SIE PRACTICE EXAMS WITH CORRECT
ANSWERS GRADED A+ /PRACTICE
TEST
1. A customer writes an MMM January 70 put at 6. The maximum
potential gain on this position is - ANSWER-600
2. Your customer is long 1 October 75 put at 2. The customer's
maximum gain potential is - ANSWER-7300
3. Large time deposits of more than $100,000 are considered to
be found in what part of the money supply? - ANSWER-M3
4. By purchasing shares of stock in a company, investors can
benefit from which of the following?
5. An increase in the price of the shares
6. An increase in price of the company's debt securities
7. An increase in the yield of the company's outstanding debt
securities
8. The receipt of profits to be distributed - ANSWER-An Increase
in price of shares and The receipts of profit to be distributed
9. An offering in which one or more stockholders in the
corporation are selling all or a portion of their own shares to
the investing public for the first time is known as - ANSWER-a
secondary offering
10. Which of the following is an example of an unsecured
debt security?
11. Debenture
12. Preferred stock
13. Mortgage bond
, 14. Income bond - ANSWER-Debenture and Income bond
15. Mutual funds that market directly to the public, using no
underwriter and charging no sales charge, are called -
ANSWER-No load funds
16. During the cooling-off period, underwriters of new
securities may
17. accept orders to purchase shares
18. not accept orders to purchase shares
19. not accept indications of interest regarding potential
purchases of shares
20. accept indications of interest regarding potential
purchases of shares - ANSWER-not accept orders to purchase
shares and accept indications of interest regarding potential
purchase of shares
21. The USA PATRIOT Act's required Customer Identification
Program is designed chiefly to prevent
22. real estate fraud
23. funding of terrorist activities
24. use of insider information
25. money laundering - ANSWER-funding of terrorist activity
and money laundering
26. The firm element of a broker-dealer's continuing
education requirement must be undergone by all registered
persons who - ANSWER-have direct contact with the public
27. An August 15 call is written at 4. The call expires without
being exercised by the owner. The writer of the call - ANSWER-
keeps the $400 received when the call was written
ANSWERS GRADED A+ /PRACTICE
TEST
1. A customer writes an MMM January 70 put at 6. The maximum
potential gain on this position is - ANSWER-600
2. Your customer is long 1 October 75 put at 2. The customer's
maximum gain potential is - ANSWER-7300
3. Large time deposits of more than $100,000 are considered to
be found in what part of the money supply? - ANSWER-M3
4. By purchasing shares of stock in a company, investors can
benefit from which of the following?
5. An increase in the price of the shares
6. An increase in price of the company's debt securities
7. An increase in the yield of the company's outstanding debt
securities
8. The receipt of profits to be distributed - ANSWER-An Increase
in price of shares and The receipts of profit to be distributed
9. An offering in which one or more stockholders in the
corporation are selling all or a portion of their own shares to
the investing public for the first time is known as - ANSWER-a
secondary offering
10. Which of the following is an example of an unsecured
debt security?
11. Debenture
12. Preferred stock
13. Mortgage bond
, 14. Income bond - ANSWER-Debenture and Income bond
15. Mutual funds that market directly to the public, using no
underwriter and charging no sales charge, are called -
ANSWER-No load funds
16. During the cooling-off period, underwriters of new
securities may
17. accept orders to purchase shares
18. not accept orders to purchase shares
19. not accept indications of interest regarding potential
purchases of shares
20. accept indications of interest regarding potential
purchases of shares - ANSWER-not accept orders to purchase
shares and accept indications of interest regarding potential
purchase of shares
21. The USA PATRIOT Act's required Customer Identification
Program is designed chiefly to prevent
22. real estate fraud
23. funding of terrorist activities
24. use of insider information
25. money laundering - ANSWER-funding of terrorist activity
and money laundering
26. The firm element of a broker-dealer's continuing
education requirement must be undergone by all registered
persons who - ANSWER-have direct contact with the public
27. An August 15 call is written at 4. The call expires without
being exercised by the owner. The writer of the call - ANSWER-
keeps the $400 received when the call was written
