FINRA SIE Final Study Questions with Verified Answers
The primary purpose of a syndicate desk in the A savings account at a bank is guaranteed by
context of an equity offering is to: which of the following entities?
A. determine the list of selling shareholders A. FDIC
B. build an order book and allocate the stock B. SIPC
C. solicit interest from investors in the stock C. Federal Reserve
offering D. Department of Treasury - ANSWER -A
D. chaperone company management during the
road show - ANSWER -B
To offer its shareholders a privilege to obtain its
shares at a fixed price, which of the following
In a period of low inflation and economic products does a corporate issue?
recession, the Federal Reserve is expected to
take which of the following actions? A. puts
B. rights
A. decrease taxes C. futures
B. raise the federal funds rate D. preferred stock - ANSWER -B
C. buy bonds in the open market
D. require banks to increase reserves -
ANSWER -C A registered representative (RR) wants to
participate in a private securities transaction.
Which of the following actions must the RR take?
Which of the following communications with the
public is considered misleading? A. request a meeting with his supervisor to lay
out the structure of the deal
A. historical illustrations based on factual B. call his supervisor and inform her of the deal
performance and the RR's potential involvement
B. product comparisons that illustrate material C. send written notice to his supervisor outlining
differences the activity and compensation structure
C. a research report that includes a buy D. initiate the paperwork required by the policies
recommendation for a specific security of the firm once the activity has begun -
D. literature providing 10-year performance ANSWER -C
information to support predictions of future
performance - ANSWER -D
Under industry regulations, an initial purchase of
$3,000 of common stock in a margin account
Under the Securities Act of 1933, registration is requires a cash deposit of:
required for which of the following securities?
A. $750
A. eurodollar bonds B. $1,500
B. municipal securities C. $2,000
C. American depositary receipts (adrs) D. $3,000 - ANSWER -C
D. securities issued by the federal government -
ANSWER -C
Which of the following statements is true about
treasury stock?
, FINRA SIE Final Study Questions with Verified Answers
shareholders with the intent to buy a maximum of
A. it has voting rights 1 million shares of its outstanding stock at $10
B. it receives dividends per share and sets no minimum number of
C. it is issued stock that has been subsequently shares to be purchased. An investor wants to
reacquired by the corporation participate in this offer and tenders his 1,000
D. it is authorized stock that has not been issued share position. At the close of the offer period,
and is held in the corporation's treasury - only 900,000 shares have been tendered. How
ANSWER -C many, if any, of the investor's shares will the
company purchase?
Which of the following outcomes are possible for A. 0
the writer of a covered call option? B. 100
C. 900
A. profit limited and loss limited D. 1000 - ANSWER -D
B. profit limited and loss unlimited
C. profit unlimited and loss limited
D. profit unlimited and loss unlimited - When is interest on Treasury notes paid?
ANSWER -A
A. quarterly
B. semiannually
The computation of dollar prices and accrued C. annually
interest on municipal bonds is normally on what D. at maturity - ANSWER -B
calendar basis?
A. 30/360 In the over-the-counter market, the term "spread"
B. 30/365 refers to the difference between the:
C. actual/360
D. actual/365 - ANSWER -A A. bid and asked prices
B. offered and asked prices
C. indicated and firm prices
A registered representative is reviewing the D. opening and closing prices - ANSWER -
following portfolio: A
-30% ABC energy company
-30% XYZ health care company
-30% exchange-traded fund Which of the following investments are generally
-10% money market funds traded according to their average life rather than
Which of the following risks is inherent in this their stated maturity dates?
portfolio?
A. corporate bonds
A. credit B. government bonds
B. liquidity C. asset-backed securities
C. political D. fixed-rate capital securities - ANSWER -
D. nonsystematic - ANSWER -D C
A company announces a tender offer to its A broker-dealer permitted to accept payment for
The primary purpose of a syndicate desk in the A savings account at a bank is guaranteed by
context of an equity offering is to: which of the following entities?
A. determine the list of selling shareholders A. FDIC
B. build an order book and allocate the stock B. SIPC
C. solicit interest from investors in the stock C. Federal Reserve
offering D. Department of Treasury - ANSWER -A
D. chaperone company management during the
road show - ANSWER -B
To offer its shareholders a privilege to obtain its
shares at a fixed price, which of the following
In a period of low inflation and economic products does a corporate issue?
recession, the Federal Reserve is expected to
take which of the following actions? A. puts
B. rights
A. decrease taxes C. futures
B. raise the federal funds rate D. preferred stock - ANSWER -B
C. buy bonds in the open market
D. require banks to increase reserves -
ANSWER -C A registered representative (RR) wants to
participate in a private securities transaction.
Which of the following actions must the RR take?
Which of the following communications with the
public is considered misleading? A. request a meeting with his supervisor to lay
out the structure of the deal
A. historical illustrations based on factual B. call his supervisor and inform her of the deal
performance and the RR's potential involvement
B. product comparisons that illustrate material C. send written notice to his supervisor outlining
differences the activity and compensation structure
C. a research report that includes a buy D. initiate the paperwork required by the policies
recommendation for a specific security of the firm once the activity has begun -
D. literature providing 10-year performance ANSWER -C
information to support predictions of future
performance - ANSWER -D
Under industry regulations, an initial purchase of
$3,000 of common stock in a margin account
Under the Securities Act of 1933, registration is requires a cash deposit of:
required for which of the following securities?
A. $750
A. eurodollar bonds B. $1,500
B. municipal securities C. $2,000
C. American depositary receipts (adrs) D. $3,000 - ANSWER -C
D. securities issued by the federal government -
ANSWER -C
Which of the following statements is true about
treasury stock?
, FINRA SIE Final Study Questions with Verified Answers
shareholders with the intent to buy a maximum of
A. it has voting rights 1 million shares of its outstanding stock at $10
B. it receives dividends per share and sets no minimum number of
C. it is issued stock that has been subsequently shares to be purchased. An investor wants to
reacquired by the corporation participate in this offer and tenders his 1,000
D. it is authorized stock that has not been issued share position. At the close of the offer period,
and is held in the corporation's treasury - only 900,000 shares have been tendered. How
ANSWER -C many, if any, of the investor's shares will the
company purchase?
Which of the following outcomes are possible for A. 0
the writer of a covered call option? B. 100
C. 900
A. profit limited and loss limited D. 1000 - ANSWER -D
B. profit limited and loss unlimited
C. profit unlimited and loss limited
D. profit unlimited and loss unlimited - When is interest on Treasury notes paid?
ANSWER -A
A. quarterly
B. semiannually
The computation of dollar prices and accrued C. annually
interest on municipal bonds is normally on what D. at maturity - ANSWER -B
calendar basis?
A. 30/360 In the over-the-counter market, the term "spread"
B. 30/365 refers to the difference between the:
C. actual/360
D. actual/365 - ANSWER -A A. bid and asked prices
B. offered and asked prices
C. indicated and firm prices
A registered representative is reviewing the D. opening and closing prices - ANSWER -
following portfolio: A
-30% ABC energy company
-30% XYZ health care company
-30% exchange-traded fund Which of the following investments are generally
-10% money market funds traded according to their average life rather than
Which of the following risks is inherent in this their stated maturity dates?
portfolio?
A. corporate bonds
A. credit B. government bonds
B. liquidity C. asset-backed securities
C. political D. fixed-rate capital securities - ANSWER -
D. nonsystematic - ANSWER -D C
A company announces a tender offer to its A broker-dealer permitted to accept payment for
