SIE Exam-Questions with Correct Answers/ Verified/ 100% Pass
MSRB - ✔️✔️Municipal Securities Rulemaking Board
GO Bonds - ✔️✔️Generally obligation bonds: municipal bonds that are back by the full faith and
credit of the taxpayers and must be approved by taxpayers.
capital appreciation bond (CAB) - ✔️✔️a long-term, high-interest-paying bond that pays off both
principal and interest in one lump sum when the bond reaches maturity
Revenue Bonds - ✔️✔️Bonds to be repaid with revenues from the projects they finance, such as
higher education bonds to be repaid with revenue from student tution
parity of stock - ✔️✔️bond market value/conversion ratio
yield to maturity - ✔️✔️the rate of return a bondholder will receive if the bond is held to maturity
Current Yield Formula - ✔️✔️annual coupon/current price
Certificate of Participation (COP) - ✔️✔️A municipal security paying a share of lease revenues to the
investor as opposed to a bond backed by such revenues from a particular project.
zero coupon bond - ✔️✔️a bond that makes no coupon payments and is thus initially priced at a
deep discount
unqualified legal opinion - ✔️✔️The statement of a bond counsel affirming the compliance of a
new municipal bond issue with municipal statutes and tax regulations and expressing no
reservations about its validity.
coupon rate - ✔️✔️the interest rate that a bond issuer will pay to a bondholder ( yearly amount
bondholders will receive based on par value of the security)
Bond Seesaw - ✔️✔️When bonds are at par, current yield CY = coupon
, When bonds are at a premium, the CY < coupon
When bonds are at a discount, the CY > coupon
Certificate of Deposit (CD) - ✔️✔️a certificate issued by a bank to a person depositing money for a
specified length of time.
SLoBS
BLiSS - ✔️✔️Sell Limit, Buy Stop
Buy Limit, Sell Stop
Three types of investment companies - ✔️✔️(1) management companies, (2) unit investment
trusts, and (3) face amount certificate companies.
Fund Sponsor - ✔️✔️-Underwriter (creator of fund)
-must register funds with SEC before security can be sold
Investment Advisor - ✔️✔️A financial professional who manages investments and has been trained
and licensed to do so/ contract approved by shareholders
Selling Group - ✔️✔️other brokerage firms that help the underwriting syndicate(fund sponsor) sell
issue to the public
Custodian Bank - ✔️✔️The bank designated by a mutual fund to hold the cash and securities of the
fund and maintain fund level account records (responsible for safe guarding assets)
Diversified Fund 75-5-10 Rule - ✔️✔️- 75% or more of its assets invested in securities
- max of 5% of its assets invested in any one issuer
- max holding of 10% of the voting securities in any one issuer
Growth Funds - ✔️✔️Mutual funds that invest in the common stock of established companies as
well as in new companies and industries
MSRB - ✔️✔️Municipal Securities Rulemaking Board
GO Bonds - ✔️✔️Generally obligation bonds: municipal bonds that are back by the full faith and
credit of the taxpayers and must be approved by taxpayers.
capital appreciation bond (CAB) - ✔️✔️a long-term, high-interest-paying bond that pays off both
principal and interest in one lump sum when the bond reaches maturity
Revenue Bonds - ✔️✔️Bonds to be repaid with revenues from the projects they finance, such as
higher education bonds to be repaid with revenue from student tution
parity of stock - ✔️✔️bond market value/conversion ratio
yield to maturity - ✔️✔️the rate of return a bondholder will receive if the bond is held to maturity
Current Yield Formula - ✔️✔️annual coupon/current price
Certificate of Participation (COP) - ✔️✔️A municipal security paying a share of lease revenues to the
investor as opposed to a bond backed by such revenues from a particular project.
zero coupon bond - ✔️✔️a bond that makes no coupon payments and is thus initially priced at a
deep discount
unqualified legal opinion - ✔️✔️The statement of a bond counsel affirming the compliance of a
new municipal bond issue with municipal statutes and tax regulations and expressing no
reservations about its validity.
coupon rate - ✔️✔️the interest rate that a bond issuer will pay to a bondholder ( yearly amount
bondholders will receive based on par value of the security)
Bond Seesaw - ✔️✔️When bonds are at par, current yield CY = coupon
, When bonds are at a premium, the CY < coupon
When bonds are at a discount, the CY > coupon
Certificate of Deposit (CD) - ✔️✔️a certificate issued by a bank to a person depositing money for a
specified length of time.
SLoBS
BLiSS - ✔️✔️Sell Limit, Buy Stop
Buy Limit, Sell Stop
Three types of investment companies - ✔️✔️(1) management companies, (2) unit investment
trusts, and (3) face amount certificate companies.
Fund Sponsor - ✔️✔️-Underwriter (creator of fund)
-must register funds with SEC before security can be sold
Investment Advisor - ✔️✔️A financial professional who manages investments and has been trained
and licensed to do so/ contract approved by shareholders
Selling Group - ✔️✔️other brokerage firms that help the underwriting syndicate(fund sponsor) sell
issue to the public
Custodian Bank - ✔️✔️The bank designated by a mutual fund to hold the cash and securities of the
fund and maintain fund level account records (responsible for safe guarding assets)
Diversified Fund 75-5-10 Rule - ✔️✔️- 75% or more of its assets invested in securities
- max of 5% of its assets invested in any one issuer
- max holding of 10% of the voting securities in any one issuer
Growth Funds - ✔️✔️Mutual funds that invest in the common stock of established companies as
well as in new companies and industries
