Exam Questions with Complete
Quiz_________________?
A $5 million company is sending a written notice out to its 40 investors in regards to its
FINRA mandates. Which form of communication is this best considered? -
Answer✅
Retail Communication
Quiz_________________?
A 27 year old investor contributes $15,000 into their 401k in 2021. The investor earns a
gain of 7% on their 401k in the same year. Assuming the investor does not withdraw any
funds, what amount in their 401k will they be taxed on? -
Answer✅
$0
Quiz_________________?
A bond owner benefits from a sinking fund provision when bond prices are generally: -
Answer✅
falling.
1
, Quiz_________________?
A broker-dealer is permitted to accept payment for a new issue from a new customer when
the: -
Answer✅
registration is effective
Quiz_________________?
A candidate who fails the SIE exam three times and has waited the six-month moratorium
period is preparing to take the exam for the fourth time. Which of the following is true? -
Answer✅
The candidate will have to wait another six-months if the exam is failed on the 4th try.
Quiz_________________?
A client of yours purchased 1000 shares of RAL common stock on Monday, February 11th
in a cash account at a CMV of $115 per share. The next day the stock moves to $128 on a
very favorable news report and the client places an order to sell the 1000 shares at the
market. On the Reg. T payment date the client has not paid for the purchase and asks that
liquidation proceeds be used to cover the cost of the purchase. -
Answer✅
This is free-riding, a violation of Reg. T
Quiz_________________?
A company announces a tender offer to its shareholders with the intent to buy a maximum
of 1 million shares of its outstanding stock at $10 per share and sets no minimum number of
shares to be purchased. An investor wants to participate in this offer and tenders his 1,000
share position. At the close of the offer period, only 900,000 shares have been tendered.
How many, if any, of the investor's shares will the company purchase? -
Answer✅
2
, 1,000
Quiz_________________?
A company has $100,000 in annual earnings with $75,000 in expenses. The company owes
preferred shareholders $7,000, and it has 10,000 shares issued. Which of the following
statements is true of the value of each share? -
Answer✅
Share values for non-preferred shareholders will be set at $1.80.
Quiz_________________?
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares
of ABC stock for $35 per share. The customer will break even when the stock is selling at
what price per share at expiration? -
Answer✅
$38
Quiz_________________?
A customer complaint is formally defined as a: -
Answer✅
any written communication from a customer or legal rep of a customer regarding an
allegation of a violation of one or more securities rules or federal regulations
Quiz_________________?
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement? -
Answer✅
3
, Quarterly
Quiz_________________?
A customer has bought a fully registered Exxon-Mobil debenture. The customer will receive
interest payments: -
Answer✅
From the paying agent twice a year
Quiz_________________?
A customer is an officer of a company that is involved in some significant changes. All of the
following items are examples of corporate affairs that could be considered insider
information if the customer shares them with his registered representative except: -
Answer✅
declared stock dividends
Quiz_________________?
A customer of a brokerage firm must receive a customer account statement with which of
the following frequencies?
I. Monthly if there has been any activity in the account
II. Monthly
III. Weekly if there has been any activity in the account
IV. A minimum of at least quarterly -
Answer✅
I and IV
4
Quiz_________________?
A $5 million company is sending a written notice out to its 40 investors in regards to its
FINRA mandates. Which form of communication is this best considered? -
Answer✅
Retail Communication
Quiz_________________?
A 27 year old investor contributes $15,000 into their 401k in 2021. The investor earns a
gain of 7% on their 401k in the same year. Assuming the investor does not withdraw any
funds, what amount in their 401k will they be taxed on? -
Answer✅
$0
Quiz_________________?
A bond owner benefits from a sinking fund provision when bond prices are generally: -
Answer✅
falling.
1
, Quiz_________________?
A broker-dealer is permitted to accept payment for a new issue from a new customer when
the: -
Answer✅
registration is effective
Quiz_________________?
A candidate who fails the SIE exam three times and has waited the six-month moratorium
period is preparing to take the exam for the fourth time. Which of the following is true? -
Answer✅
The candidate will have to wait another six-months if the exam is failed on the 4th try.
Quiz_________________?
A client of yours purchased 1000 shares of RAL common stock on Monday, February 11th
in a cash account at a CMV of $115 per share. The next day the stock moves to $128 on a
very favorable news report and the client places an order to sell the 1000 shares at the
market. On the Reg. T payment date the client has not paid for the purchase and asks that
liquidation proceeds be used to cover the cost of the purchase. -
Answer✅
This is free-riding, a violation of Reg. T
Quiz_________________?
A company announces a tender offer to its shareholders with the intent to buy a maximum
of 1 million shares of its outstanding stock at $10 per share and sets no minimum number of
shares to be purchased. An investor wants to participate in this offer and tenders his 1,000
share position. At the close of the offer period, only 900,000 shares have been tendered.
How many, if any, of the investor's shares will the company purchase? -
Answer✅
2
, 1,000
Quiz_________________?
A company has $100,000 in annual earnings with $75,000 in expenses. The company owes
preferred shareholders $7,000, and it has 10,000 shares issued. Which of the following
statements is true of the value of each share? -
Answer✅
Share values for non-preferred shareholders will be set at $1.80.
Quiz_________________?
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares
of ABC stock for $35 per share. The customer will break even when the stock is selling at
what price per share at expiration? -
Answer✅
$38
Quiz_________________?
A customer complaint is formally defined as a: -
Answer✅
any written communication from a customer or legal rep of a customer regarding an
allegation of a violation of one or more securities rules or federal regulations
Quiz_________________?
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement? -
Answer✅
3
, Quarterly
Quiz_________________?
A customer has bought a fully registered Exxon-Mobil debenture. The customer will receive
interest payments: -
Answer✅
From the paying agent twice a year
Quiz_________________?
A customer is an officer of a company that is involved in some significant changes. All of the
following items are examples of corporate affairs that could be considered insider
information if the customer shares them with his registered representative except: -
Answer✅
declared stock dividends
Quiz_________________?
A customer of a brokerage firm must receive a customer account statement with which of
the following frequencies?
I. Monthly if there has been any activity in the account
II. Monthly
III. Weekly if there has been any activity in the account
IV. A minimum of at least quarterly -
Answer✅
I and IV
4
