SIE Practice Exam Questions and Answers 100% Pass

SIE Practice Exam Questions and Answers 100% Pass What advantages can investors gain by purchasing company shares? An increase in share value Receiving dividends from company profits What is the term for an offering where existing shareholders sell their shares to the public for the first time? A secondary offering Which of the following represents a debt security without collateral backing? Debenture Income bond What do we call mutual funds that are sold directly to investors without using underwriters or imposing sales fees? No-load funds 2 During the cooling-off period, what can underwriters do regarding new securities? They cannot take purchase orders but can gather interest indications for potential future buys What is the primary aim of the Customer Identification Program under the USA PATRIOT Act? To prevent financing of terrorism To fight money laundering Which individuals are required to complete the firm element of continuing education in a brokerage firm? Those who interact directly with clients If an August 15 call option was sold for $400 and expires unexercised, what does the seller keep? The $400 received from writing the option Which of the following services is NOT provided by mutual funds to investors? Physical custody of the fund’s cash and securities In a limited partnership (LP), which statement is accurate? 3 The partnership itself does not handle taxes on earnings For MAS Corporation, which has had a very profitable year, and where MAS 4% preferred shares with a participation feature up to 6% receive the full participating dividend, what additional dividend will shareholders get? An extra 2% If a registered representative helps a customer buy securities with part of the cost borrowed from the broker-dealer, what interest rate applies? The broker call loan rate