SIE practice exam Questions with
Accurate answers. Verified 100%.
A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is - ✔✔-
600
Your customer is long 1 October 75 put at 2. T
...
SIE practice exam Questions with
Accurate answers. Verified 100%.
A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is - ✔✔-
600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is - ✔✔-7300
Large time deposits of more than $100,000 are considered to be found in what part of the money
supply? - ✔✔-M3
By purchasing shares of stock in a company, investors can benefit from which of the following?
An increase in the price of the shares
An increase in price of the company's debt securities
An increase in the yield of the company's outstanding debt securities
The receipt of profits to be distributed - ✔✔-An Increase in price of shares and The receipts of profit to
be distributed
An offering in which one or more stockholders in the corporation are selling all or a portion of their own
shares to the investing public for the first time is known as - ✔✔-a secondary offering
Which of the following is an example of an unsecured debt security?
Debenture
Preferred stock
Mortgage bond
Income bond - ✔✔-Debenture and Income bond
Mutual funds that market directly to the public, using no underwriter and charging no sales charge, are
called - ✔✔-No load funds
During the cooling-off period, underwriters of new securities may
accept orders to purchase shares
not accept orders to purchase shares
not accept indications of interest regarding potential purchases of shares
accept indications of interest regarding potential purchases of shares - ✔✔-not accept orders to
purchase shares and accept indications of interest regarding potential purchase of shares
The USA PATRIOT Act's required Customer Identification Program is designed chiefly to prevent
real estate fraud
funding of terrorist activities
use of insider information
money laundering - ✔✔-funding of terrorist activity and money laundering
The firm element of a broker-dealer's continuing education requirement must be undergone by all
registered persons who - ✔✔-have direct contact with the public
An August 15 call is written at 4. The call expires without being exercised by the owner. The writer of the
call - ✔✔-keeps the $400 received when the call was written
A mutual fund can offer all of the following to investors EXCEPT - ✔✔-physical custody of the fund's
portfolio cash and securities
In an LP, which of the following is TRUE? - ✔✔-The partnership entity is not responsible for paying taxes
on gains
MAS Corporation has enjoyed an extremely profitable year. It has been determined that those owning
the MAS 4% preferred, participating to 6% preferred shares, will receive the full participating dividend.
The participating shareholders will receive an additional dividend of - ✔✔-2%
A registered representative has a customer buying securities, but rather than paying in full, the
customer wants to borrow some of the money needed for the purchase from the broker-dealer. It is
explained to the customer that in order to borrow the money, there will be interest payable based on -
✔✔-the broker call loan rate
In the dividend disbursement process three of the four critical dates are determined by the board of
directors but one is determined by either FINRA for OTC stocks or the exchange for listed stocks. Which
one is it? - ✔✔-ex dividend
An investor owns 500 shares of stock whose current market value is $20 per share. The stock undergoes
a split, after which the investor owns 400 shares. What is the new price of the investor's stock? - ✔✔-
$25 per share
Listed options expire on - ✔✔-the 3rd Friday of the expiration month
A corporation has issued a single bond having successive maturity dates set from 2020 through 2030.
This is known as what type of bond? - ✔✔-Serial
An investor discovers that exactly 2 years and 9 months ago, the investor was given fraudulent
information on a security that prompted the investor to sell it. As a result, the investor lost money. How
long does the investor have to bring action? - ✔✔-3 months
While a branch office manager can initially approve an options account for trading, it must ultimately be
approved by - ✔✔-the firm's ROP
A shareholders' meeting for ABC Corporation will take place in 8 days. A customer whose stock is being
held in street name has not returned the proxy statements. Which of the following is TRUE? - ✔✔-The
member firm may vote the shares as it wishes on minor matters
An investor owning 400 shares of CDS stock receives notice that the stock will be split. When the split is
complete, the customer owns 600 shares of stock. The split must have been - ✔✔-a forward, uneven
split
Each SRO functions under the SEC's oversight and is accountable to the commission for enforcing federal
securities laws. While the MSRB regulates all matters related to the underwriting and trading of state
and municipal securities, it does not have enforcement powers of its rules. Which of the following does
the MSRB rely on for enforcement of these rules? - ✔✔-Financial industry regulatory authority
Under what circumstances could a broker-dealer firm share in a financial loss with a customer? - ✔✔-If
the loss was due to an error on the part of the firm
Under the Uniform Transfers to Minors Act (UTMA) a custodian has control over the account and can do
each of the following EXCEPT - ✔✔-sell short and write uncovered call options
An individual is solicited with a cold call made by a registered representative. He tells the representative
he is not interested in this investment or in making any future investments. Which of the following
actions is required by the Telephone Consumer Protection Act of 1991? - ✔✔-No calls may be made to
the prospect by anyone at the fir
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