FINRA SIE EXAM | COMPLETE EXAM QUESTIONS AND
CORRECT ANSWERS | ALREADY GRADED
A+ | VERIFIED ANSWERS | NEWEST UPDATE 2026/2027.
Terms in this set (68)
If interest Rates fall the High Dividend Rate preferred issues trading at a premium
issuer will most likely call
which bonds first?
What are some actions by a Conversion of convertible preferred stocks or bond
corporation will affect an Repurchase of common shares
individuals common
Issuance of additional common shares
shareholder's equity
(Stock splits do not effect shareholders equity but it must be
voted on because it effects Par Value)
Benefits to a Convertible Convertible stock will have a slightly lower yield than non-
stock compared to a regular convertible however it will raise in value as the market price of
debenture common stock rises
,What traits do preferred Can be callable by issuer, both have periodic
stock and bonds have in payments. Both are senior securities to common
common? How are they
stock.
different?
Neither have voting rights
Preferred is paid dividends on a percentage of face value much
like the yield of a bond.
Preferred stock has no maturity date and can be held
perpetually while bonds have a set maturity date. Payments
to preferred stock are not mandatory unless a declared
dividend has been issued to common stock
Payments to bond holders are mandatory
When are common dividends Quarterly for both
declared and paid?
A share holder can buy a maximum of 18 shares with these
A customer owns 256 shares rights paying $432 for them.
of ABC common stock. ABC
declares a rights offering, The 17.06 shares may be rounded up to 18.
with the terms being that for
every 15 rights a shareholder
may purchase one additional
share.at $24 a share. Any
fractional rights may be
rounded up to buy an
additional share.
How many shares may the
customer buy with these
right?
, XXYZ ADR (American 10,000 Shares with $560.,000
Depository Receipt) Explanation
represents 10% of the value of
an XXYZ ordinary share. The
ordinary shares trade on the 400 BP x $1.4 = 560
London Stock Exchange,
where the current price is 400 $560, BP/share = 10,000 Shares of XXYZ
British Pounds (BP). The
current exchange rate for the
British Pound against the US
Dollar is $1.40. The ordinary
share pays an annualized
dividend of 12 BP. The XXYZ
ADR is listed on the NYSE. If a
customer places an order to
buy $560,000 of the ADR on
the customer will buy how
many shares of the ADR?
Rights are? Exerciserable, Negotiable (can be traded), Giftable
CORRECT ANSWERS | ALREADY GRADED
A+ | VERIFIED ANSWERS | NEWEST UPDATE 2026/2027.
Terms in this set (68)
If interest Rates fall the High Dividend Rate preferred issues trading at a premium
issuer will most likely call
which bonds first?
What are some actions by a Conversion of convertible preferred stocks or bond
corporation will affect an Repurchase of common shares
individuals common
Issuance of additional common shares
shareholder's equity
(Stock splits do not effect shareholders equity but it must be
voted on because it effects Par Value)
Benefits to a Convertible Convertible stock will have a slightly lower yield than non-
stock compared to a regular convertible however it will raise in value as the market price of
debenture common stock rises
,What traits do preferred Can be callable by issuer, both have periodic
stock and bonds have in payments. Both are senior securities to common
common? How are they
stock.
different?
Neither have voting rights
Preferred is paid dividends on a percentage of face value much
like the yield of a bond.
Preferred stock has no maturity date and can be held
perpetually while bonds have a set maturity date. Payments
to preferred stock are not mandatory unless a declared
dividend has been issued to common stock
Payments to bond holders are mandatory
When are common dividends Quarterly for both
declared and paid?
A share holder can buy a maximum of 18 shares with these
A customer owns 256 shares rights paying $432 for them.
of ABC common stock. ABC
declares a rights offering, The 17.06 shares may be rounded up to 18.
with the terms being that for
every 15 rights a shareholder
may purchase one additional
share.at $24 a share. Any
fractional rights may be
rounded up to buy an
additional share.
How many shares may the
customer buy with these
right?
, XXYZ ADR (American 10,000 Shares with $560.,000
Depository Receipt) Explanation
represents 10% of the value of
an XXYZ ordinary share. The
ordinary shares trade on the 400 BP x $1.4 = 560
London Stock Exchange,
where the current price is 400 $560, BP/share = 10,000 Shares of XXYZ
British Pounds (BP). The
current exchange rate for the
British Pound against the US
Dollar is $1.40. The ordinary
share pays an annualized
dividend of 12 BP. The XXYZ
ADR is listed on the NYSE. If a
customer places an order to
buy $560,000 of the ADR on
the customer will buy how
many shares of the ADR?
Rights are? Exerciserable, Negotiable (can be traded), Giftable
