FINRA SIE Exam 2 Questions with Newest
complete questions and correct verified
answers (detailed answers) already graded A+
If interest Rates fall the issuer will most likely call which bonds first? - {✔✔
RESOLUTION RESULT VERIFIED ✔✔}-High Dividend Rate preferred issues
trading at a premium
If a fund distributes a capital gain to shareholders which statements are true
I The capital gain is taxable if taken as a check
II The capital gain is not taxable if taken as a check
III The capital gain is taxable if it is auto reinvested
IV The capital gain is not taxable if it is auto reinvested - {✔✔ RESOLUTION
RESULT VERIFIED ✔✔}-I and III
The capital gain is taxable either way because it is distributed
Which of the following are types of Oil and Gas direct participation programs?
I Exploratory
,II Income
III Balanced
IV Combination - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-I II and IV
Balanced is not a DPP
What benefits do oil drilling programs provide? - {✔✔ RESOLUTION RESULT
VERIFIED ✔✔}-
Intangible drilling costs are 100% deductible in the year the drilling takes place
These programs give an immediate deduction
Which is most subject to reinvestment risk?
I Zero Coupon Bonds
II Low Coupon Bonds
III Medium Coupon Bonds
IV High Coupon Bonds - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-IV High
Coupon bonds are the most susceptible to reinvestment risk
, A customer places an to buy bonds. The order reads
"Buy 5M ABC 9s M'35 @ 90 GTC"
At which of the following will the price be executed
I 89
II 90
III 91
IV 92 - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-I and II
What are some actions by a corporation will affect an individuals common
shareholder's equity - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-Conversion
of convertible preferred stocks or bond
Repurchase of common shares
Issuance of additional common shares
(Stock splits do not effect shareholders equity but it must be voted on because it
effects Par Value)
Benefits to a Convertible stock compared to a regular debenture -
complete questions and correct verified
answers (detailed answers) already graded A+
If interest Rates fall the issuer will most likely call which bonds first? - {✔✔
RESOLUTION RESULT VERIFIED ✔✔}-High Dividend Rate preferred issues
trading at a premium
If a fund distributes a capital gain to shareholders which statements are true
I The capital gain is taxable if taken as a check
II The capital gain is not taxable if taken as a check
III The capital gain is taxable if it is auto reinvested
IV The capital gain is not taxable if it is auto reinvested - {✔✔ RESOLUTION
RESULT VERIFIED ✔✔}-I and III
The capital gain is taxable either way because it is distributed
Which of the following are types of Oil and Gas direct participation programs?
I Exploratory
,II Income
III Balanced
IV Combination - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-I II and IV
Balanced is not a DPP
What benefits do oil drilling programs provide? - {✔✔ RESOLUTION RESULT
VERIFIED ✔✔}-
Intangible drilling costs are 100% deductible in the year the drilling takes place
These programs give an immediate deduction
Which is most subject to reinvestment risk?
I Zero Coupon Bonds
II Low Coupon Bonds
III Medium Coupon Bonds
IV High Coupon Bonds - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-IV High
Coupon bonds are the most susceptible to reinvestment risk
, A customer places an to buy bonds. The order reads
"Buy 5M ABC 9s M'35 @ 90 GTC"
At which of the following will the price be executed
I 89
II 90
III 91
IV 92 - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-I and II
What are some actions by a corporation will affect an individuals common
shareholder's equity - {✔✔ RESOLUTION RESULT VERIFIED ✔✔}-Conversion
of convertible preferred stocks or bond
Repurchase of common shares
Issuance of additional common shares
(Stock splits do not effect shareholders equity but it must be voted on because it
effects Par Value)
Benefits to a Convertible stock compared to a regular debenture -
