SIE Mastery Exam Questions With Accurate Answers.

SIE Mastery Exam Questions With Accurate Answers. The orders that are executed in a rising market are - answer"OSLOBS" - Open Sell Limits and Open Buy Stops The order that are executed if the market drops are - answer"OBLOSS" - Open Buy Limits and Open Sell Stops ABC 8% $100 par preferred is trading at $120 in the market. The current yield is: - answer6.7% formula Current yield = annual income/ Market price current yield= ($8/$120)x 100 Which debt instrument is used to finance imports and exports - answerBanker's Acceptances are a money market instrument used to finance imports and exports with "Third World" countries when a corporation splits its stock, which statement is TRUE? - answeran existing shareholder's proportionate ownership in the corporation remains the same and individual investors are more likely to buy the stock which type of oil and gas program is the most conservation? - answerIncome(Production) an income or production program buys an existing oil well with proven reserves, with the intention of stripping the remaining oil from the ground, partially sheltered by the depletion deduction. This program has the lowest level if risk and potential return Exploratory oil and gas program - answerThey have the highest level of risk; and the highest potential return program drill in virgin, uncharted areas developmental program - answerThe level of risk and potential return is lower than that for an exploratory program program drill near existing fields, since there is oil nearby, the chances of striking oil are better, and so the mineral rights cost is much higher than an exploratory program. Combination program - answerthis program invests in all 3 types and, thus, would be riskier than a simple production (income) program which terms apply to mutual fund shares? - answerredeemable with continuous issuance mutual fund shared DO NOT trade - they are not negotiable. The shares are issued by the fund when a purchase is made and are redeemed by the fund when the shares are sold. The fund continuously issues and redeems its shares Comparing bonds and preferred stock - answerBoth bonds and preferred stock are "Senior" securities over common Payments to bondholders are legal obligation of the issuer. They are not a discretionary decision on the part of the BOD, as is the decision to pay a dividend to preferred and common shareholder Which statement is TRUE regarding T-bills - answerNo physical certificates are issued The U.S Government issues T-Bills in book entry form only NO physical certificates are issued T-bills are short term instruments that are issued at a discount and mature at par