Comprehensive SIE Practice Exam
The primary purpose of a syndicate desk in the context of an equity offering is to:
build an order book and allocate the stock
3 multiple choice options
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
3 multiple choice options
Which of the following comparisons best describes the essential difference between a primary
distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer while a secondary distribution
involves the sale of already issued and outstanding shares.
3 multiple choice options
The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar
basis?
30/360
3 multiple choice options
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
3 multiple choice options
,Call protection is most valuable to a bond owner when bond prices are generally:
rising
3 multiple choice options
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
3 multiple choice options
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
3 multiple choice options
Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program?
Designating an AML compliance officer
3 multiple choice options
Which of the following actions violates FINRA rules regarding selling away?
Engaging in private securities transactions without written prior consent of the employing BD
3 multiple choice options
Company ABC announces a 20% stock dividend for its common shareholders. If a customer holds 1,000
shares at $50.00, what is the new price and number of shares following the payment of the stock
dividend?
1,200 shares at $41.67
, 3 multiple choice options
We have an expert-written solution to this problem!
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the following features?
Qualified distributions are excluded from federal income tax
3 multiple choice options
An associated person who is not a registered representative is permitted to engage in which of the
following activities?
Provide account opening forms to a new customer
3 multiple choice options
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
3 multiple choice options
A registered representative (RR) who wants to place a mutual fund advertisement must obtain written
approval from which of the following parties?
A registered principal of the RR's firm
3 multiple choice options
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for what
maximum period of time?
13 months
The primary purpose of a syndicate desk in the context of an equity offering is to:
build an order book and allocate the stock
3 multiple choice options
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
3 multiple choice options
Which of the following comparisons best describes the essential difference between a primary
distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer while a secondary distribution
involves the sale of already issued and outstanding shares.
3 multiple choice options
The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar
basis?
30/360
3 multiple choice options
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
3 multiple choice options
,Call protection is most valuable to a bond owner when bond prices are generally:
rising
3 multiple choice options
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
3 multiple choice options
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
3 multiple choice options
Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program?
Designating an AML compliance officer
3 multiple choice options
Which of the following actions violates FINRA rules regarding selling away?
Engaging in private securities transactions without written prior consent of the employing BD
3 multiple choice options
Company ABC announces a 20% stock dividend for its common shareholders. If a customer holds 1,000
shares at $50.00, what is the new price and number of shares following the payment of the stock
dividend?
1,200 shares at $41.67
, 3 multiple choice options
We have an expert-written solution to this problem!
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the following features?
Qualified distributions are excluded from federal income tax
3 multiple choice options
An associated person who is not a registered representative is permitted to engage in which of the
following activities?
Provide account opening forms to a new customer
3 multiple choice options
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
3 multiple choice options
A registered representative (RR) who wants to place a mutual fund advertisement must obtain written
approval from which of the following parties?
A registered principal of the RR's firm
3 multiple choice options
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for what
maximum period of time?
13 months
