Understanding Trading Halts

The market’s intense reaction to the coronavirus has caused something not seen since 1997: trading halts. Continue reading

Understanding Trading Halts

The market’s intense reaction to the coronavirus has caused something not seen since 1997: trading halts. If you’re studying for the FINRA Series 7 General Securities Representative exam or the FINRA Series 24 General Securities Principal exam, FINRA may test you on the subject. Rest assured, Solomon Exam Prep’s Series 7 and Series 24 study materials cover the topic in detail. Here’s a little background on trading halts.
 
Sometimes called “circuit breakers,” these trading halts were first put in place after the 1987 stock market crash known as Black Monday. Part of the reason the Black Monday crash was so bad was the panic selling that happened once the market started dropping. A trading halt is meant to prevent this panicked free fall.
 
A trading halt may apply to the entire market, or a single security.
 

Market-Wide Trading Halts

A market-wide trading halt will be triggered when the S&P 500 drops sharply from where it was the day before. A Level 1 halt is triggered by a 7% drop and lasts for 15 minutes. If the drop reaches 13%, it triggers a Level 2 halt. A level 2 halt also lasts 15 minutes. Finally, a 20% drop in the S&P 500 triggers a Level 3 halt, which stops trading for the rest of the day. These kind of halts stop securities and options trading on all the exchanges, as well as the OTC markets.  
 
Trading Pauses in a Single Security
 
When a company makes a major announcement, it’s stock price may move dramatically. Pausing trading of a particular stock or security protects smaller investors who generally cannot react as quickly to the news as larger investors. If the price of a security drops a certain amount below what it normally trades at, the security is said to be “limit down.” If it stays limit down for 15 seconds, then trading in that security is paused for 5 minutes. Unlike market-wide trading halts, the same goes if the price of a single security rises rapidly. If a security is “limit up” for 15 seconds, trading pauses for 5 minutes. How much a security has to move to be limit up or limit down depends on the type of stock and its normal price range.
 
Your Securities Exams
 
Trading halts are topics on the FINRA Series 7 and Series 24 exams. Solomon Exam Prep covers trading halts in Solomon study guides, audio guides, video lectures, exam simulators and digital flashcards. For more information, go to www.SolomonExamPrep.Com or call 503.601.0212.
 

16 Study-From-Home Tips From Solomon Exam Prep

Get both general home-study tips and specific home-study tips for securities exams. Continue reading

GENERAL HOME-STUDY TIPS

  • Find a quiet place that you feel comfortable in – try to study in this same place every day
  • Unless you’re using your phone to study with, put the phone in another room.
  • Wake up early – getting started is the hardest part, and starting in the morning will make studying easier. You will get in several hours before you know it.
  • Make small goals.
  • Reward yourself – try to get up and walk around at least every 30 minutes. This will rest your eyes and mind.
  • If you start to feel anxious – take a deep breath, counting to four as you inhale, then slowly exhale, counting to seven as you exhale. Repeat. This will lower your anxiety. This is a good strategy to use before your exam.
  • Ask for help being accountable: find someone in your life to query you every day about what you have accomplished.
  • Go for a walk in a natural or green setting.  Studies show that your mind relaxes and you remember more if you take regular walks in a natural or green setting. 
  • Get a good night’s sleep – try to go to sleep at the same time each night and wake up at the same time. 

SPECIFIC HOME-STUDY TIPS FOR SECURITIES EXAMS

  • Read the Solomon Study Guide. Remember: the number one reason people fail their securities exam is they didn’t read the Study Guide.
  • If you’re having trouble reading the Study Guide, listen to the Solomon Audio Guide while you read the Study Guide.  
  • Read Exam Notes in the Resources folder.
  • If you don’t understand a question or concept, email Solomon’s Ask the Professor.
  • If you’re having trouble with something, create note cards and try to teach it to someone else. Becoming the teacher is the most effective tool to learn something you find challenging or difficult.
  • After reading the Solomon Study Guide, take at least six practice exams in the Solomon Exam Simulator.  
  • Use Interactive Review to review the Exam Simulator questions you get incorrect.

Solomon Exam Prep has helped thousands pass the SIE and the Series 3, 6, 7, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82 and 99.  For more information, go to www.SolomonExamPrep.Com or call 503.601.0212.

The FINRA Series 22: Basic Exam Preparation

Get answers to some of your burning Series 22 questions from Jeremy Solomon, Solomon Exam Prep owner and president, plus test day tips! Continue reading

Did you know that the FINRA Series 22 exam is a much easier path to becoming a direct participation program representative than the Series 7?  A shorter exam requiring less study time, and you’re on your way to being qualified to solicit and sell interests in DPPs, including real estate, oil and gas, equipment leasing, BDCs, agricultural, like-kind exchanges, etc.

Click on the video link above and get answers to some of your burning Series 22 questions from Jeremy Solomon, Solomon Exam Prep owner and president, plus test day tips!

Solomon Live Web Classes Coming Soon….

Solomon Exam Prep’s Live Web Classes give you the opportunity to learn from and interact with an instructor in real time, from the comfort of your own home or office. Our instructors are experts and focus their classes on the aspects that will be most valuable in helping you pass your exam.

Classes are taken online via computer, tablet or smart phone. Internet access is required. The sessions are recorded and made available for later viewing if your schedule prevents you from attending all of the sessions.

Classes coming up in March and April:
Series 7 Top-Off: March 28th & 29th, 10:30 am – 3 pm ET
Series 24: March 30th – April 3rd, 2:30 – 4:30 ET
Series 63: April 2nd, 2 – 3:30 pm ET & April 3rd, 12:00 – 3:30 pm ET
Series 65: March 30th – April 3rd, 12:00 – 3:30 pm ET
Series 66: March 30th – April 3rd, 12:00 – 3:30 pm ET

March Study Question of the Month

This month’s study question from the Solomon Online Exam Simulator question database is now available. Continue reading

This month’s study question from the Solomon Online Exam Simulator question database is now available.

***Submit your answer to info@solomonexamprep.com or comment below to be entered to win a $20 Starbucks gift card.***

In the event of a default on a series of bonds, which of the following actions is a trustee most likely to take?
 
Answers:
 
A. Accelerate the bonds to maturity
 
B. Ensure that the bonds are held by a qualified custodian
 
C. Sue the issuer in civil court
 
D. Postpone the interest payments

Join Solomon’s Upcoming Series 79 Live Web Class!

Calling all lonely Investment Bankers to be! If you’re studying for the FINRA Series 79 exam and you don’t want to do it all by yourself: Solomon Exam Prep to the rescue.  Solomon Exam Prep is pleased to announce a weekend Series 79 exam prep intensive class on February 29 & March 1, 10-2:30 ET. Continue reading

Calling all lonely Investment Bankers to be! If you’re studying for the FINRA Series 79 exam and you don’t want to do it all by yourself: Solomon Exam Prep to the rescue.  Solomon Exam Prep is pleased to announce a weekend Series 79 exam prep intensive class on February 29 & March 1, 10-2:30 ET.

The Series 79 exam requires a broad knowledge of the rules, regulations, and industry practices that govern US capital markets and investment banking. The questions on the exam are drawn from three different subject areas that FINRA deems to represent the major job functions of entry-level investment bankers: 

  • Collection, Analysis, and Evaluation of Data (37 questions)
  • Underwriting/New Financing Transactions, Types of Offerings, and Registration of Securities (20 questions)
  • Mergers and Acquisitions, Tender Offers, and Financial Restructuring Transactions (18 questions)

Solomon recommends studying 80-100 hours over a six-week period. Already studying for the Series 79 and looking for an additional way to boost your learning? Our next Live Web Class for the Series 79 is on February 29th and March 1st and covers everything you need to know to pass the exam. And if you purchase the class as part of a materials package, you receive a discount off the cost of the class! Can’t attend the class in real time? Attendees can access a recording of the class for 15 days. 

To learn more and sign up, go to https://solomonexamprep.com/series777/ or call Customer Service at 503-601-0212.

February Study Question of the Month

Sarah, age 30, wants to begin saving for retirement. She is unmarried and has $5000 to put in a retirement vehicle. Which would be the BEST recommendation for her to invest in. Continue reading

Sarah, age 30, wants to begin saving for retirement. She is unmarried and has $5000 to put in a retirement vehicle. Which would be the BEST recommendation for her to invest in.

  1. Put $2500 in an IRA, and $2500 in a variable annuity
  2. Put all $5000 into an IRA
  3. Put all $5000 into a variable annuity
  4. Put all $5000 into a variable annuity within an IRA

Answer: 3. RMD rules apply to all employer-sponsored retirement plans including 401(k) and 403(b) plans.

Explanation: RMD is determined by the account-holder’s life-expectancy and the age of their beneficiary. The RMD must be drawn from qualified retirement accounts by April 1st of the year following the account holder’s 72nd birthday, unless the account holder turned 70 1/2 in 2019 or earlier, in which case RMDs must start when the account-holder is 70 and 1/2. RMD rules apply to all employer-sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. The RMD rules also apply to Roth 401(k) accounts, which are a hybrid of the Roth IRA and the traditional 401(k) plan. However, the RMD rules do not apply to Roth IRAs while the owner is alive. An account owner may withdraw more than the RMD, the “M“ stands for minimum not maximum. However, RMDs may not be rolled over to a new tax-deferred account.

The University of Dallas Partners with Solomon Exam Prep on SIE Class

The University of Dallas is incorporating Solomon’s SIE materials into its SIE exam prep class. Continue reading

Solomon Exam Prep is pleased to announce that the University of Dallas Executive Education is offering a Spring 2020 SIE Certification Exam Prep Class incorporating Solomon Exam Prep’s Securities Industry Essentials (SIE) exam prep materials. The course will prepare individuals to sit for the FINRA SIE examination and will take place on Thursday evenings from March 5-May 7, 2020.  Brandon Truitt, MS, CFP®, MPAS®, CRPC® is the instructor.

Ohio University Partners with Solomon Exam Prep on SIE Curriculum

Ohio University’s College of Business has selected Solomon Exam Prep as its Securities Industry Essentials (SIE) exam prep vendor. Continue reading

Solomon Exam Prep is thrilled to announce that Ohio University’s College of Business has selected Solomon Exam Prep as its Securities Industry Essentials (SIE) exam prep vendor.  

Solomon Exam Prep works with dozens of colleges and universities offering SIE and other securities and investing education.

 The SIE exam is the foundational securities exam.  Unlike most securities exams, the SIE does not require employment or sponsorship by a FINRA member firm.  The only requirement to take the SIE is that you be at least 18 years old.

Solomon Exam Prep has helped thousands pass securities licensing exams including the SIE and the Series 3, 6, 7, 14, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82 and 99.