FINRA /
SIE Exam Questions With Correct Answers
/ // // // // //
If /
/interest /
/Rates /
/fall /
/the /
/issuer /
/will /
/most /
/likely /
/call /
/which /
/bonds /
/first? //- /
/correct //answer(s) //✔✔ //High //Dividend //Rate //preferred //issues //trading //at //a //premium
What /
/are /
/some /
/actions /
/by //
a/
/corporation /
/will /
/affect /
/an /
/individuals /
/common /
/shareholder's /
/equity //- //correct //answer(s) //✔✔ //Conversion //of //convertible //preferred //stocks //or //bond
Repurchase //of //common //shares //
,Issuance //of //additional //common //shares //
(Stock /
/splits /
/do /
/not //effect //shareholders //equity //but //it //must //be //voted //on //because //it //effects //Par //Value)
Benefits /
/to //
a/
/Convertible /
/stock /
/compared /
/to //
a/
/regular /
/debenture //- /
/correct //answer(s) //✔✔ //Convertible //stock //will //have //a //slightly //lower //yield //than //non-
convertible //however //it //will //raise //in //value //as //the //market //price //of //common //stock //rises
What /
/traits /
/do /
/preferred /
/stock /
/and /
/bonds /
/have /
/in //common? //How //are //they //different? //- //correct //answer(s) //✔✔ //Can //be //callable //by //issuer,
//both //have //periodic //payments. //Both //are //senior //securities //to //common //stock. //
Neither //have //voting //rights
Preferred /
/is //paid //dividends //on //a //percentage //of //face //value //much //like //the //yield //of //a //bond. //
,Preferred /
/stock /
/has /
/no //maturity //date //and //can //be //held //perpetually //while //bonds //have //a //set //maturity //date. //
Payments /
/to /
/preferred /
/stock /
/are //not //mandatory //unless //a //declared //dividend //has //been //issued //to //common //stock //
Payments //to //bond //holders //are //mandatory
When /
/are //common //dividends //declared //and //paid? //- //correct //answer(s) //✔✔ //Quarterly //for //both
A/
/customer /
/owns /
/256 /
/shares /
/of /
/ABC //common //stock. //ABC //declares //a //rights //offering, //with //the //terms //being //that //for //every
//15 /
/rights //
a/
/shareholder /
/may /
/purchase /
/one /
/additional /
/share.at /
/$24 //a //share. //Any //fractional //rights //may //be //rounded //up //to //buy //an //additional //share. //
How /
/many /
/shares //may //the //customer //buy //with //these //right? //- //correct //answer(s) //✔✔ //A //share //holder
//can //buy //a //maximum //of //18 //shares //with //these //rights //paying //$432 //for //them. //
, The //17.06 //shares //may //be //rounded //up //to //18.
XXYZ /
/ADR /
/(American /
/Depository /
/Receipt) /
/represents /
/10% /
/of /
/the /
/value /
/of /
/an /
/XXYZ /
/ordinary /
/share. /
/The /
/ordinary /
/shares /
/trade /
/on /
/the /
/London /
/Stock /
/Exchange, /
/where /
/the /
/current /
/price /
/is /
/400 /
/British /
/Pounds /
/(BP). /
/The /
SIE Exam Questions With Correct Answers
/ // // // // //
If /
/interest /
/Rates /
/fall /
/the /
/issuer /
/will /
/most /
/likely /
/call /
/which /
/bonds /
/first? //- /
/correct //answer(s) //✔✔ //High //Dividend //Rate //preferred //issues //trading //at //a //premium
What /
/are /
/some /
/actions /
/by //
a/
/corporation /
/will /
/affect /
/an /
/individuals /
/common /
/shareholder's /
/equity //- //correct //answer(s) //✔✔ //Conversion //of //convertible //preferred //stocks //or //bond
Repurchase //of //common //shares //
,Issuance //of //additional //common //shares //
(Stock /
/splits /
/do /
/not //effect //shareholders //equity //but //it //must //be //voted //on //because //it //effects //Par //Value)
Benefits /
/to //
a/
/Convertible /
/stock /
/compared /
/to //
a/
/regular /
/debenture //- /
/correct //answer(s) //✔✔ //Convertible //stock //will //have //a //slightly //lower //yield //than //non-
convertible //however //it //will //raise //in //value //as //the //market //price //of //common //stock //rises
What /
/traits /
/do /
/preferred /
/stock /
/and /
/bonds /
/have /
/in //common? //How //are //they //different? //- //correct //answer(s) //✔✔ //Can //be //callable //by //issuer,
//both //have //periodic //payments. //Both //are //senior //securities //to //common //stock. //
Neither //have //voting //rights
Preferred /
/is //paid //dividends //on //a //percentage //of //face //value //much //like //the //yield //of //a //bond. //
,Preferred /
/stock /
/has /
/no //maturity //date //and //can //be //held //perpetually //while //bonds //have //a //set //maturity //date. //
Payments /
/to /
/preferred /
/stock /
/are //not //mandatory //unless //a //declared //dividend //has //been //issued //to //common //stock //
Payments //to //bond //holders //are //mandatory
When /
/are //common //dividends //declared //and //paid? //- //correct //answer(s) //✔✔ //Quarterly //for //both
A/
/customer /
/owns /
/256 /
/shares /
/of /
/ABC //common //stock. //ABC //declares //a //rights //offering, //with //the //terms //being //that //for //every
//15 /
/rights //
a/
/shareholder /
/may /
/purchase /
/one /
/additional /
/share.at /
/$24 //a //share. //Any //fractional //rights //may //be //rounded //up //to //buy //an //additional //share. //
How /
/many /
/shares //may //the //customer //buy //with //these //right? //- //correct //answer(s) //✔✔ //A //share //holder
//can //buy //a //maximum //of //18 //shares //with //these //rights //paying //$432 //for //them. //
, The //17.06 //shares //may //be //rounded //up //to //18.
XXYZ /
/ADR /
/(American /
/Depository /
/Receipt) /
/represents /
/10% /
/of /
/the /
/value /
/of /
/an /
/XXYZ /
/ordinary /
/share. /
/The /
/ordinary /
/shares /
/trade /
/on /
/the /
/London /
/Stock /
/Exchange, /
/where /
/the /
/current /
/price /
/is /
/400 /
/British /
/Pounds /
/(BP). /
/The /
