensing Exam - Chapter 13
Finally, some test results that match how I felt while testing.
I got 12/15 on this section about the NASDAQ / OTC market.
Missed #1, 2, and 8.
pink slips are NON-NASDAQ quotes, not vice versa.
NASD traders use level two of the NASDAQ system, as well as SOES which is the small order entry system. if the order is fewer than 1000 shares they enter it themselves.
the Rules of Fair Practice govern how Dealers deal with customers. I think I said the Code of Procedure, which is how dealers deal amongst each other.
yay. next up: FIVE chapters of OPTIONS [waah waaah].
I got 12/15 on this section about the NASDAQ / OTC market.
Missed #1, 2, and 8.
pink slips are NON-NASDAQ quotes, not vice versa.
NASD traders use level two of the NASDAQ system, as well as SOES which is the small order entry system. if the order is fewer than 1000 shares they enter it themselves.
the Rules of Fair Practice govern how Dealers deal with customers. I think I said the Code of Procedure, which is how dealers deal amongst each other.
yay. next up: FIVE chapters of OPTIONS [waah waaah].
Saturday, November 20, 2010
Securities Licensing Exam - Chapter 12
Ay yi yi. The poor testing continues. I am hoping it is just the way this book is wording things that is tripping me up and not the actual material.
I got 7 questions wrong again, even though I felt like I comprehended the material. Really is not like me to test so poorly. 8/15, questions missed were #s 1, 2, 6, 8, 10, 11, 15.
Question 11 was bogus, since there was nothing I read on ex dividends. #8 i knew the answer to but missed due to misreading the choices (75 - 75.25, 800 - 600) means buy, ask, buyer, seller.
In order to trade on NYSE a co must have 100k shares traded over the past 6mos, min 1.1M common shares, Earnings 2.5M, no fewer than 2000 shareholders at 100 shares each.
NYSE can delist you for fewer than 1200 shareholders at 100 shares person, fewer 600k outstanding shares, total market value less than $5M. i answered that their losses would also cause them delisted, but upon realizing I got the question wrong, I do remember reading that NYSE knows companies can weather bad years and get back on track.
specialists maintain a market of certain NYSE exchange securities.
buy stop orders and the scenario surrounding them (usually a short position).
S&P 500 tracks stocks of 500 companies (not necessarily NYSE) and provides a more accurate picture of the market than the Dow.
I got 7 questions wrong again, even though I felt like I comprehended the material. Really is not like me to test so poorly. 8/15, questions missed were #s 1, 2, 6, 8, 10, 11, 15.
Question 11 was bogus, since there was nothing I read on ex dividends. #8 i knew the answer to but missed due to misreading the choices (75 - 75.25, 800 - 600) means buy, ask, buyer, seller.
In order to trade on NYSE a co must have 100k shares traded over the past 6mos, min 1.1M common shares, Earnings 2.5M, no fewer than 2000 shareholders at 100 shares each.
NYSE can delist you for fewer than 1200 shareholders at 100 shares person, fewer 600k outstanding shares, total market value less than $5M. i answered that their losses would also cause them delisted, but upon realizing I got the question wrong, I do remember reading that NYSE knows companies can weather bad years and get back on track.
specialists maintain a market of certain NYSE exchange securities.
buy stop orders and the scenario surrounding them (usually a short position).
S&P 500 tracks stocks of 500 companies (not necessarily NYSE) and provides a more accurate picture of the market than the Dow.
Securities Licensing Exam - Chapter 11
I think this is the last on munis. Though I have enjoyed the subject matter, I am not testing well enough to pass. I scored 10/15 on the MSRB questions. That's the Municipal Security Rulemaking Board.
I missed 1, 4, 7, 11, 13.
MSRB rules and reg do not apply to the munis themselves.
Municipal apprentices can represent themselves to other brokers, but cannot receive a commission. i didn't think they cld do anything.
when a muni dealer advertises a bond they list the ytm and price of bond on pub date. i didn't chose this option b/c i thought that was only for 2nd offerings.
when campaign contributions are made, i knew the two year penalty. what i got wrng was that the dealer can actually still enter a competitive bid to the municipality. i guess i do not know the difference between a competitive bid and a negotiated bid. they are prvented from bidding on negotiated but can still do competitive b/c in theory municipalities offer these to the lowest bidder.
on the last one regarding discretionary accounts, I didn't think duplicate confirms had to be sent to the clients employer unless the discretionary account was at another broker dealer. the questions did not explicitly state this. but the answer seems to imply that the questions referring to a broker.
I missed 1, 4, 7, 11, 13.
MSRB rules and reg do not apply to the munis themselves.
Municipal apprentices can represent themselves to other brokers, but cannot receive a commission. i didn't think they cld do anything.
when a muni dealer advertises a bond they list the ytm and price of bond on pub date. i didn't chose this option b/c i thought that was only for 2nd offerings.
when campaign contributions are made, i knew the two year penalty. what i got wrng was that the dealer can actually still enter a competitive bid to the municipality. i guess i do not know the difference between a competitive bid and a negotiated bid. they are prvented from bidding on negotiated but can still do competitive b/c in theory municipalities offer these to the lowest bidder.
on the last one regarding discretionary accounts, I didn't think duplicate confirms had to be sent to the clients employer unless the discretionary account was at another broker dealer. the questions did not explicitly state this. but the answer seems to imply that the questions referring to a broker.
Securities Licensing Exam - Chapter 10
I am sick of this, but it is necessary. And it is only necessary if it is necessary. It is. So onward.
Chapter 10. Funny, I am enjoying these chapters on munis, but am testing horribly. IDKY. In other news, my cousin's wife was on Oprah's 25th Farewell Season Favorite Christmas things. She won all kinds of stuff.
Missed 7, scored 8/15. #4, 6, 8, 9, 11, 12, 14.
muni is building a new bridge, so study will be commissioned and the cost of projec needs determined. i said those and muni needs a referendum vote b4 issuing bonds, which is not the case since it is a project and not a GO bond. GO bonds are backed by taxes, which wuld require tax payer vote.
notice of sale has amt, type of taxes backing bond type of bond. no int rate since this is yet TBD during biding process.
writing the scale question i had no idea what that even was so i guessed, but the right answer is assessing market demand for the bond.
lead u/w for a muni u/w synd are considered the syn mgr, make all invstmnt choices, chose the synd members and make a mgmt fee on each bond sold.
management fee vs. takedown fee. still struggling w/this concept.
synd mgrs are responsible for announcing synd's winning bid, closing the books on the sld-out issue, paying synd members there share of the spread, making sure any 1 cust didn't purchase 2 many bonds. not responsible for making a market.
firm offers are the types of quotes a muni bond dealer will make to buy or sell.
Chapter 10. Funny, I am enjoying these chapters on munis, but am testing horribly. IDKY. In other news, my cousin's wife was on Oprah's 25th Farewell Season Favorite Christmas things. She won all kinds of stuff.
Missed 7, scored 8/15. #4, 6, 8, 9, 11, 12, 14.
muni is building a new bridge, so study will be commissioned and the cost of projec needs determined. i said those and muni needs a referendum vote b4 issuing bonds, which is not the case since it is a project and not a GO bond. GO bonds are backed by taxes, which wuld require tax payer vote.
notice of sale has amt, type of taxes backing bond type of bond. no int rate since this is yet TBD during biding process.
writing the scale question i had no idea what that even was so i guessed, but the right answer is assessing market demand for the bond.
lead u/w for a muni u/w synd are considered the syn mgr, make all invstmnt choices, chose the synd members and make a mgmt fee on each bond sold.
management fee vs. takedown fee. still struggling w/this concept.
synd mgrs are responsible for announcing synd's winning bid, closing the books on the sld-out issue, paying synd members there share of the spread, making sure any 1 cust didn't purchase 2 many bonds. not responsible for making a market.
firm offers are the types of quotes a muni bond dealer will make to buy or sell.
Thursday, November 18, 2010
Securities Licensing Exam - Chapter 9
This was on municipalities...not nearly as infuriating as tbills and the financial markets. haha.
I got 10/15, which suggests I should have gone to bed earlier than I did. I do remember falling asleep a couple of times.
The questions I missed were 2, 3, 10, 12, 14.
Two of the questions (2,3) were on the nature of munis. They are generally tax exempt from federal. provided they are issued in the same municipality as the user, they are exempt from all 3. i thought they were not exempt from federal taxes.
industrial revenue and industrial development bonds I do not even remember reading about. special assessment bonds i missed b/c i said the municipality backed the bond w/ad valorem tax...b/c there were two answers about how the muni backed the bond, so i figured it had to be one of them...but the false statement was that they are a type of revenue bond. they are GO's and are backed by taxes.
Section 8 munis are backed by the federal government. HUD>I thought that no munis were backed by the Fed...but it is not the FED, it is HUD.
That's all...on to 10, which is really more municipalities.
Also, one of the questions I got right by guestimating which is #15. i just remembered in the example the lady had a 28% tax bracket and the bond was about 5% coupon and the answer to that was around 7%. i did not get this right because i knew the formula...to which i repeat myself, to study and memorize all of the ratio, ytm, adjusted cost rate, rates yields, etc.
Bye!
I got 10/15, which suggests I should have gone to bed earlier than I did. I do remember falling asleep a couple of times.
The questions I missed were 2, 3, 10, 12, 14.
Two of the questions (2,3) were on the nature of munis. They are generally tax exempt from federal. provided they are issued in the same municipality as the user, they are exempt from all 3. i thought they were not exempt from federal taxes.
industrial revenue and industrial development bonds I do not even remember reading about. special assessment bonds i missed b/c i said the municipality backed the bond w/ad valorem tax...b/c there were two answers about how the muni backed the bond, so i figured it had to be one of them...but the false statement was that they are a type of revenue bond. they are GO's and are backed by taxes.
Section 8 munis are backed by the federal government. HUD>I thought that no munis were backed by the Fed...but it is not the FED, it is HUD.
That's all...on to 10, which is really more municipalities.
Also, one of the questions I got right by guestimating which is #15. i just remembered in the example the lady had a 28% tax bracket and the bond was about 5% coupon and the answer to that was around 7%. i did not get this right because i knew the formula...to which i repeat myself, to study and memorize all of the ratio, ytm, adjusted cost rate, rates yields, etc.
Bye!
Tuesday, November 16, 2010
Securities Licensing Exam - Chapter 8
Man, this chapter took even longer than Saturday's Chapter 7.
This was about agency debt and it made me mad, too. The thought occurred to me that perhaps the reason certain types of instruments were upsetting to me is because they are bad investments.
Here's the ugly truth- got 9/15 right. missed three by over-analyzing. changed my answers when i should have gone w/my gut, which was the right answer. The questions and subject matter I missed:
#1, 5, 6, 8, 13, 14.
US govt securities support farming, education, housing AND foreign trade. I didn't think foreign trade was included; which the govt guarantees FSA (farm service agency), VA and FHA loans. For w/e reason, I wasn't certain about the FSA loan; Bonds issued by FHLBS are NOT callable. that one i just flat missed; GNMA loan income is not exempt from local and state taxes. i knew better on this, I just opted to go with GNMA is a part of the federal government, because i thought it was a trick ?; straight pass through's are backed by the real property underlying the debt, which I knew...I changed my answer to guarantee of the issuing agency; and finally, the greatest risk of pass through certs is the repayment risk, I had chosen interest rates which fuel the risk one way or another, not directly involved in the transaction risk.
That's it. I am glad to move on from this one, although given my score I most certainly will have to read it again. booo. Also, I want to reiterate to study and memorize the YTM, convertible ratio formulas etc. etc.
One good thing about chapter 8 is the PSA (Public Service Association) model. I like that Freddie Mac came up with a formula that accurately predicts the way similar pools of mortgages (i.e. same interest rate same maturity date) behave and when they will refinance etc. I dislike that they used that model to issue CMO's, PACs and TACs. I don't like the ideas of those at all.
The only type of pass-through certificate I think is even sound is GNMA, solely because it is backed by the government. That is not a recommendation, however, just a talking point about the chapter.
God bless.
This was about agency debt and it made me mad, too. The thought occurred to me that perhaps the reason certain types of instruments were upsetting to me is because they are bad investments.
Here's the ugly truth- got 9/15 right. missed three by over-analyzing. changed my answers when i should have gone w/my gut, which was the right answer. The questions and subject matter I missed:
#1, 5, 6, 8, 13, 14.
US govt securities support farming, education, housing AND foreign trade. I didn't think foreign trade was included; which the govt guarantees FSA (farm service agency), VA and FHA loans. For w/e reason, I wasn't certain about the FSA loan; Bonds issued by FHLBS are NOT callable. that one i just flat missed; GNMA loan income is not exempt from local and state taxes. i knew better on this, I just opted to go with GNMA is a part of the federal government, because i thought it was a trick ?; straight pass through's are backed by the real property underlying the debt, which I knew...I changed my answer to guarantee of the issuing agency; and finally, the greatest risk of pass through certs is the repayment risk, I had chosen interest rates which fuel the risk one way or another, not directly involved in the transaction risk.
That's it. I am glad to move on from this one, although given my score I most certainly will have to read it again. booo. Also, I want to reiterate to study and memorize the YTM, convertible ratio formulas etc. etc.
One good thing about chapter 8 is the PSA (Public Service Association) model. I like that Freddie Mac came up with a formula that accurately predicts the way similar pools of mortgages (i.e. same interest rate same maturity date) behave and when they will refinance etc. I dislike that they used that model to issue CMO's, PACs and TACs. I don't like the ideas of those at all.
The only type of pass-through certificate I think is even sound is GNMA, solely because it is backed by the government. That is not a recommendation, however, just a talking point about the chapter.
God bless.
Sunday, November 14, 2010
Series Securities Licensing Exam - Chapter 7
This was a hard chapter to study simply because of the amounts of time I was interrupted, and my direct proximity to the action of the household throughout the day.
I got 11/15, 73%. I believe the passing grade is 75%, so I have work to do. One thing I am realizing is that I need to study the ratios, how to calculate bond yields, things of this nature...anything with a formula.
I got questions 1, 7, 8, 14 wrong. Military expenses are "discretionary" spending and not an "entitlement program" like Medicaire, government securities carry little risk, and are direct obligations of the government. Also, I calculated $14 correctly (semi-annual interest) but I forgot to divide the answer in 1/2 to answer the question.
Just glad to be done with that one. Oh, and I dreamed about interest rates and charts last night. Dapo said that means I am really digesting the information. I said yeah, if I can't think of the answer I will just fall asleep during the exam and wake up with the answer. That sounded funnier when we said it than when I typed it.
Chapter 8 tomorrow. Good night!
I got 11/15, 73%. I believe the passing grade is 75%, so I have work to do. One thing I am realizing is that I need to study the ratios, how to calculate bond yields, things of this nature...anything with a formula.
I got questions 1, 7, 8, 14 wrong. Military expenses are "discretionary" spending and not an "entitlement program" like Medicaire, government securities carry little risk, and are direct obligations of the government. Also, I calculated $14 correctly (semi-annual interest) but I forgot to divide the answer in 1/2 to answer the question.
Just glad to be done with that one. Oh, and I dreamed about interest rates and charts last night. Dapo said that means I am really digesting the information. I said yeah, if I can't think of the answer I will just fall asleep during the exam and wake up with the answer. That sounded funnier when we said it than when I typed it.
Chapter 8 tomorrow. Good night!
Saturday, November 13, 2010
Series 7 Securities Licensing Exam - Chapter 6
HATED IT!
I really did. It was on the money market and given Bernanke's recent announcement of the Fed's intent to purchase $600 billion in tbills and I saw how the book said this is the opposite of what he should be doing.
It sounds to me like the money market is essentially a bunch of check kiting with interest. Some of it is okay, like post dating a check ??! (as an aside, this is called a banker's acceptance and used to import goods)
So, it's illegal for you to do it, to your bank, but not for your bank to do it to their bank. Got it?
But the only other alternative it seems is for the Fed to lower the reserve requirement for banks, which would in effect loosen the funds available to lend, increase interest rates and send the economy in the right direction. but then people might realize that the banks are living paycheck to paycheck deposits like the rest of america and don't have the money to lend to each other overnight anymore...so then we'll just print more money, buy more bills, and indirectly boost the amount of money you need to keep on deposit, but since you will have more on deposit, that shouldn't be so hard to do.
In addition, the idea of repurchase agreements got me angry, too.
Now, about that 1.1% CD...
Anyhow I missed several questions and I do care about that. They were #s 2, 8, 11, 13, 15. money center banks must not be members of the Federal Reserve System. #8 was about commercial paper which said which of these is false, and I read which is true and saw that the first one was true and marked it. commercial paper matures 270 days or fewer, is cheaper than borrowing from a bank, usually sell at a discount and are redeemed at par value and usually is only issued by companies with good credit ratings because they are unsecured.
Fed targets the Fed funds rate w/its open market ops. This is not the discount rate (what the Fed loans $ to banks at for overnight loans) but it is the rate that banks loan to each other at (of course, after receiving the loan from the fed to loan to the other bank). AARGH.
banks that need a payday loan (I'm jesting) can borrow in the Eurodollar market LIBOR London InterBank something OR other.
Money Market funds must register w/the SEC because of Cam Newton. OH, wrong SEC.
10/15 . 66 % . FAIL >8(
I really did. It was on the money market and given Bernanke's recent announcement of the Fed's intent to purchase $600 billion in tbills and I saw how the book said this is the opposite of what he should be doing.
It sounds to me like the money market is essentially a bunch of check kiting with interest. Some of it is okay, like post dating a check ??! (as an aside, this is called a banker's acceptance and used to import goods)
So, it's illegal for you to do it, to your bank, but not for your bank to do it to their bank. Got it?
But the only other alternative it seems is for the Fed to lower the reserve requirement for banks, which would in effect loosen the funds available to lend, increase interest rates and send the economy in the right direction. but then people might realize that the banks are living paycheck to paycheck deposits like the rest of america and don't have the money to lend to each other overnight anymore...so then we'll just print more money, buy more bills, and indirectly boost the amount of money you need to keep on deposit, but since you will have more on deposit, that shouldn't be so hard to do.
In addition, the idea of repurchase agreements got me angry, too.
Now, about that 1.1% CD...
Anyhow I missed several questions and I do care about that. They were #s 2, 8, 11, 13, 15. money center banks must not be members of the Federal Reserve System. #8 was about commercial paper which said which of these is false, and I read which is true and saw that the first one was true and marked it. commercial paper matures 270 days or fewer, is cheaper than borrowing from a bank, usually sell at a discount and are redeemed at par value and usually is only issued by companies with good credit ratings because they are unsecured.
Fed targets the Fed funds rate w/its open market ops. This is not the discount rate (what the Fed loans $ to banks at for overnight loans) but it is the rate that banks loan to each other at (of course, after receiving the loan from the fed to loan to the other bank). AARGH.
banks that need a payday loan (I'm jesting) can borrow in the Eurodollar market LIBOR London InterBank something OR other.
Money Market funds must register w/the SEC because of Cam Newton. OH, wrong SEC.
10/15 . 66 % . FAIL >8(
Securities Licensing Exam - Chapter 5
It may have taken all morning to do this 14 page chapter, but I did it.
My score was a 12/15 but it is very surprising as well as deceptive! I wasn't answering with confidence and don't know the bond ratio, parity prices and other calculations by heart and I was guessing. This is something I'm going to want to study more later.
The questions which I missed, were 9, 13, 15. Eurobonds, who pays interest on a bond sale (the BUYER pays interest on a bond to the seller, but I was thinking the seller i.e. issuer, and I was wrong), and given a choice of bonds which one has the highest market risk. I chose the 30 yr debenture, thinking the one w/ the longest maturity. But market risk also applies for low coupons, and answer D was a 30 yr 5% first mortgage bond. of the two, incidentally, the debenture has a higher credit risk, as the latter is secured by collateral.
I really enjoyed the material in this chapter, if I can just memorize the ratios, how to get parity. Also, I need to get straight which way a bond converting to stock is good. It is good if the stock price is higher than the bond conversion price. Bond conversion price is opposite, I think.
I liked learning about yellow sheets and arbitrage in particular. The material is all new, as are the concepts, which is why I think it is taking me so long to read it.
My score was a 12/15 but it is very surprising as well as deceptive! I wasn't answering with confidence and don't know the bond ratio, parity prices and other calculations by heart and I was guessing. This is something I'm going to want to study more later.
The questions which I missed, were 9, 13, 15. Eurobonds, who pays interest on a bond sale (the BUYER pays interest on a bond to the seller, but I was thinking the seller i.e. issuer, and I was wrong), and given a choice of bonds which one has the highest market risk. I chose the 30 yr debenture, thinking the one w/ the longest maturity. But market risk also applies for low coupons, and answer D was a 30 yr 5% first mortgage bond. of the two, incidentally, the debenture has a higher credit risk, as the latter is secured by collateral.
I really enjoyed the material in this chapter, if I can just memorize the ratios, how to get parity. Also, I need to get straight which way a bond converting to stock is good. It is good if the stock price is higher than the bond conversion price. Bond conversion price is opposite, I think.
I liked learning about yellow sheets and arbitrage in particular. The material is all new, as are the concepts, which is why I think it is taking me so long to read it.
Friday, November 12, 2010
Securities Licensing Exam Prep - Chapter 4
I got another 12/15, missing questions #6, 7, 15. They were all because I did not read the question well, but topic matters were a bond's coupon, bond maturity date and YTM (Yield to Maturity).
That felt good, two passes in a row, and I would have done better had I slowed down a little.
See you tomorrow, when my goal is to do three chapters (5-7).
That felt good, two passes in a row, and I would have done better had I slowed down a little.
See you tomorrow, when my goal is to do three chapters (5-7).
Securities Licensing Exam - Chapter 3
I did much better on this chapter! Scoring 9/12 missing questions 7, 11 and 14. The questions I missed were on rights distribution/subscription ratio/subscription price and the market value of the rights, dividends to common stockholders vs. cummulative preferred stockholders (which i knew that they had to make up payments of dividends they hadn't paid to preferred stockholders, I only calculated 2 qtrs, not 3 to include the current qtr), and properties of warrants (I got the two correct, but thought they also had to go NYSE for OTC. this is incorrect, as they go to whatever exchange the underlying stock is registered in).
I feel much better about that chapter!
I feel much better about that chapter!
Clarification
I feel the need to clarify (or reiterate, or initially state) that the questions and answers I am referring to are found within the study literature and not the test itself. I have not taken or seen or have knowledge of the test.
I'm sure that would be bad if I had, and I blogged about it.
These are from the Exam Prep and Exam Answers of the Exam Cram book "Series 7 Securities Licensing Review Exam Cram", c)2006 Que Publishing.
I also feel the need to state that I am not quoting the book, or transmitting it by any means, but rather discussing topics contained therein which are not proprietary to the book and can be found in many public venues such as wikipedia, investopedia, etc.
I'm sure that would be bad if I had, and I blogged about it.
These are from the Exam Prep and Exam Answers of the Exam Cram book "Series 7 Securities Licensing Review Exam Cram", c)2006 Que Publishing.
I also feel the need to state that I am not quoting the book, or transmitting it by any means, but rather discussing topics contained therein which are not proprietary to the book and can be found in many public venues such as wikipedia, investopedia, etc.
Securities Licensing Exam - Chapter 2
I did a little better on this morning's studying. Getting 10/16 or 62.5%. This is a good improvement on yesterday's 40% exam, but is still beneath the 75% benchmark needed to pass the 250 question exam.
I missed questins 2, 7, 8, 9, 10, 16 on dual listing (this is a major exchange and a regional exchange...cannot be NYSE and AMEX dual members), I missed two questions on agent commissions and dealer mark ups as I had them switched in my mind (but I have a good way to remember - insurance AGENTS make commissions, car DEALERS mark up the invoice), two questions on upticks and short sales (there was a ticker and when could you short sale...I kept thinking that the share price needed to go down, since that is what a short sale is...but now I realize it has to have a zero plus uptick or uptick in order for the sale to be PLACED. this is to prevent the bear raids), and a question on the definition of an insider in the Insider Trading and SFEA of 1988 which I missed b/c I answered the officer, director and 10% ownership answer...which was either in the 1933 or 1934 act...the 1988 Act changes the insider definition to anyone who acts based on material, nonpublic information.
I missed questins 2, 7, 8, 9, 10, 16 on dual listing (this is a major exchange and a regional exchange...cannot be NYSE and AMEX dual members), I missed two questions on agent commissions and dealer mark ups as I had them switched in my mind (but I have a good way to remember - insurance AGENTS make commissions, car DEALERS mark up the invoice), two questions on upticks and short sales (there was a ticker and when could you short sale...I kept thinking that the share price needed to go down, since that is what a short sale is...but now I realize it has to have a zero plus uptick or uptick in order for the sale to be PLACED. this is to prevent the bear raids), and a question on the definition of an insider in the Insider Trading and SFEA of 1988 which I missed b/c I answered the officer, director and 10% ownership answer...which was either in the 1933 or 1934 act...the 1988 Act changes the insider definition to anyone who acts based on material, nonpublic information.
Securities Licensing Exam - Chapter 1
I got 6/15, missing questions 3, 4, 6, 9, 10, 11, 12, 14 & 15 on stabilizing bids, penalty bid clause (when syndicates dump shares back onto underwriters), commercial paper (as it relates to being exempt from SEC regulation), where equity securities trade in the secondary market (I thought NYSE, but it is actually the exchange the company has been listed with), what the lead u/w in a Public Offering earns for each share sold by the syndicate - management fee. i said u/w spread, who attends due dilligence meetings (issuer, u/w and syndicate. i chose only issuer, u/w), what happens to Western account syndicate when there are shares remaining under the agreemnt (I said selling group required to purchase the shares, but the syndicate is required to place them in their own account - similar concept, wrong type of people), and two questions on calculating management fee points/syndicate members.
I was a little bit shocked to see how badly I did on this as I usually test well. But this is entirely foreign material, with lots of regulations and exceptions and so on.
I was a little bit shocked to see how badly I did on this as I usually test well. But this is entirely foreign material, with lots of regulations and exceptions and so on.
Series 7 Exam countdown
I began blogging when I was pregnant with Jimi, more as an online diary of sorts than any other thing. Now that I have him, and his sister Lorin, there's less time to do things like write.
However, as I am studying for the Series 7 exam, it strikes me that I may want to be able to go back at some point in the future and see the things that I had trouble with while studying, so as to enable me to re-study those topics. Also, just to chronicle my life as a newbie in the industry.
Before I get into the actual study material, which will be VERY BORING to 99% of my 1 reader, I want to share the story of my journey to become a financial planner. Wow, just realized this might take more time than I want to from studying...so here's the cliff notes:
- While in SLC in 2001 I lost my job, was having a hard time finding one, frustrated, etc. so I talked to my pastor who asked me a most important question, "if you could do anything you wanted to and time, money and education was not a factor...what would you choose to do?" I replied with "I'd be a financial advisor". So he said, begin to find out how to do that.
- I called around and many SLC firms suggested I first obtain my insurance license. I did.
- I also learned that although financial advisor and financial planner were not interchangable terms, I would like to do both of those job descriptions. In other words, act as an advisor within the scope of comprehensive financial planning.
- I realized that most successful financial planners had the CFP
designation, so I began to take the courses to pass this exam (at the time the CFP Board of Standards did not require those sitting for the exam to have a bachelors degree). This would prove to behoove me in more way than one.
- I got married. Not really important in my career path, but important in life.
- I got a job at an insurance company, and later left that company for almost double pay at another company as a financial analyst. I always said once my husband got out of school and got a job, I would try to get into the financial field, but that it's pay was commission and I needed something guaranteed.
- We moved to Huntsville, AL. I proceeded to have two children in 18 month's time. This actually is important in my career path, as your world totally transforms at this point.
- After our daughter (youngest) turned 18 months, we began to re-evaluate me going back to work in the corporate world. The prospect of which just didn't quite sit right with me. I said, "If I'm going to go get a job and put the kids in daycare, then I am going to go do what I feel like I've been put on this earth to do."
- I went around dropping off resumes at LPL Financial, Morgan Stanley/Dean Whitter, Raymond James, and others. My first stop would prove to be the only one that mattered, as I met the branch manager. That is a good thing because the others did not so much as bother to return my calls.
- The good people at LPL agreed to sponsor me to take the Series 7 and 66 exams. I had to fill out a U-4 form, submit last year's tax return, get fingerprinted and other preliminary paperwork such as list my last five years residence, ten years of job references, etc.
- My branch manager said that most people who start out in the industry do so at wirehouses because they usually give you a base pay plus commission (though, the base is actually more like a "draw"). They also have production requirements and product placement policy that goes against what I feel I want to do for clients. He said I am smart because LPL and other independent broker/dealers pay about 90% versus the other b/d I mention which pay around 65%. If the company charges $1/share commission I'd get $.90 versus $.65. That'll add up.
- I began to study. The Dearborn Publishing material that my branch manager and transition specialist is just a tidge expensive ($300 range) so I grabbed a book at Barnes & Noble called Exam Cram for $40. I'm going to read this while I save for the $300 expenditure.
My test date for the Series 7 is December 29th, 2010 at 9am. The Series 66 is scheduled for January 4th, 2011 at 9 am. Prayers are appreciated.
However, as I am studying for the Series 7 exam, it strikes me that I may want to be able to go back at some point in the future and see the things that I had trouble with while studying, so as to enable me to re-study those topics. Also, just to chronicle my life as a newbie in the industry.
Before I get into the actual study material, which will be VERY BORING to 99% of my 1 reader, I want to share the story of my journey to become a financial planner. Wow, just realized this might take more time than I want to from studying...so here's the cliff notes:
- While in SLC in 2001 I lost my job, was having a hard time finding one, frustrated, etc. so I talked to my pastor who asked me a most important question, "if you could do anything you wanted to and time, money and education was not a factor...what would you choose to do?" I replied with "I'd be a financial advisor". So he said, begin to find out how to do that.
- I called around and many SLC firms suggested I first obtain my insurance license. I did.
- I also learned that although financial advisor and financial planner were not interchangable terms, I would like to do both of those job descriptions. In other words, act as an advisor within the scope of comprehensive financial planning.
- I realized that most successful financial planners had the CFP
designation, so I began to take the courses to pass this exam (at the time the CFP Board of Standards did not require those sitting for the exam to have a bachelors degree). This would prove to behoove me in more way than one.
- I got married. Not really important in my career path, but important in life.
- I got a job at an insurance company, and later left that company for almost double pay at another company as a financial analyst. I always said once my husband got out of school and got a job, I would try to get into the financial field, but that it's pay was commission and I needed something guaranteed.
- We moved to Huntsville, AL. I proceeded to have two children in 18 month's time. This actually is important in my career path, as your world totally transforms at this point.
- After our daughter (youngest) turned 18 months, we began to re-evaluate me going back to work in the corporate world. The prospect of which just didn't quite sit right with me. I said, "If I'm going to go get a job and put the kids in daycare, then I am going to go do what I feel like I've been put on this earth to do."
- I went around dropping off resumes at LPL Financial, Morgan Stanley/Dean Whitter, Raymond James, and others. My first stop would prove to be the only one that mattered, as I met the branch manager. That is a good thing because the others did not so much as bother to return my calls.
- The good people at LPL agreed to sponsor me to take the Series 7 and 66 exams. I had to fill out a U-4 form, submit last year's tax return, get fingerprinted and other preliminary paperwork such as list my last five years residence, ten years of job references, etc.
- My branch manager said that most people who start out in the industry do so at wirehouses because they usually give you a base pay plus commission (though, the base is actually more like a "draw"). They also have production requirements and product placement policy that goes against what I feel I want to do for clients. He said I am smart because LPL and other independent broker/dealers pay about 90% versus the other b/d I mention which pay around 65%. If the company charges $1/share commission I'd get $.90 versus $.65. That'll add up.
- I began to study. The Dearborn Publishing material that my branch manager and transition specialist is just a tidge expensive ($300 range) so I grabbed a book at Barnes & Noble called Exam Cram for $40. I'm going to read this while I save for the $300 expenditure.
My test date for the Series 7 is December 29th, 2010 at 9am. The Series 66 is scheduled for January 4th, 2011 at 9 am. Prayers are appreciated.
Friday, August 20, 2010
Tuesday, July 6, 2010
Nothing Ventured, Nothing Bar-gained
Back when it was still Jon & Kate Plus Eight, I liked to watch the show. One episode followed Kate on her typical trip to the grocery store (!). She said something that resonated with me. Since she stays home with the kids and Jon was the breadwinner, she said the least she could do is contribute to their fiscal health by being frugal with their grocery money. She called it being a good steward. Interesting.
I have to admit that I've always been what one of my friends calls a European shopper. You buy what you need, when you need it and pay what price they are asking for it. With the seemingly recent "couponing" boom, I thought maybe I could seek to stretch our dollars further by giving it a go. After all, Jesus did bless and multiply the little boy's lunch of two fish and five loaves to feed 5,000. So then, I can bless and multiply what I have...
I have one friend who told me all about her affinity for CVS. It sounded very complex and difficult and even though she was really excited and seemed to have saved a lot of money; it didn't seem to me like she needed all of the stuff she bought (at the time...read on to see my conversion). I did get a CVS Extra Care card on her recommendation, but never really did anything with it, because I very rarely ever patronize them.
A second friend recently gave me some tidbits of how she was able to virtually get things for free. Again, it sounded laborious but her methodical system was what convinced me it could be done by lousy shoppers like me. She said she got emails each week on the specials and when I realized I wasn't getting those same emails she said that I must not have given them my email when I signed up. She was right, I didn't want them spamming me with specials. I can't believe how my mind works sometimes.
So, the next day I went online and got $4 just for registering my email. So, I was rewarded for changing my mind about the spam. Next, I spent a good portion of the evening browsing CVS' circular to find items that counted for Extra Care Bucks (ECB). As I understand it, ECB is essentially a dollar value off coupon off of your total order. Once I did that I went through CVS' store coupons and again went to coupons.com to find manufacturer's coupons. Even though it annoyed me that there is not a lot of organizational process occurring, I knew if I did my best that the system would come later.
Something worth mentioning is that we have a flex spending account (FSA) through Dapo's work. His benefit actually gives you a Mastercard with the money they deduct pre-tax from your paycheck loaded onto it. That way it removes the middle man of reimbursement. It is a nice bennie.
I found a couple of things on the ECB offer that I didn't really NEED that I could USE the flexcard for. In particular, Tylenol precise heat patch. On sale for $5.99. Unadvertised, was a $2.00 mfg coupon on the display case. Reducing to $3.99. And I got $2 in ECB for my NEXT purchase. I also got Motrin PM which I did not see in the circular for $9.99. I got $3 ECB. I asked her to ring these up separately from my next purchase because it was through the flex card (you have to provide FSA receipts from time to time, and I prefer my receipts to be compartmentalized).
What is beautiful is that I was able to find things I NEEDED to try this new method of shopping on. Also in the circular was DIAPERS. You know I need those! :D They were "on sale" for $19.99. That's about what Publix and Kroger charge for regular price. But the Pampers were an ECB eligible item, $3. I also had a $2 mfg coupon for Pampers as well. I bought a few other items: deodorant, body wash and toothpaste. The toothpaste was also ECB $2. I am still a little confused about how it all worked, but I only paid $22.16 for the diapers, deodorant, body wash and two tubes of toothpaste. I would have spent $22 on diapers alone at Publix. So it was kind of like getting the other three items for "free".
But the fun doesn't stop there. I now have two coupons for $3, and $2. The next time I go in, I have a $5 coupon.
I don't know if the ECB coupon that prints out at the end of your receipt has to actually be retained and used or if the CVS card recognizes you have earned it and gives you instant credit for it on your purchase. MAYBE ONE OF YOU VETERAN CVS COUPONERS CAN TELL ME? If it doesn't apply automatically, then I actually have four coupons totaling $10; and I'm in the dark as to how I saved $5 for no apparent reason. I'm not complaining, tho.
Another nice thing is that between the items you purchased and your coupons, there is a summary of the trip (how much you saved today) as well as a summary of your endeavors to utilize the ECB offers. It tells you the item, what the offer is, Qty you have purchased toward the reward, and bal remaining to receive reward.
The only drawback is that CVS is about 13 miles from home, round trip. I will need to work my trips there into times I'm already "headed to town" to make it more feasible.
Overall, though, I loved it. I don't exactly understand it all yet...but like anything you get better with practice. I can't wait to make another trip there. They are so smart to have given me incentive to move my business from their competitors! And I can't help that think that the people who shop WITHOUT coupons are essentially paying for the people who shop WITH coupons. Maybe socialism isn't so bad after all?...
I'm definitely just kidding about that last line. And I'm definitely hooked on the couponing. I can't wait to find more deals and bargains. If you get inspired by this, you have to go into the CVS to get a card. Do like me and don't put your email on there. Then, go online and add your email and get $4 to start your adventure off.
If you already coupon, I'd like your input or tricks or methodology or betterment or any clarification you have to offer!
I have to admit that I've always been what one of my friends calls a European shopper. You buy what you need, when you need it and pay what price they are asking for it. With the seemingly recent "couponing" boom, I thought maybe I could seek to stretch our dollars further by giving it a go. After all, Jesus did bless and multiply the little boy's lunch of two fish and five loaves to feed 5,000. So then, I can bless and multiply what I have...
I have one friend who told me all about her affinity for CVS. It sounded very complex and difficult and even though she was really excited and seemed to have saved a lot of money; it didn't seem to me like she needed all of the stuff she bought (at the time...read on to see my conversion). I did get a CVS Extra Care card on her recommendation, but never really did anything with it, because I very rarely ever patronize them.
A second friend recently gave me some tidbits of how she was able to virtually get things for free. Again, it sounded laborious but her methodical system was what convinced me it could be done by lousy shoppers like me. She said she got emails each week on the specials and when I realized I wasn't getting those same emails she said that I must not have given them my email when I signed up. She was right, I didn't want them spamming me with specials. I can't believe how my mind works sometimes.
So, the next day I went online and got $4 just for registering my email. So, I was rewarded for changing my mind about the spam. Next, I spent a good portion of the evening browsing CVS' circular to find items that counted for Extra Care Bucks (ECB). As I understand it, ECB is essentially a dollar value off coupon off of your total order. Once I did that I went through CVS' store coupons and again went to coupons.com to find manufacturer's coupons. Even though it annoyed me that there is not a lot of organizational process occurring, I knew if I did my best that the system would come later.
Something worth mentioning is that we have a flex spending account (FSA) through Dapo's work. His benefit actually gives you a Mastercard with the money they deduct pre-tax from your paycheck loaded onto it. That way it removes the middle man of reimbursement. It is a nice bennie.
I found a couple of things on the ECB offer that I didn't really NEED that I could USE the flexcard for. In particular, Tylenol precise heat patch. On sale for $5.99. Unadvertised, was a $2.00 mfg coupon on the display case. Reducing to $3.99. And I got $2 in ECB for my NEXT purchase. I also got Motrin PM which I did not see in the circular for $9.99. I got $3 ECB. I asked her to ring these up separately from my next purchase because it was through the flex card (you have to provide FSA receipts from time to time, and I prefer my receipts to be compartmentalized).
What is beautiful is that I was able to find things I NEEDED to try this new method of shopping on. Also in the circular was DIAPERS. You know I need those! :D They were "on sale" for $19.99. That's about what Publix and Kroger charge for regular price. But the Pampers were an ECB eligible item, $3. I also had a $2 mfg coupon for Pampers as well. I bought a few other items: deodorant, body wash and toothpaste. The toothpaste was also ECB $2. I am still a little confused about how it all worked, but I only paid $22.16 for the diapers, deodorant, body wash and two tubes of toothpaste. I would have spent $22 on diapers alone at Publix. So it was kind of like getting the other three items for "free".
But the fun doesn't stop there. I now have two coupons for $3, and $2. The next time I go in, I have a $5 coupon.
I don't know if the ECB coupon that prints out at the end of your receipt has to actually be retained and used or if the CVS card recognizes you have earned it and gives you instant credit for it on your purchase. MAYBE ONE OF YOU VETERAN CVS COUPONERS CAN TELL ME? If it doesn't apply automatically, then I actually have four coupons totaling $10; and I'm in the dark as to how I saved $5 for no apparent reason. I'm not complaining, tho.
Another nice thing is that between the items you purchased and your coupons, there is a summary of the trip (how much you saved today) as well as a summary of your endeavors to utilize the ECB offers. It tells you the item, what the offer is, Qty you have purchased toward the reward, and bal remaining to receive reward.
The only drawback is that CVS is about 13 miles from home, round trip. I will need to work my trips there into times I'm already "headed to town" to make it more feasible.
Overall, though, I loved it. I don't exactly understand it all yet...but like anything you get better with practice. I can't wait to make another trip there. They are so smart to have given me incentive to move my business from their competitors! And I can't help that think that the people who shop WITHOUT coupons are essentially paying for the people who shop WITH coupons. Maybe socialism isn't so bad after all?...
I'm definitely just kidding about that last line. And I'm definitely hooked on the couponing. I can't wait to find more deals and bargains. If you get inspired by this, you have to go into the CVS to get a card. Do like me and don't put your email on there. Then, go online and add your email and get $4 to start your adventure off.
If you already coupon, I'd like your input or tricks or methodology or betterment or any clarification you have to offer!
Sunday, April 11, 2010
The Last Train to Clarksville
My first experience with football was a good one. Our first game of the season was Clarksville. We did not win, but we played hard. I rode up with my fellow rookies, Anna Gail (AG) and Suzy (Kicker). Suzy’s significant other, Pam, drove the whole way up and back for us. That was very much appreciated.
The road trip there is about 2 ½ hrs or so. Distances in the South are measured by hours and minutes rather than miles. And depending on whom you ask you will get a different answer how far away something is. This is because most people drive at least 10 mph over the speed limit. Those who drive faster will tell you something is a shorter drive than it might take you.
We stopped along the way to eat at Ruby Tuesday’s. I explained to Pam, Suzy, Anna Gail and the rest of the restaurant how to sell a duck to a deaf man. If you don’t know, just ask me during our next dining experience together.
Thanks to Pam’s interspatial mapping experience, we found the field no problem. We walked through our offense, defense and special teams plays. It seemed as though I blinked and then it was time to kick off.
We won the toss, but then deferred the kick off to Clarksville. Our defense did a good job of holding them but on forth down they went for it rather than punt. That is one thing about women’s football is that sometimes there is just not someone who can punt and the team has no choice but to either make a first down or turn it over on downs (we do not have that problem, our kicker can actually kick). They got the first down and in doing so uncovered a very weak area of our game plan. They kept running to that same weakness and proceeded to score and score and score again.
During the defense’s first time on the field I went in for two or three plays at Linebacker. I got steamrolled by a TE blocking off the edge on one play, and got clobbered by someone else during a cross-field pursuit. I must’ve looked as bad as I felt, because it was after that they pulled me out and sent someone else in.
I started at Tight End and got involved in the game a decent amount. There was one pass that our QB, Katie White, threw to me which we connected for over 20 yards. My first catch in the IWFL! I also got the ball on an end-around which went nowhere.
Unfortunately, shortly after halftime my calf muscle started to cramp up. I tried everything; including drinking 64 oz of strawberry Gatorade, eating three bananas and three mustard packets. It is a wonder I kept that combination down. Dana even came out of the bleachers to come and rub it out…and deliver the mustard. Although she made it feel better, the cramp never went away and was tight the whole way home, the next day, and all throughout the week. I wanted back in but didn’t want to risk tearing it.
Our offense was moving the ball but we had a hard time finishing for points. In fact, our only TD came late in the game on a busted pass play that Katie ran in for six. Our attempt at a two-point conversion failed when Katie was hit hard and sacked. She came out of the game, sat down next to me and told me about how little padding there is in the back of the helmet. I knew she was woozy, and found out the next day that she had suffered a concussion.
We lost 36-6, but we fought hard and we never stopped believing in ourselves. It was loads of fun and although a win would have been preferred, it was still a great experience.
The road trip there is about 2 ½ hrs or so. Distances in the South are measured by hours and minutes rather than miles. And depending on whom you ask you will get a different answer how far away something is. This is because most people drive at least 10 mph over the speed limit. Those who drive faster will tell you something is a shorter drive than it might take you.
We stopped along the way to eat at Ruby Tuesday’s. I explained to Pam, Suzy, Anna Gail and the rest of the restaurant how to sell a duck to a deaf man. If you don’t know, just ask me during our next dining experience together.
Thanks to Pam’s interspatial mapping experience, we found the field no problem. We walked through our offense, defense and special teams plays. It seemed as though I blinked and then it was time to kick off.
We won the toss, but then deferred the kick off to Clarksville. Our defense did a good job of holding them but on forth down they went for it rather than punt. That is one thing about women’s football is that sometimes there is just not someone who can punt and the team has no choice but to either make a first down or turn it over on downs (we do not have that problem, our kicker can actually kick). They got the first down and in doing so uncovered a very weak area of our game plan. They kept running to that same weakness and proceeded to score and score and score again.
During the defense’s first time on the field I went in for two or three plays at Linebacker. I got steamrolled by a TE blocking off the edge on one play, and got clobbered by someone else during a cross-field pursuit. I must’ve looked as bad as I felt, because it was after that they pulled me out and sent someone else in.
I started at Tight End and got involved in the game a decent amount. There was one pass that our QB, Katie White, threw to me which we connected for over 20 yards. My first catch in the IWFL! I also got the ball on an end-around which went nowhere.
Unfortunately, shortly after halftime my calf muscle started to cramp up. I tried everything; including drinking 64 oz of strawberry Gatorade, eating three bananas and three mustard packets. It is a wonder I kept that combination down. Dana even came out of the bleachers to come and rub it out…and deliver the mustard. Although she made it feel better, the cramp never went away and was tight the whole way home, the next day, and all throughout the week. I wanted back in but didn’t want to risk tearing it.
Our offense was moving the ball but we had a hard time finishing for points. In fact, our only TD came late in the game on a busted pass play that Katie ran in for six. Our attempt at a two-point conversion failed when Katie was hit hard and sacked. She came out of the game, sat down next to me and told me about how little padding there is in the back of the helmet. I knew she was woozy, and found out the next day that she had suffered a concussion.
We lost 36-6, but we fought hard and we never stopped believing in ourselves. It was loads of fun and although a win would have been preferred, it was still a great experience.
Monday, February 15, 2010
Kids Pray the Darndest Things
On Saturday, we had memorial services for a member of our church who passed away. As members of the praise and worship team, my husband and I were participants in the service. We arrived to practice and had no sooner taken our jackets off when I saw Lorin bump her head hard on a chair. In fact, it was on the metallic loop that sticks out underneath in the event it would latch up to another chair.
It took her a second to start crying, but I saw how hard she hit it and I knew that it was going to hurt, so I picked her right up. When she did start crying, blood began just gushing out of her forehead. At first, I couldn't figure out where it was coming from, I thought maybe her nose. I took her to the bathroom to get towels to put pressure on it, and it kept bleeding and bleeding. I thought we would need to go to the ER for stitches, so I returned to the sanctuary to beckon for Dapo.
In the midst of the excitement, I forgot that there was a casket with a dead body that people were trying to pay their respects to. I sincerely felt...well, mortified. But I kicked into Mama Bear mode and it was only once the bleeding stopped I was able to begin to apologize for the drama.
Thankfully, my friend and nurse extraordinaire was there and saw the blood running down Lorin's face. She came to look at her and helped me get some steri strips and bandaged her up, saving us a trip to get stitches. She even took Jimi so that Dapo could get back to practice. AND she watched the kids during the service. Thank God for good friends. The church staff was awesome, too, helping me to get what I needed for Lorin and helping me to calm down and praying for her.
Since then, I have been reminding Jimi not to touch Sissy's head, because she has an owie on it. This morning when I prompted him with the reminder, he took his hand and placed it gently on her back, saying, "I'll pray for her." He continued, "In Jesus' name, I pray...owie, get better! In Jesus' name, Aaaaaa-men."
It was so sweet I almost cried. It was a big, warm fuzzy moment for sure. Just when you get tired of telling them not to fight over a toy, they go and pray for each other.
It took her a second to start crying, but I saw how hard she hit it and I knew that it was going to hurt, so I picked her right up. When she did start crying, blood began just gushing out of her forehead. At first, I couldn't figure out where it was coming from, I thought maybe her nose. I took her to the bathroom to get towels to put pressure on it, and it kept bleeding and bleeding. I thought we would need to go to the ER for stitches, so I returned to the sanctuary to beckon for Dapo.
In the midst of the excitement, I forgot that there was a casket with a dead body that people were trying to pay their respects to. I sincerely felt...well, mortified. But I kicked into Mama Bear mode and it was only once the bleeding stopped I was able to begin to apologize for the drama.
Thankfully, my friend and nurse extraordinaire was there and saw the blood running down Lorin's face. She came to look at her and helped me get some steri strips and bandaged her up, saving us a trip to get stitches. She even took Jimi so that Dapo could get back to practice. AND she watched the kids during the service. Thank God for good friends. The church staff was awesome, too, helping me to get what I needed for Lorin and helping me to calm down and praying for her.
Since then, I have been reminding Jimi not to touch Sissy's head, because she has an owie on it. This morning when I prompted him with the reminder, he took his hand and placed it gently on her back, saying, "I'll pray for her." He continued, "In Jesus' name, I pray...owie, get better! In Jesus' name, Aaaaaa-men."
It was so sweet I almost cried. It was a big, warm fuzzy moment for sure. Just when you get tired of telling them not to fight over a toy, they go and pray for each other.
Thursday, February 4, 2010
Lorin's One Year Checkup
Wow. It’s hard to believe a year has gone by since my second baby was born! She is SO big. 27 ¼ lbs, 32 inches, and on course to reach 5’10 to 6’ feet tall. Not really surprising as she was born 8 lbs 9 oz and 20 inches long. Still, she has grown almost 19 pounds and an entire foot since birth.
When we arrived at our appointment, there was a lady with a newborn so tiny it must’ve been her very first weigh in. In fact, I had to look twice; because she was so tiny she looked like a doll. The mother just sat there and stared at the baby. I didn’t bother her, although if I could have had a moment where I was not refereeing books and bouncing a child on each knee…I would’ve told her there was a waiting room especially for newborns.
Neither of my children were so little anyone had to second guess them. Nonetheless, it reminded me of my very first checkup with Jimi. Another lady in the waiting room said to me, “Is this your first?” I replied, “Yes,” to which she added, “I can tell. Aren’t they just amazing?”
It’s true. You just cannot believe that this creature has come out of you, and it is incredibly mesmerizing the love you feel for them. Nothing can compare to the feeling of not only did I create this, but it came out of me.
I told Jimi the story of the lady in the doctor's office when he was little, and although it was lost on him, I enjoyed the sweet memory. I was just hoping he’d try to be quiet enough not to wake the baby, although I’m sure being naked on the cold scale would do so anyhow.
It wasn’t long before Lorin’s name was called and we were back to arguing over books, jackets and backpacks. Although I’ve come to enjoy the ruckus my two small children provide me and love to listen to Jimi talk and Lorin babble, I sure miss moments like I had when they were newborn…quiet and asleep.
When we arrived at our appointment, there was a lady with a newborn so tiny it must’ve been her very first weigh in. In fact, I had to look twice; because she was so tiny she looked like a doll. The mother just sat there and stared at the baby. I didn’t bother her, although if I could have had a moment where I was not refereeing books and bouncing a child on each knee…I would’ve told her there was a waiting room especially for newborns.
Neither of my children were so little anyone had to second guess them. Nonetheless, it reminded me of my very first checkup with Jimi. Another lady in the waiting room said to me, “Is this your first?” I replied, “Yes,” to which she added, “I can tell. Aren’t they just amazing?”
It’s true. You just cannot believe that this creature has come out of you, and it is incredibly mesmerizing the love you feel for them. Nothing can compare to the feeling of not only did I create this, but it came out of me.
I told Jimi the story of the lady in the doctor's office when he was little, and although it was lost on him, I enjoyed the sweet memory. I was just hoping he’d try to be quiet enough not to wake the baby, although I’m sure being naked on the cold scale would do so anyhow.
It wasn’t long before Lorin’s name was called and we were back to arguing over books, jackets and backpacks. Although I’ve come to enjoy the ruckus my two small children provide me and love to listen to Jimi talk and Lorin babble, I sure miss moments like I had when they were newborn…quiet and asleep.
Lorin's One Year Checkup
Lorin’s checkup.
Wow. It’s hard to believe a year has gone by since my second baby was born! She is SO big. 27 ¼ lbs, 32 inches, and on course to reach 5’10 to 6’ feet tall. Not really surprising as she was born 8 lbs 9 oz and 20 inches long. Still, she has grown almost 19 pounds and an entire foot since birth.
When we arrived at our appointment, there was a lady with a newborn so tiny it must’ve been her very first weigh in. In fact, I had to look twice; because she was so tiny she looked like a doll. The mother just sat there and stared at the baby. I didn’t bother her, although if I could have had a moment where I was not refereeing books and bouncing a child on each knee…I would’ve told her there was a waiting room especially for newborns.
Neither of my children were so little anyone had to second guess them. Nonetheless, it reminded me of my very first checkup with Jimi. Another lady in the waiting room said to me, “Is this your first?” I replied, “Yes,” to which she added, “I can tell. Aren’t they just amazing?”
It’s true. You just cannot believe that this creature has come out of you, and it is incredibly mesmerizing the love you feel for them. Nothing can compare to the feeling of not only did I create this, but he came out of me.
I told Jimi the story of the lady in the office when he was little, and although it was lost on him, I enjoyed the sweet memory. I was just hoping he’d try to be quiet enough not to wake the baby, although I’m sure being naked on the cold scale would do so anyhow.
It wasn’t long before Lorin’s name was called and we were back to arguing over books, jackets and backpacks. Although I’ve come to enjoy the ruckus my two small children provide me and love to listen to Jimi talk and Lorin babble, I sure miss moments like I had when they were newborn…quiet and sleeping.
Wow. It’s hard to believe a year has gone by since my second baby was born! She is SO big. 27 ¼ lbs, 32 inches, and on course to reach 5’10 to 6’ feet tall. Not really surprising as she was born 8 lbs 9 oz and 20 inches long. Still, she has grown almost 19 pounds and an entire foot since birth.
When we arrived at our appointment, there was a lady with a newborn so tiny it must’ve been her very first weigh in. In fact, I had to look twice; because she was so tiny she looked like a doll. The mother just sat there and stared at the baby. I didn’t bother her, although if I could have had a moment where I was not refereeing books and bouncing a child on each knee…I would’ve told her there was a waiting room especially for newborns.
Neither of my children were so little anyone had to second guess them. Nonetheless, it reminded me of my very first checkup with Jimi. Another lady in the waiting room said to me, “Is this your first?” I replied, “Yes,” to which she added, “I can tell. Aren’t they just amazing?”
It’s true. You just cannot believe that this creature has come out of you, and it is incredibly mesmerizing the love you feel for them. Nothing can compare to the feeling of not only did I create this, but he came out of me.
I told Jimi the story of the lady in the office when he was little, and although it was lost on him, I enjoyed the sweet memory. I was just hoping he’d try to be quiet enough not to wake the baby, although I’m sure being naked on the cold scale would do so anyhow.
It wasn’t long before Lorin’s name was called and we were back to arguing over books, jackets and backpacks. Although I’ve come to enjoy the ruckus my two small children provide me and love to listen to Jimi talk and Lorin babble, I sure miss moments like I had when they were newborn…quiet and sleeping.
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