FINRA SIE Practice Test with correct |\ |\ |\ |\ |\ |\
answers
Upon Expiration, all in-the-money S&P 100 Index call options are
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settled by the delivery of which of the following? - CORRECT
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ANSWERS ✔✔Cash |\
Which of the following statements is true about treasury stock? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔It is issued stock that has been
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subsequently reacquired by the corporation |\ |\ |\ |\
In the event of a stock split, which of the following parties is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
required to maintain a record of the shareholders eligible to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
receive the additional shares? - CORRECT ANSWERS ✔✔Transfer
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Agent
Which of the following actions is required of a broker-dealer's
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
anti-money laundering (AML) program? - CORRECT ANSWERS
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✔✔Designating an AML compliance officer |\ |\ |\ |\
A registered representative (RR) wants to participate in a private
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securities transaction. Which of the following actions must the RR
|\ |\ |\ |\ |\ |\ |\ |\ |\
take? - CORRECT ANSWERS ✔✔Send written notice to his
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
supervisor outlining the activity and compensation structure
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A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and
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simultaneously buys 100 shares of ABC stock for $35 per share. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
, The customer will break even when the stock is selling at what
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price per share at expiration? - CORRECT ANSWERS ✔✔$38
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The call provision of a bond stipulates which of the following
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factors? - CORRECT ANSWERS ✔✔Call date and call price
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When is interest on Treasury notes paid? - CORRECT ANSWERS
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✔✔Semiannually
The owner of which of the following products is MOST exposed to
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inflationary risk? - CORRECT ANSWERS ✔✔Treasury bonds
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(because it's long-term) |\ |\
A registered representative (RR) who wants to place a mutual
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
fund advertisement must obtain written approval from which of
|\ |\ |\ |\ |\ |\ |\ |\ |\
the following parties? - CORRECT ANSWERS ✔✔A registered
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principal of the RR's firm |\ |\ |\ |\
A company announces a tender offer to its shareholders with the
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intent to buy a maximum of 1 million shares of its outstanding
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
stock at $10 per share and sets no minimum number of shares to
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be purchased. An investor wants to participate in this offer and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
tenders his 1,000 share position. At the close of the offer period,
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only 900,000 shares have been tendered. How many, if any, of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the investor's shares will the company purchase? - CORRECT
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ANSWERS ✔✔1,000 (1,000 x 100 = 100,000 shares; 1 million -|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
900k = 100k) |\ |\
answers
Upon Expiration, all in-the-money S&P 100 Index call options are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
settled by the delivery of which of the following? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Cash |\
Which of the following statements is true about treasury stock? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔It is issued stock that has been
|\ |\ |\ |\ |\ |\ |\ |\ |\
subsequently reacquired by the corporation |\ |\ |\ |\
In the event of a stock split, which of the following parties is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
required to maintain a record of the shareholders eligible to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
receive the additional shares? - CORRECT ANSWERS ✔✔Transfer
|\ |\ |\ |\ |\ |\ |\ |\
Agent
Which of the following actions is required of a broker-dealer's
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
anti-money laundering (AML) program? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔Designating an AML compliance officer |\ |\ |\ |\
A registered representative (RR) wants to participate in a private
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
securities transaction. Which of the following actions must the RR
|\ |\ |\ |\ |\ |\ |\ |\ |\
take? - CORRECT ANSWERS ✔✔Send written notice to his
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
supervisor outlining the activity and compensation structure
|\ |\ |\ |\ |\ |\
A customer BUYS a 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? - CORRECT ANSWERS ✔✔$38
|\ |\ |\ |\ |\ |\ |\ |\
The call provision of a bond stipulates which of the following
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
factors? - CORRECT ANSWERS ✔✔Call date and call price
|\ |\ |\ |\ |\ |\ |\ |\
When is interest on Treasury notes paid? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Semiannually
The owner of which of the following products is MOST exposed to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
inflationary risk? - CORRECT ANSWERS ✔✔Treasury bonds
|\ |\ |\ |\ |\ |\ |\ |\
(because it's long-term) |\ |\
A registered representative (RR) who wants to place a mutual
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
fund advertisement must obtain written approval from which of
|\ |\ |\ |\ |\ |\ |\ |\ |\
the following parties? - CORRECT ANSWERS ✔✔A registered
|\ |\ |\ |\ |\ |\ |\ |\
principal of the RR's firm |\ |\ |\ |\
A company announces a tender offer to its shareholders with the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
intent to buy a maximum of 1 million shares of its outstanding
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
stock at $10 per share and sets no minimum number of shares to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
be purchased. An investor wants to participate in this offer and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
tenders his 1,000 share position. At the close of the offer period,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
only 900,000 shares have been tendered. How many, if any, of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the investor's shares will the company purchase? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔1,000 (1,000 x 100 = 100,000 shares; 1 million -|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
900k = 100k) |\ |\
