SIE PRACTICE EXAM QUESTIONS &
DETAILED ANSWERS RATED 100%
CORRECT
Which corporate voting procedures entitles a shareholder to one vote per share, and votes
must be divided evenly among the candidates being voted on? CORRECT ANSWER - Statutory
voting
What market refers to the trading of exchange-listed securities in the over-the-counter market?
These trades allow institutional investors to trade blocks of securities directly, rather than
through an exchange, providing liquidity and anonymity to buyers. CORRECT ANSWER - Third
market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding the
investors position? CORRECT ANSWER - The investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of the
securities industry? CORRECT ANSWER - Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the professional
backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors?
CORRECT ANSWER - BrokerCheck
The Federal Reserve Board performs what actions? CORRECT ANSWER - It sets monetary policy,
but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a CORRECT ANSWER -
Rights offering
, The difference between a bond's price and the conversion parity price is referred to as
CORRECT ANSWER - conversion premium
An individual who meets what criteria must register as an investment adviser? CORRECT
ANSWER - The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to the
normally specified rate, as well as an additional dividend based on a specific predetermined
condition is called a CORRECT ANSWER - participating preferred stock
Profit sharing plans have what characteristic? CORRECT ANSWER - they can be invested entirely
in company stock
What is true regarding the Central Registration Depository (CRD)? CORRECT ANSWER - It was
developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a single,
nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms?
They operate both manually and electronically to facilitate price discovery during market opens,
closes, and during periods of trading imbalances and instability. CORRECT ANSWER -
Designated Market Makers
If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would
be needed to be classified as an economic depression? CORRECT ANSWER - 3 quarters
DETAILED ANSWERS RATED 100%
CORRECT
Which corporate voting procedures entitles a shareholder to one vote per share, and votes
must be divided evenly among the candidates being voted on? CORRECT ANSWER - Statutory
voting
What market refers to the trading of exchange-listed securities in the over-the-counter market?
These trades allow institutional investors to trade blocks of securities directly, rather than
through an exchange, providing liquidity and anonymity to buyers. CORRECT ANSWER - Third
market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding the
investors position? CORRECT ANSWER - The investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of the
securities industry? CORRECT ANSWER - Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the professional
backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors?
CORRECT ANSWER - BrokerCheck
The Federal Reserve Board performs what actions? CORRECT ANSWER - It sets monetary policy,
but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a CORRECT ANSWER -
Rights offering
, The difference between a bond's price and the conversion parity price is referred to as
CORRECT ANSWER - conversion premium
An individual who meets what criteria must register as an investment adviser? CORRECT
ANSWER - The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to the
normally specified rate, as well as an additional dividend based on a specific predetermined
condition is called a CORRECT ANSWER - participating preferred stock
Profit sharing plans have what characteristic? CORRECT ANSWER - they can be invested entirely
in company stock
What is true regarding the Central Registration Depository (CRD)? CORRECT ANSWER - It was
developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a single,
nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms?
They operate both manually and electronically to facilitate price discovery during market opens,
closes, and during periods of trading imbalances and instability. CORRECT ANSWER -
Designated Market Makers
If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would
be needed to be classified as an economic depression? CORRECT ANSWER - 3 quarters
