series 7 formulas

Outstanding stock formula

issues stock-outstanding stock

Stock dividend new number shares

Number shares owned * dividend %

Dividend: new cost basis per share

Total investment / new total shares owned

Market capitalization

Current market price * number shares outstanding

Capital gain/loss gifted securities

Sales price-donor cost basis or market value at time of gift (whichever lower)

Inherited securities gain or loss

Sales price-market value at death (always long term)

Conversion ratio

Par value (100)/conversion price

Parity price of common stock

Preferred price/conversion ratio

Parity price convertible preferred stock

Common stock price*conversion ratio

Current yield

Annual interest/current market price

Conversion ratio convertible bond

Par value (1000)/conversion price

Parity price common stock

Bond price/conversion ratio

Parity price convertible bond

Common stock price*conversion ratio

municipal tax equivalent yield

Municipal yield/(100%-tax bracket %)

Net after tax yield

Taxable yield * (100%-tax bracket%)

Capital gain/loss of municipal bond purchased at premium sold prior to maturity

Sale price-amortized basis

Government/agency securities quoted in

1/32

Sales charge %

(POP- nav)/pop

Pop

Nav/(100%-sales charge %)

Breakeven long stock long put (protective put)

Cost stock+premium

Break even covered call (long stock short call)

Stock-premium

Breakeven protective call (short stock long call)

Short sale proceeds-premium

Covered put break even (short stock short put)

Short sale proceeds + premium

Balance sheet formula

Total assets= total liabilities + SHE

Working capital

Current assets/current liabilities

Quick asset ratio

(Current assets-inventory)/(current liabilities)

Debt to equity ratio

Debt/SHE

EPS

(Net income-preferred dividends)/(common shares outstanding)

Current yield

Annual dividend/current price

Dividend payout ratio

Annual common stock dividend/eps

Pe ratio

Market price/eps

Equity long margin account

LMV-debt

Equity short margin account

Credit balance-SMV

Combined equity

=LMV+credit-debt -SMV

Min maintenance requirement long position

25% LMV

Min maintenance short position

30% smv

Margin requirement leveraged etf

Leverage factor * min maintenance requirement