Sie Unit 8 Q Exam Updated Actual Questions And Correct Answers

SIE UNIT 8 Q EXAM UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS

Question:
All of the following are features of the exchanges except A: two-dollar brokers assisting
in maintaining an orderly market. B: designated market makers maintaining liquidity.
C: a physical floor where traders call out bids and offers. D: employees of the exchange
buying and selling securities on the floor.
Answer:
D

Question:
An investor enters a sell stop limit order at 60. Following the order entry, trades occur
at 62, 60, 59, 61, and
63. The investor will most likely receive A: 61 B: 59 C: 63 D: 60
Answer:
C

Question:
Which of the following is not required to endorse a stock certificate for transfer? A:
Signatures of the receiving registered representative B: Proper endorsement by all
owners C: The correct number of shares are delivered D: Certificates in good condition
Answer:
A

Question:
An investor who has a short position in 500 shares of JKH common stock would
eliminate that position by A: entering an opening purchase order for 500 shares of JKH.
B: entering a closing sale order for 500 shares of JJK. C: entering a closing purchase
order for 500 shares of ABC. D: entering a closing purchase order for 500 shares of JKH.
Answer:
D

Question:
All of the following are true regarding the term market except A: it is unique to the U.S.
securities industry. B: it includes stock exchanges. C: it is where buyers and sellers come
together for the purpose of trading assets. D: it can be a physical place or an electronic
venue.
Answer:
A

, Question:
Carrying firms may not A: clear and settle transactions for their customers. B: execute
transactions for their customers. C: mix customer funds and securities with their own.
D: send trade confirmations and statements to customers.
Answer:
C

Question:
If left unexecuted, a day order will automatically be canceled when? A: On the cancel
date specified by the customer at the time the order is entered B: On the close of the
business day C: On the last business day of June and the last business day of December
D: On the first business day of April and the first business day of October
Answer:
B

Question:
A firm designated as self-clearing can
I. act in a back-office capacity for an introducing firm.
II. not act in a back-office capacity for an introducing firm.
III. clear and settle transactions executed by other firms.
IV. only clear transactions it executed. A: I and III B: II and III C: I and IV D: II and IV
Answer:
A

Question:
A broker-dealer that accepts funds and securities from customers and its correspondent
member firms would most likely be which of the following? A: A fully disclosed
introducing firm B: An investment company C: A carrying firm D: A depository trust
Answer:
C

Question:
A broker-dealer firm purchases 400 shares of ABC Corporation common stock on behalf
of a customer at a price of $40 per share. The firm charges the customer $40 for this
transaction. Which of the following is true? A: The firm is acting as an agent. B: The firm
is acting as a dealer. C: The firm is overcharging the customer. D: The firm is acting as
an underwriter.
Answer:
A

Question:
Narcissus, Inc., a social media company, has shares selling at $50. Your customer is
bearish. He would like to sell the stock short, but not until it retreats at least 10% from
its current price. In order to catch the drop he could A: sell calls at strike price of 45. B:
enter a sell short at stop 45. C: enter a buy stop at 45. D: enter a sell long at 50.
Answer:
B