ECONB 251 COMPREHENSIVE SIE
PRACTICE EXAM 2026 QUESTIONS AND
VERIFIED ANSWERS
{BRAND NEW VERSION!!}
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?
1,000
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local
town in which the mayor is currently seeking re-election. A municipal finance
professional who resides in the town and works for ABC contributed $200 to the
mayor's re-election campaign 13 months ago. If the employee wants to support the
campaign further without impacting the municipal securities business of the firm,
he is permitted to make an additional contribution of up to what amount?
$50
Company ABC announces a 20% stock dividend for its common shareholders. If a
customer holds 1,000 shares at $50.00, what is the new price and number of shares
following the payment of the stock dividend?
1,200 shares at $41.67
,An investor owns 100 shares of XYZ common stock at the current market price of
$50 per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-
split stock position will be:
50 shares at $100 per share
When selling a fixed amount of a base currency to purchase a counter currency,
which of the following factors is primarily used to determine how much of the
counter currency the customer will receive?
The spot exchange rate
The primary purpose of a syndicate desk in the context of an equity offering is to:
build an order book and allocate the stock
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer while a
secondary distribution involves the sale of already issued and outstanding shares.
The computation of dollar prices and accrued interest on municipal bonds is
normally on what calendar basis?
, 30/360
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
Call protection is most valuable to a bond owner when bond prices are generally:
rising
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program?
PRACTICE EXAM 2026 QUESTIONS AND
VERIFIED ANSWERS
{BRAND NEW VERSION!!}
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?
1,000
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local
town in which the mayor is currently seeking re-election. A municipal finance
professional who resides in the town and works for ABC contributed $200 to the
mayor's re-election campaign 13 months ago. If the employee wants to support the
campaign further without impacting the municipal securities business of the firm,
he is permitted to make an additional contribution of up to what amount?
$50
Company ABC announces a 20% stock dividend for its common shareholders. If a
customer holds 1,000 shares at $50.00, what is the new price and number of shares
following the payment of the stock dividend?
1,200 shares at $41.67
,An investor owns 100 shares of XYZ common stock at the current market price of
$50 per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-
split stock position will be:
50 shares at $100 per share
When selling a fixed amount of a base currency to purchase a counter currency,
which of the following factors is primarily used to determine how much of the
counter currency the customer will receive?
The spot exchange rate
The primary purpose of a syndicate desk in the context of an equity offering is to:
build an order book and allocate the stock
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer while a
secondary distribution involves the sale of already issued and outstanding shares.
The computation of dollar prices and accrued interest on municipal bonds is
normally on what calendar basis?
, 30/360
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
Call protection is most valuable to a bond owner when bond prices are generally:
rising
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program?
