SIE Exam - Finra Study Guide with Complete Solutions

SIE Exam - Finra Study Guide with Complete Solutions In which of the follow situations is an employee of a public company permitted to trade upon information without violating insider trading laws - Answer️️ -An independent securities analyst explains for the company next quarter could be markedly poorer than expected Under rule 144A, an issuer of a restricted stock is permitted to sell to which of the following investors - Answer️️ -Qualified Institutional Buyers (QIBs) A registered representative (RR) wants to participate in a private securities transaction. Which of the following actions must the RR take - Answer️️ -Send written notice to his supervisor outlining the activity and compensation structure Direct Participation Programs (DPP) provide: - Answer️️ -exposure to non-correlated assets with steady returns A decline is the gross domestic product (GDP) must last for at least how many quarters to be considered a recession - Answer️️ -2 Which of the following comparisons best describes the essential difference between a primary distribution and a secondary distribution - Answer️️ -A primary distribution involves a sale of newly issued shares by the issuer while a secondary distribution involved the sale of already issued and outstanding shares TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/10 A customer has a cash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her an account statement - Answer️️ -Quarterly Which of the following communications with the public is considered misleading - Answer️️ -Literature providing 10-year performance information to support predictions of future performance Which of the following form U4 reportable events results in a statutory disqualification - Answer️️ -A felony conviction for a driving under the influence (DUI) charge Which of the following investment risks is the greatest risk in a variable life insurance policy - Answer️️ -Market risk Which of the following stakeholders has first claim priority in a Chapter 11 proceeding - Answer️️ -Secured debt holder Under FINRA rules, noncash compensation connected with the sale of variable contracts includes all of the following items except: - Answer️️ -commisions The redemption value of an open-end investment company shares is based on the - Answer️️ -NAV computed after the order is received The owner of which the following products is the most exposed to inflationary risk - Answer️️ -Treasury bonds TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/10 Which of the following statements is true regarding a customer account held as tenants in common - Answer️️ -The ownership for the decedent's assets is governed by their will or state law A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling at what price per share at expiration - Answer️️ -$38 When is interest on treasury notes paid - Answer️️ -Semiannually Blue-Sky laws are regulated by which of the following entities - Answer️️ -State securities regulators A broker-dealer is permitted to accept payment for a new issue from a new customer when the - Answer️️ -Registration is effective Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer opens and closes which of the following positions - Answer️️ -The same stock in a cash account without paying for the stock in full In the over-the-counter market, the term "spread" refers to the differ