Free FINRA Series 7 (General Securities Representative) Formula Sheet (2026)

Every Series 7 formula you need on the test, grouped by topic, rendered with full math notation. 34 formulas across 4 topics, calibrated to the 2026 syllabus. Free forever, no signup required.

34 Formulas
4 Topics
2026 Syllabus
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All Series 7 Formulas

Seeking Business for the Broker-Dealer 8 items
Covered call — max gain, max loss, breakeven
Long stock S0S_0 + short call strike KK, premium PP.
Max Gain=(K−S0)+P\text{Max Gain} = (K - S_0) + P at S≥KS \geq K
Max Loss=S0−P\text{Max Loss} = S_0 - P
Breakeven=S0−P\text{Breakeven} = S_0 - P
Long straddle — breakevens
Long call + long put, same KK, same expiry. Cost = Pc+PpP_c + P_p.
Up BE=K+Pc+Pp\text{Up BE} = K + P_c + P_p
Down BE=K−Pc−Pp\text{Down BE} = K - P_c - P_p
Max loss=Pc+Pp\text{Max loss} = P_c + P_p (at S=KS=K)
Bull call spread (debit spread) — max gain, max loss
Long call K1K_1 + short call K2K_2 (K1<K2K_1<K_2). Net debit DD.
Max Gain=(K2−K1)−D\text{Max Gain} = (K_2 - K_1) - D
Max Loss=D\text{Max Loss} = D
Breakeven=K1+D\text{Breakeven} = K_1 + D
Net investment income (mutual fund)
NII=(Dividends+Interest)−Fund ExpensesNII = (Dividends + Interest) - Fund\ Expenses — NII = net investment income; capital gains are excluded
Underwriting spread
Spread=Ppublic−Pissuer\text{Spread} = P_{\text{public}} - P_{\text{issuer}} — P_public = public offering price per share, P_issuer = price syndicate pays issuer per share
Selling concession from total spread
C=S−M−UC = S - M - U — C = selling concession per share, S = total spread, M = manager's fee per share, U = underwriting fee per share
Eastern (undivided) account unsold share liability
Li=pi×UL_i = p_i \times U — L_i = member i's unsold-share liability, p_i = member's participation percentage, U = total unsold shares across syndicate
Green shoe overallotment maximum
Gmax⁡=0.15×NG_{\max} = 0.15 \times N — G_max = maximum additional shares manager may purchase, N = original offering size in shares
Opening Accounts 3 items
Bond accrued interest (30/360 convention)
AI=Annual Coupon360×Days Since Last Coupon\text{AI} = \dfrac{\text{Annual Coupon}}{360} \times \text{Days Since Last Coupon}
30/360: each month = 30 days. Corp + muni bonds.
Treasuries use actual/actual.
529 plan superfunding maximum contribution
Cmax=5×GC_{max} = 5 \times G — C_max = maximum lump-sum 529 contribution treated as 5 years of gifts, G = annual gift tax exclusion
Rule 144 affiliate volume limit per 3-month period
Max sale=max⁡(0.01×Sout, Vˉ4w)\text{Max sale} = \max(0.01 \times S_{out},\ \bar{V}_{4w}) — S_out = total outstanding shares, V̄_4w = average weekly trading volume over preceding 4 weeks
Investment Products and Recommendations 4 items
SMA in a long margin account
SMA=Equity−0.5×LMVSMA = Equity - 0.5 \times LMV — Equity = LMV − DR, LMV = long market value, 0.5 = Reg T initial requirement
Short margin account equity
Equity=CR−SMVEquity = CR - SMV — CR = credit balance (proceeds + Reg T), SMV = current short market value
Long margin account equity
Equity=LMV−DREquity = LMV - DR — LMV = long market value, DR = debit balance
Short margin account credit balance
CR=Proceeds+RegT depositCR = Proceeds + Reg T\ deposit — CR = credit balance, Proceeds = short sale proceeds, Reg T deposit = 50% of proceeds
Processing Transactions 19 items
Margin call price (long position)
Pcall=P0×1−IM1−MMP_{\text{call}} = P_0 \times \dfrac{1 - IM}{1 - MM}
Reg T IM=50%, FINRA MM=25%: Pcall=23P0P_{\text{call}} = \dfrac{2}{3} P_0.
Price at which equity hits maintenance threshold.
Quick ratio
QR=CA−InvCLQR = \dfrac{CA - Inv}{CL} — CA = current assets, Inv = inventory, CL = current liabilities
Sharpe ratio
S=Rp−RfσpS = \dfrac{R_p - R_f}{\sigma_p} — R_p = portfolio return, R_f = risk-free rate, σ_p = portfolio standard deviation
Price-to-earnings ratio
P/E=PEPSP/E = \dfrac{P}{EPS} — P = market price per share, EPS = earnings per share
Earnings per share (EPS)
EPS=NI−DpSEPS = \dfrac{NI - D_p}{S} — NI = net income, D_p = preferred dividends, S = common shares outstanding
Mutual fund public offering price (POP) from NAV and sales charge
POP=NAV/(1−SC)POP = NAV / (1 - SC) — NAV = net asset value per share, SC = sales charge expressed as a decimal percent of POP
Mutual fund sales charge percentage
SC%=(POP−NAV)/POPSC\% = (POP - NAV) / POP — POP = public offering price, NAV = net asset value per share; denominator is always POP, not NAV
Mutual fund net asset value (NAV) per share
NAV=(Assets−Liabilities)/SharesNAV = (Assets - Liabilities) / Shares — Assets = total fund assets, Liabilities = total fund liabilities, Shares = shares outstanding
Closed-end fund discount or premium to NAV
Discount%=(NAV−P)/NAVDiscount\% = (NAV - P) / NAV — NAV = net asset value per share, P = market price; positive = discount, negative = premium
Bear put spread maximum gain (debit)
Max Gain=(KH−KL)−Prnet\text{Max Gain} = (K_H - K_L) - Pr_{net} — K_H = higher (long) strike, K_L = lower (short) strike, Pr_net = net debit paid
Put option intrinsic value
IVput=max⁡(0,  K−M)IV_{put} = \max(0, \; K - M) — K = strike price, M = market price of underlying; zero if out of the money
Protective put maximum loss
Max Loss=[(P−K)+Pr]×100\text{Max Loss} = [(P - K) + Pr] \times 100 — P = stock purchase price, K = put strike, Pr = premium paid per share
Call option intrinsic value
IVcall=max⁡(0,  M−K)IV_{call} = \max(0, \; M - K) — M = market price of underlying, K = strike price; zero if out of the money
Taxable equivalent yield (TEY) for a municipal bond
TEY=tax-free yield1−t\text{TEY} = \dfrac{\text{tax-free yield}}{1 - t} — t = investor's marginal federal tax rate; TEY is always greater than the muni yield
Parity price of a convertible bond
Parity=conversion ratio×Ps\text{Parity} = \text{conversion ratio} \times P_s — conversion ratio = par / conversion price, P_s = current market price of the underlying common stock
Conversion ratio of a convertible bond
Conversion ratio=par valueconversion price\text{Conversion ratio} = \dfrac{\text{par value}}{\text{conversion price}} — par = bond's face value (typically $1,000), conversion price = price per share fixed in the indenture
Debt service coverage ratio under a net revenue pledge
DSCR=Gross Revenue−O&MAnnual Debt Service\text{DSCR} = \dfrac{\text{Gross Revenue} - \text{O\&M}}{\text{Annual Debt Service}} — O&M = operating and maintenance expenses; coverage above 1.0x means revenue covers debt
Foreign equity dollar return with currency translation
RUSD=P1×FX1P0×FX0−1R_{USD} = \dfrac{P_1 \times FX_1}{P_0 \times FX_0} - 1 — P = local price, FX = exchange rate (USD per foreign unit), 0 = start, 1 = end
Bond price change approximation from duration
%ΔP≈−D×Δy\%\Delta P \approx -D \times \Delta y — D = duration (years), Δy = change in yield (decimal, e.g. 0.0050 for 50 bps)

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