SIE Practice test

All of the following are money market instruments except? - negotiable certificates of deposits - warrants expiring within 3 months - bankers acceptance - treasury bonds maturing within the next year - Answer- Warrants expiring within 3 months If a bond is purchased at a premium, the yield to maturity is - Answer- lower than the nominal yield In a prime brokerage account, the prime broker? - Answer- provides custody and clearing services, while other brokers provide execution services. An investor interested in quarterly income should invest in - Answer- Utility company stock**** Which of the following is NOT true regarding convertible bonds? - Answer- coupon rates are usually higher than nonconvertible bond rates of the same issuer A new registered representative working for a broker dealer is taking a part time job at a restaurant on evening and weekends to supplement current income. Regard this activity, - Answer- prior written notice must be made to the member firm, who could reject or restrict the affiliation For an owner to be paid a dividend, his name should be recorded on the stock record book of the issuers transfer agent by - Answer- record date An investor is looking to increase her purchase of put options. From this, you would surmise that the customers market outlook is - Answer- bearish Which of the following transactions may be made on margin - Answer- The purchase of NYSE-listed closed-end fund shares A client and her spouse own shares in the ACE fund as tenets in common. If each has a 50% ownership interest in the account, and the client dies, what happens to the shares in the account - Answer- Half the shares would belong to her spouse, and the remaining half would be distributed to her estate. All registered persons must complete a computer based training session within 120 days of the persons second registration anniversary and every three years thereafter to comply with - Answer- FINRA regulatory element regulation