SIE Exam Practice Questions and Answers (100% pass)

SIE Exam Practice Questions and Answers (100% pass) growth companies typically do not pay a _____________ - Answer️️ -dividend statutory voting - Answer️️ -allows stockholder only the amount of votes they have towards each BOD position. Ex: An investor has 100 shares, 3 BOD position open. He has 300 votes, 100 for each position cumulative voting - Answer️️ -shareholder can combine votes into one BOD position. Ex: An investor has 100 shares, 3 BOD position open. He has 300 votes, these 300 can be applied to any position. authorized shares - Answer️️ -how many shares can be offered to investors Treasury stock: - Answer️️ -shares repurchased from the market(buybacks) pre-emptive rights - Answer️️ -gives rights to buy newly issued shares before they are public Warrant Fixed or variable Time or intrinisic 5 years or 90 days - Answer️️ -Fixed ©PREP4EXAMS2024/2025 REAL EXAMS DUMP Wednesday, August 7, 2024 9: 33 PM 2 No Intrinsic at issuance Time value 5+ years right Fixed or variable Time or intrinisic 5 years or 90 days - Answer️️ -fixed intrinsic @ issuance 90 or less days trading and valusing stocks do/do not affect a warrants price - Answer️️ -do not forward stock split - Answer️️ -stock split if the price is believed to be too high reverse stock split - Answer️️ -stock split if price is believed to be too low primary market: - Answer️️ -issuers offer securities to investors in return for capital institutional investor - Answer️️ -a single entity investing on behalf of a group of clients(ex: hedge fund, mutual funds, banks). Primary distribution: - Answer️️ -a security is sold & the issuer receives the proceeds Secondary distribution - Answer️️ -a security is sold, but a party other then the issues receives the sale proceeds ©PREP4EXAMS2024/2025 REAL EXAMS DUMP Wednesday, August 7, 2024 9: 33 PM 3 second market: - Answer️️ -unlisted stocks that are traded OTC(Ex: Penny Stocks) broker dealers - Answer️️ -help customers buy & sell securities Intro Broker Dealers - Answer️️ -Smaller, client focused, do not own the securities clearing broker - Answer️️ -maintain custpdy, process orders, facilitate trades for custpmers clearing house: - Answer️️ -responsible in making sure that trades are properly finalized regular way settlement: - Answer️️ -t+1 days cash way settlement - Answer️️ -finalizes trade quickly as long as its done by 230 ET DERP - Answer️️ -d- Declatration date e- ex dividend date r- record date p- payable date leverage - Answer️️ -investing with borrowed funds, which amplifies gains + losses short sale: - Answer️️ -A sale of borrowed shares. If a customer cannot deliver a secuirtiy upon trade, they must borrow sjares from broker dealer if a dividend is applicable, does the lender pay the person selling s