FINRA SIE REVIEW TIPS QUESTIONS AND
ANSWERS SET A+
✔✔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 of the investor's shares will the company
purchase?
0
100
900
1,000 - ✔✔1,000
✔✔which of the following investments are generally traded according to their average
life rather than their stated maturity dates?
corporate bonds
government bonds
asset-backed securities
fixed-rate capital securities - ✔✔asset-backed securities
✔✔which of the following statement is true about treasury stock?
it has voting rights
it receives dividends
it is issued stock that has been subsequently reacquired by the corporation
it is authorized stock that has not been issued and is held in the corporation's treasury -
✔✔it is issued stock that has been subsequently reacquired by the corporation
✔✔in a period of low inflation and economic recession, the federal reserve is expected
to take which of the following actions?
decrease taxes
raise the federal funds rate
buy bonds in the open market
, require banks to increase reserves - ✔✔buy bonds in the open market
✔✔the call provision of a bond stipulates which of the following factors?
maturity date
call date and call price
original issue discount
coupon rate and call date - ✔✔call date and call price
✔✔call protection is most valuable to a bond owner when bond prices are generally:
rising
falling
stable
fluctuating - ✔✔rising
✔✔ The redemption value of an open-end investment company's shares is based on
the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - ✔✔NAV computed after the order is
received
✔✔The computation of dollar prices and accrued interest on municipal bonds is normal
on what calendar basis?
30/360
30/365
Actual/360
Actual/365 - ✔✔30/360
✔✔Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - ✔✔State securities regulators
✔✔At the time of issuance, which of the following securities normally has the longest
period to expiration?
Rights
Options
Warrants
Repurchase agreements - ✔✔Warrants
✔✔Regular way settlement on Treasury Bonds is:
same day
ANSWERS SET A+
✔✔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 of the investor's shares will the company
purchase?
0
100
900
1,000 - ✔✔1,000
✔✔which of the following investments are generally traded according to their average
life rather than their stated maturity dates?
corporate bonds
government bonds
asset-backed securities
fixed-rate capital securities - ✔✔asset-backed securities
✔✔which of the following statement is true about treasury stock?
it has voting rights
it receives dividends
it is issued stock that has been subsequently reacquired by the corporation
it is authorized stock that has not been issued and is held in the corporation's treasury -
✔✔it is issued stock that has been subsequently reacquired by the corporation
✔✔in a period of low inflation and economic recession, the federal reserve is expected
to take which of the following actions?
decrease taxes
raise the federal funds rate
buy bonds in the open market
, require banks to increase reserves - ✔✔buy bonds in the open market
✔✔the call provision of a bond stipulates which of the following factors?
maturity date
call date and call price
original issue discount
coupon rate and call date - ✔✔call date and call price
✔✔call protection is most valuable to a bond owner when bond prices are generally:
rising
falling
stable
fluctuating - ✔✔rising
✔✔ The redemption value of an open-end investment company's shares is based on
the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - ✔✔NAV computed after the order is
received
✔✔The computation of dollar prices and accrued interest on municipal bonds is normal
on what calendar basis?
30/360
30/365
Actual/360
Actual/365 - ✔✔30/360
✔✔Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - ✔✔State securities regulators
✔✔At the time of issuance, which of the following securities normally has the longest
period to expiration?
Rights
Options
Warrants
Repurchase agreements - ✔✔Warrants
✔✔Regular way settlement on Treasury Bonds is:
same day
