FINRA SIE Practice Test Questions and Answers Rated A
Upon Expiration, all in-the-money S&P 100 Index When is interest on Treasury notes paid? -
call options are settled by the delivery of which of ANSWER -Semiannually
the following? - ANSWER -Cash
The owner of which of the following products is
Which of the following statements is true about MOST exposed to inflationary risk? -
treasury stock? - ANSWER -It is issued ANSWER -Treasury bonds (because it's
stock that has been subsequently reacquired by long-term)
the corporation
A registered representative (RR) who wants to
In the event of a stock split, which of the place a mutual fund advertisement must obtain
following parties is required to maintain a record written approval from which of the following
of the shareholders eligible to receive the parties? - ANSWER -A registered principal
additional shares? - ANSWER -Transfer of the RR's firm
Agent
A company announces a tender offer to its
Which of the following actions is required of a shareholders with the intent to buy a maximum of
broker-dealer's anti-money laundering (AML) 1 million shares of its outstanding stock at $10
program? - ANSWER -Designating an AML per share and sets no minimum number of
compliance officer 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,
A registered representative (RR) wants to only 900,000 shares have been tendered. How
participate in a private securities transaction. many, if any, of the investor's shares will the
Which of the following actions must the RR take? company purchase? - ANSWER -1,000
- ANSWER -Send written notice to his (1,000 x 100 = 100,000 shares; 1 million - 900k =
supervisor outlining the activity and 100k)
compensation structure
Broker-dealer ABC seeks to underwrite a
A customer BUYS a 1 ABC Jan 35 PUT for a municipal securities offering by a local town in
premium of $3 and simultaneously buys 100 which the mayor is currently seeking re-election.
shares of ABC stock for $35 per share. The A municipal finance professional who resides in
customer will break even when the stock is the town and works for ABC contributed $200 to
selling at what price per share at expiration? - the mayor's re-election campaign 13 months ago.
ANSWER -$38 If the employee wants to support the campaign
further without impacting the municipal securities
business of the firm, he is permitted to make an
The call provision of a bond stipulates which of additional contribution of up to what amount? -
the following factors? - ANSWER -Call date ANSWER -$50 ($250 is the limit PER
and call price election)
Which of the following stakeholders has first
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, FINRA SIE Practice Test Questions and Answers Rated A
claim priority in a Chapter 11 proceeding? - ANSWER -They are exempt from
ANSWER -Secured debt holders registration under the Securities Act of 1933
[Order of liquidation at bankruptcy:
1. Unpaid wages Which of the following products is adversely
2. Taxes (IRS) impacted if the issuer's credit rating is
3. Secured claims (mortgages) downgraded? - ANSWER -Exchange-
4. Secured liabilities (bonds) traded notes (ETNs)
5. Unsecured liabilities (debentures) and general
creditors
6. Subordinated debt Company ABC announces a 20% stock dividend
7. Preferred Stockholders for its common shareholders. If a customer holds
8. Common stockholders] 1,000 shares at $50.00, what is the new price
and number of shares following the payment of
the stock dividend? - ANSWER -1,200
An investors owns 100 shares of XYZ common shares at $41.67 (20% increase in number of
stock at the current market price of $50 per stock BUT market cap remains the same)
share. If XYZ conducts a 1-for-2 REVERSE stock
split, the investor's post-split stock position will
be: - ANSWER -50 shares at $100 per A married couple who earned income that
share exceeded $300,000 in each of the prior two years
ad reasonably expects the same for the current
year is: - ANSWER -an accredited investor
The primary purpose of a syndicate desk in the
context of an equity offering is to: -
ANSWER -build an order book and allocate Which of the following statements is true
the stock regarding the concept of an annuity contract? -
ANSWER -The kind of annuity selected
partly determines the payment amounts to the
Which of the following investments are generally annuitant.
traded according to their average life rather than
their stated maturity dates? - ANSWER -
Asset-backed securities Roth 401(k) and Roth IRA individual retirement
account (IRA) plans are share which of the
following features? - ANSWER -Qualified
UTMA (Minor) accounts are opened under the distributions are excluded from federal income
tax ID of the: - ANSWER -minor tax
Stability in the value of debt portfolio is greatest Under normal circumstances, a customer's letter
when: - ANSWER -maturities of the debt of intent on a mutual fund purchase is valid for
securities are short what maximum period of time? - ANSWER -
13 months
Which of the following statements is true about
all U.S. government agency issues? -
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Upon Expiration, all in-the-money S&P 100 Index When is interest on Treasury notes paid? -
call options are settled by the delivery of which of ANSWER -Semiannually
the following? - ANSWER -Cash
The owner of which of the following products is
Which of the following statements is true about MOST exposed to inflationary risk? -
treasury stock? - ANSWER -It is issued ANSWER -Treasury bonds (because it's
stock that has been subsequently reacquired by long-term)
the corporation
A registered representative (RR) who wants to
In the event of a stock split, which of the place a mutual fund advertisement must obtain
following parties is required to maintain a record written approval from which of the following
of the shareholders eligible to receive the parties? - ANSWER -A registered principal
additional shares? - ANSWER -Transfer of the RR's firm
Agent
A company announces a tender offer to its
Which of the following actions is required of a shareholders with the intent to buy a maximum of
broker-dealer's anti-money laundering (AML) 1 million shares of its outstanding stock at $10
program? - ANSWER -Designating an AML per share and sets no minimum number of
compliance officer 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,
A registered representative (RR) wants to only 900,000 shares have been tendered. How
participate in a private securities transaction. many, if any, of the investor's shares will the
Which of the following actions must the RR take? company purchase? - ANSWER -1,000
- ANSWER -Send written notice to his (1,000 x 100 = 100,000 shares; 1 million - 900k =
supervisor outlining the activity and 100k)
compensation structure
Broker-dealer ABC seeks to underwrite a
A customer BUYS a 1 ABC Jan 35 PUT for a municipal securities offering by a local town in
premium of $3 and simultaneously buys 100 which the mayor is currently seeking re-election.
shares of ABC stock for $35 per share. The A municipal finance professional who resides in
customer will break even when the stock is the town and works for ABC contributed $200 to
selling at what price per share at expiration? - the mayor's re-election campaign 13 months ago.
ANSWER -$38 If the employee wants to support the campaign
further without impacting the municipal securities
business of the firm, he is permitted to make an
The call provision of a bond stipulates which of additional contribution of up to what amount? -
the following factors? - ANSWER -Call date ANSWER -$50 ($250 is the limit PER
and call price election)
Which of the following stakeholders has first
1/6
, FINRA SIE Practice Test Questions and Answers Rated A
claim priority in a Chapter 11 proceeding? - ANSWER -They are exempt from
ANSWER -Secured debt holders registration under the Securities Act of 1933
[Order of liquidation at bankruptcy:
1. Unpaid wages Which of the following products is adversely
2. Taxes (IRS) impacted if the issuer's credit rating is
3. Secured claims (mortgages) downgraded? - ANSWER -Exchange-
4. Secured liabilities (bonds) traded notes (ETNs)
5. Unsecured liabilities (debentures) and general
creditors
6. Subordinated debt Company ABC announces a 20% stock dividend
7. Preferred Stockholders for its common shareholders. If a customer holds
8. Common stockholders] 1,000 shares at $50.00, what is the new price
and number of shares following the payment of
the stock dividend? - ANSWER -1,200
An investors owns 100 shares of XYZ common shares at $41.67 (20% increase in number of
stock at the current market price of $50 per stock BUT market cap remains the same)
share. If XYZ conducts a 1-for-2 REVERSE stock
split, the investor's post-split stock position will
be: - ANSWER -50 shares at $100 per A married couple who earned income that
share exceeded $300,000 in each of the prior two years
ad reasonably expects the same for the current
year is: - ANSWER -an accredited investor
The primary purpose of a syndicate desk in the
context of an equity offering is to: -
ANSWER -build an order book and allocate Which of the following statements is true
the stock regarding the concept of an annuity contract? -
ANSWER -The kind of annuity selected
partly determines the payment amounts to the
Which of the following investments are generally annuitant.
traded according to their average life rather than
their stated maturity dates? - ANSWER -
Asset-backed securities Roth 401(k) and Roth IRA individual retirement
account (IRA) plans are share which of the
following features? - ANSWER -Qualified
UTMA (Minor) accounts are opened under the distributions are excluded from federal income
tax ID of the: - ANSWER -minor tax
Stability in the value of debt portfolio is greatest Under normal circumstances, a customer's letter
when: - ANSWER -maturities of the debt of intent on a mutual fund purchase is valid for
securities are short what maximum period of time? - ANSWER -
13 months
Which of the following statements is true about
all U.S. government agency issues? -
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