SIE PRACTICE EXAMS WITH CORRECT
SOLUTIONS GRADED A+ /PRACTICE TEST
1. By purchasing shares of stock in a company, investors can benefit from which
of the following?
A. An increase in the price of the shares
B. An increase in price of the company's debt securities
C. An increase in the yield of the company's outstanding debt securities
D. The receipt of profits to be distributed - -ANS☑️☑️--An Increase in price of
shares and The receipts of profit to be distributed
2. 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 - -ANS☑️☑️--a secondary offering
3. Which of the following is an example of an unsecured debt security?
A. Debenture
B. Preferred stock
C. Mortgage bond
D. Income bond - -ANS☑️☑️--Debenture and Income bond
4. Mutual funds that market directly to the public, using no underwriter and
charging no sales charge, are called - -ANS☑️☑️--No load funds
5. During the cooling-off period, underwriters of new securities may
A) accept orders to purchase shares
B) not accept orders to purchase shares
C) not accept indications of interest regarding potential purchases of shares
D) accept indications of interest regarding potential purchases of shares - -
ANS☑️☑️--not accept orders to purchase shares and accept indications of
interest regarding potential purchase of shares
6. The USA PATRIOT Act's required Customer Identification Program is designed
chiefly to prevent
, A) real estate fraud
B) funding of terrorist activities
C) use of insider information
D) money laundering - -ANS☑️☑️--funding of terrorist activity and money
laundering
7. A customer writes an MMM January 70 put at 6. The maximum potential gain
on this position is - -ANS☑️☑️--600
8. Your customer is long 1 October 75 put at 2. The customer's maximum gain
potential is - -ANS☑️☑️--7300
9. Large time deposits of more than $100,000 are considered to be found in
what part of the money supply? - -ANS☑️☑️--M3
10. The firm element of a broker-dealer's continuing education requirement
must be undergone by all registered persons who - -ANS☑️☑️--have direct
contact with the public
11. An August 15 call is written at 4. The call expires without being exercised
by the owner. The writer of the call - -ANS☑️☑️--keeps the $400 received
when the call was written
12. A mutual fund can offer all of the following to investors EXCEPT - -
ANS☑️☑️--physical custody of the fund's portfolio cash and securities
13. In an LP, which of the following is TRUE? - -ANS☑️☑️--The partnership
entity is not responsible for paying taxes on gains
SOLUTIONS GRADED A+ /PRACTICE TEST
1. By purchasing shares of stock in a company, investors can benefit from which
of the following?
A. An increase in the price of the shares
B. An increase in price of the company's debt securities
C. An increase in the yield of the company's outstanding debt securities
D. The receipt of profits to be distributed - -ANS☑️☑️--An Increase in price of
shares and The receipts of profit to be distributed
2. 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 - -ANS☑️☑️--a secondary offering
3. Which of the following is an example of an unsecured debt security?
A. Debenture
B. Preferred stock
C. Mortgage bond
D. Income bond - -ANS☑️☑️--Debenture and Income bond
4. Mutual funds that market directly to the public, using no underwriter and
charging no sales charge, are called - -ANS☑️☑️--No load funds
5. During the cooling-off period, underwriters of new securities may
A) accept orders to purchase shares
B) not accept orders to purchase shares
C) not accept indications of interest regarding potential purchases of shares
D) accept indications of interest regarding potential purchases of shares - -
ANS☑️☑️--not accept orders to purchase shares and accept indications of
interest regarding potential purchase of shares
6. The USA PATRIOT Act's required Customer Identification Program is designed
chiefly to prevent
, A) real estate fraud
B) funding of terrorist activities
C) use of insider information
D) money laundering - -ANS☑️☑️--funding of terrorist activity and money
laundering
7. A customer writes an MMM January 70 put at 6. The maximum potential gain
on this position is - -ANS☑️☑️--600
8. Your customer is long 1 October 75 put at 2. The customer's maximum gain
potential is - -ANS☑️☑️--7300
9. Large time deposits of more than $100,000 are considered to be found in
what part of the money supply? - -ANS☑️☑️--M3
10. The firm element of a broker-dealer's continuing education requirement
must be undergone by all registered persons who - -ANS☑️☑️--have direct
contact with the public
11. An August 15 call is written at 4. The call expires without being exercised
by the owner. The writer of the call - -ANS☑️☑️--keeps the $400 received
when the call was written
12. A mutual fund can offer all of the following to investors EXCEPT - -
ANS☑️☑️--physical custody of the fund's portfolio cash and securities
13. In an LP, which of the following is TRUE? - -ANS☑️☑️--The partnership
entity is not responsible for paying taxes on gains
