FIN 320 SIE EXAM 2026–2027 COMPLETE
STUDY GUIDE | PRACTICE QUESTIONS &
ANSWERS (HIGHLIGHTED) ALREDY
GRADED A+ 100% PASS LATEST!!
What type of risk is unique to a specific industry, business enterprise, or
investment type?
Nonsystematic risk
Under which of the following circumstances is an investor in a position to
acquire stock?
Buy a call, sell a call (The holder of a call has the right to buy stock at the strike
price if exercised. The seller of a put is obligated to buy stock at the strike price if
exercised)
Options- a premium
the cost of an option contract, expressed in dollars per share of the underlying
stock
Options- strike price
,The price at which the stock will be bought or sold if the contract is exercised,
expressed in dollars per share
A customer believes that ABC's price will go up but does not have the money
to buy 100 shares right now. How could the customer use options to profit
from an increase in the stock's price?
buy calls, write puts (both are bullish)
A corporation's offer to current stockholders of the ability to purchase a
proportionate number of new shares at a specific price for a limited time is
called a
right (they usually expire in 30-45 days)
American depositary receipts (ADRs)
issued by banks, represent a specific number of shares of a foreign company, and
trade and pay dividends in dollars
Which of the following records must be maintained for 6 years?
, Customer ledgers (statements)
While underwriters can assist with preparation and filing, the accuracy and
adequacy of these documents is the responsibility of the
Issuing corporation
What institutions serve as depository and clearing facilities?
Depository Trust Company and National Securities Clearing Corporation (most
specifically) then carrying and clearing firms can act as these as well.
What is a transfer agent?
(often a bank) for a corporation is responsible for ensuring that its securities are
issued in the correct owner's name, canceling old and issuing new certificates,
maintaining records of ownership, and handling problems relating to lost, stolen, or
destroyed certificates
What is the function of the clearing corporation?
STUDY GUIDE | PRACTICE QUESTIONS &
ANSWERS (HIGHLIGHTED) ALREDY
GRADED A+ 100% PASS LATEST!!
What type of risk is unique to a specific industry, business enterprise, or
investment type?
Nonsystematic risk
Under which of the following circumstances is an investor in a position to
acquire stock?
Buy a call, sell a call (The holder of a call has the right to buy stock at the strike
price if exercised. The seller of a put is obligated to buy stock at the strike price if
exercised)
Options- a premium
the cost of an option contract, expressed in dollars per share of the underlying
stock
Options- strike price
,The price at which the stock will be bought or sold if the contract is exercised,
expressed in dollars per share
A customer believes that ABC's price will go up but does not have the money
to buy 100 shares right now. How could the customer use options to profit
from an increase in the stock's price?
buy calls, write puts (both are bullish)
A corporation's offer to current stockholders of the ability to purchase a
proportionate number of new shares at a specific price for a limited time is
called a
right (they usually expire in 30-45 days)
American depositary receipts (ADRs)
issued by banks, represent a specific number of shares of a foreign company, and
trade and pay dividends in dollars
Which of the following records must be maintained for 6 years?
, Customer ledgers (statements)
While underwriters can assist with preparation and filing, the accuracy and
adequacy of these documents is the responsibility of the
Issuing corporation
What institutions serve as depository and clearing facilities?
Depository Trust Company and National Securities Clearing Corporation (most
specifically) then carrying and clearing firms can act as these as well.
What is a transfer agent?
(often a bank) for a corporation is responsible for ensuring that its securities are
issued in the correct owner's name, canceling old and issuing new certificates,
maintaining records of ownership, and handling problems relating to lost, stolen, or
destroyed certificates
What is the function of the clearing corporation?
