FINRA SIE QUESTIONS AND ANSWERS SET A+
✔✔Which of the following are TRUE about GNMA Pass Through Certificates
I They are quoted on a par basis in 32nds
II They are issues in $1,000 denominations
III They trade "and interest"
IV Accrued interest on the certs is computed on a 30 day 360 year basis - ✔✔I III and IV
are TRUE
II is NOT true
they are issued on $25,000 minimum
"and interest" means that they trade with accrued interest
✔✔Which of the following are likely purchasers of commercial paper?
I Individuals
II Insurance Companies
III Trust Companies
IV Open- End Investment Companies - ✔✔II III IV
All but individuals are likely purchases of commercial paper
✔✔A Sell Stop order is executed when?
, I In falling markets
II In rising markets
III at the price specified
IV At the market price - ✔✔In falling markets
at the market price
Sell stop = Stop loss to prevent further losses it becomes a market order and must fill
Buy stop = protects short sellers it becomes a market order once triggered
Think of stop as a bomb going off
Limit = doesn't trigger if not tripped over.
✔✔Which is true regarding warrants?
I Are issues with an exercise price that is higher than the market value of the stock
II Are issued with an exercise price that is lower than the market value of the stock
III Warrants would be exercised when the stock market's price is below the warrant
strike price
IV Warrants would be exercised when the stock's market price is above the warrant
strike price - ✔✔I and IV
Warrants are issued with an exercise price that is higher than the market value of the
stock
They would be exercised when the value of the stock is above the warrant strike price
✔✔Warrants vs Rights
Which has time value
Which has intrinsic - ✔✔Warrants have time value
✔✔Which of the following are TRUE about GNMA Pass Through Certificates
I They are quoted on a par basis in 32nds
II They are issues in $1,000 denominations
III They trade "and interest"
IV Accrued interest on the certs is computed on a 30 day 360 year basis - ✔✔I III and IV
are TRUE
II is NOT true
they are issued on $25,000 minimum
"and interest" means that they trade with accrued interest
✔✔Which of the following are likely purchasers of commercial paper?
I Individuals
II Insurance Companies
III Trust Companies
IV Open- End Investment Companies - ✔✔II III IV
All but individuals are likely purchases of commercial paper
✔✔A Sell Stop order is executed when?
, I In falling markets
II In rising markets
III at the price specified
IV At the market price - ✔✔In falling markets
at the market price
Sell stop = Stop loss to prevent further losses it becomes a market order and must fill
Buy stop = protects short sellers it becomes a market order once triggered
Think of stop as a bomb going off
Limit = doesn't trigger if not tripped over.
✔✔Which is true regarding warrants?
I Are issues with an exercise price that is higher than the market value of the stock
II Are issued with an exercise price that is lower than the market value of the stock
III Warrants would be exercised when the stock market's price is below the warrant
strike price
IV Warrants would be exercised when the stock's market price is above the warrant
strike price - ✔✔I and IV
Warrants are issued with an exercise price that is higher than the market value of the
stock
They would be exercised when the value of the stock is above the warrant strike price
✔✔Warrants vs Rights
Which has time value
Which has intrinsic - ✔✔Warrants have time value
