SIE Exam - Part 1 question with complete solution rated A+ 2023

SIE Exam - Part 1 question with complete solution rated A+ 2023Issuer - correct answer A legal entity that sells securities in order to finance its operations Debt Securities - correct answer Publicly traded loans in which the amount of indebtedness (principle) that the issuer owes the investor (creditor) is lent for a specific period (until maturity) (aka "bond") Equity Securities - correct answer An investor purchases an ownership share of a company and the profits are directly tied to company performance (aka "stock") Broker-Dealer - correct answer Term for the two capacities in which any firm may operate Broker - correct answer Any person that engages in the business of effecting transactions for the accounts of others - matches buyers and sellers to earn a commission (agency transactions) Dealer - correct answer Any person that engages in the business of buying and selling securities for his/her own account (principle transactions) Investment Banking (IB) - correct answer Works directly with the issuers to arrange and structure their security offerings (underwriters of securities) Registered Representatives (RR)/Investment Advisor Representatives (IAR) - correct answer Individuals who typically market individual stocks, bonds, and packaged products to both retail investors and institutions Market Maker - correct answer References the firm when a broker-dealer chooses to display quotes into a trading system to indicate its readiness to buy and/or sell securities at specific prices