FINRA Practice SIE Exam

The redemption value of an open-end investment company's shares is based on the: previous offering price previous closing NAV NAV computed after the order is received offering price computed after the order is received - answer-NAV computed after the order is received The computation of dollar prices and accrued interest on municipal bonds is normal on what calendar basis? 30/360 30/365 Actual/360 Actual/365 - answer-30/360 Blue-sky laws are regulated by which of the following entities? SEC MSRB FINRA state securities regulators - answer-State securities regulators At the time of issuance, which of the following securities normally has the longest period to expiration? Rights Options Warrants Repurchase agreements - answer-Warrants Regular way settlement on Treasury Bonds is: same day next business day second business day fifth business day - answer-next business day A firm is a participant in a public offering. To sell a substantial amount of the securities to its customers, the firm agrees to repurchase the shares at no less than the original sales price. Such agreements are: prohibited as fraudulent and manipulative. Permissible if the securities are deposited into escrow. prohibited unless the firm immediately sets aside funds for the repurchase permissible if the customers retain the right to sell the securities into the open market. - answer-prohibited as fraudulent and manipulative Under SEC S-P (Consumer Privacy), which of the following information must a firm include in its customer privacy and opt-out notices? the address of the firm's website the fee to opt out from the privacy program the deadline by which to opt out from the privacy program the policies to protect the security of nonpublic information - answer-the policies to protect the security of nonpublic information UTMA accounts are opened under the tax ID number of the: minor donor parent custodian - answer-minor Under FINRA rules, noncash compensation connected with the sale of variable contracts includes all of the following items EXCEPT: gifts meals lodging commissions - answer-commissions Describe the difference between primary distribution and secondary distribution. - answer-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