SIE Practice Exam/Questions & Answers/Updated

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No- Load Mutual funds may have lower expense ratios than load mutual funds for which reason? (ANS- No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points Under normal ... circumstances, a customer's letter of intent on a mutual fund purchase is valid for what maximum period of time? (ANS- 13 months At the time of issuance, which of the following securities normally has the longest period to expiration? (ANS- Warrants Under the Securities act of 1933, registration is required for which of the following securities? (ANS- American Depository receipts (ADRs) the primary purpose of a syndicate desk in the context of an equity offering is to (ANS- build an order book and allocate the stock what is the cost basis of an inherited mutual fund? (ANS- the net asset value (NAV) of the shares when the owner dies which of the following actions is required when a firm receives cash in excess of 10k from one customer in one business day? (ANS- File a currency transaction report (CTR) under rule 144a, an issuer of restricted stock is permitted to sell to which of the following investors? (ANS- qualified institutional buyers (QIBs) a savings account at a bank is guaranteed by which of the following entities (ANS- FDIC an associated person who is not a registered rep is permitted to engage in what activity (ANS- provide account opening forms to a new customer under industry regulations, an initial purchase of 3k of common stock in a margin account requires a cash deposit of (ANS- 2k (2k or 100% or purchase price, whatever is cheaper) which of the following investment risks is the greatest risk in a variable life insurance policy? (ANS- market risk a registered rep who wants to place a mutual fund advertisement must obtain written approval from which of the following parties? (ANS- a registered principal of the RR's firm in the event of a stock split, who is required to maintain a record of the shareholders eligible to receive the additional shares? (ANS- transfer agent which of the following outcomes are possible for the writer of a covered call option? (ANS- profit limited and loss limited which of the following actions is required of a broker dealers aml program? (ANS- designating an aml compliance officer at issue, which of the following debt securities mature in one year or less? (ANS- money market instruments [Show More]

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