STC SIE Exam Prep question with correct answers rated A+ 2023

STC SIE Exam Prep question with correct answers rated A+ 2023Who keeps track of the shareholders of a mutual fund? A. The custodian bank B. The transfer agent C. The investment adviser D. The underwriter - correct answer B. The transfer agent Which of the following choices would NOT be subject to the holding period restriction under Rule 144? A. Restricted stock acquired under an investment letter B. Restricted stock acquired under a stock option plan C. Control stock acquired under a private placement D. Control stock acquired through an open-market purchase - correct answer D. Control stock acquired through an open-market purchase There is a required holding period of six months for all restricted stock. Restricted stock is unregistered stock that was acquired as a result of a private placement. There is no required holding period for control stock. However, if an affiliate (control person) acquires stock as a result of a private placement, this stock would be considered restricted stock rather than control stock and would be subject to the holding period. Control stock acquired as a result of an open-market purchase is exempt from the holding period. The investments that tend to perform the WORST during periods of inflation are: A. Bonds B. Mutual Funds C. ETFs D. Gold and Silver - correct answer A. Bonds If a customer exceeds SIPC limits: A. The customer will receive cash rather than his securities B. The customer is a secured creditor C. The customer doesn't have a claim to the excess amount D. The customer is a general creditor - correct answer D. The customer is a general creditor When discussing the purchase of a variable annuity with a client, the RR is not required to disclose: A. Surrender fees B. Mortality fees C. Probate fees D. Administrative fees - correct answer C. Probate fees Probate fees and costs are associated with establishing the validity of a will, which is not a disclosure item for annuities. However, surrender, mortality, and administrative fees must be disclosed Jamie has inherited 500 shares of an investment company. She calls her broker to redeem the shares and is informed that the kind of investment company she owns makes no provision for future purchases or redemptions. What kind of investment company does she own? A. An open-end fund B. A closed-end fund C. A unit investment trust D. A face-amount certificate company - correct answer B. A closed-end fund