SIE Practice Exam| 55 Questions| With Complete Solutions

An individual who has been previously registered with another firm is applying for registration with a new member firm. The new member firm has requested the Form U5 from the applicant. Within how many days must the applicant provide the Form U5 from his previous registration? correct answer: 2 business days If the member requests the Form U5 from the applicant, it must be provided within 2 business days A mutual fund that charges the maximum sales charge of 8½% allowable by the Investment Company Act of 1940 does NOT have to offer correct answer: Exchange rights. . Exchange rights are a convenience privilege and are not required by the Act. All of the other rights must be made available to investors in order to collect the maximum sales charges. Which type of preferred stock would potentially pay dividends in addition to the stated dividend if a company has excess earnings? correct answer: Participating preferred Participating preferred allows investors to participate in excess earnings after the company has met its normal interest and dividend obligations. In other words, investors may receive dividends in addition to the stated dividend.