SIE PRACTICE EXAMS WITH CORRECT ANSWERS
GRADED A+ /PRACTICE TEST
1. Which corporate voting procedures entitles a shareholder to one vote per share, and
votes must be divided evenly among the candidates being voted on? - ANSWER-Statutory
voting
2. What market refers to the trading of exchange-listed securities in the over-the-counter
market? These trades allow institutional investors to trade blocks of securities directly,
rather than through an exchange, providing liquidity and anonymity to buyers. -
ANSWER-Third market
3. An investor sells a naked call on Omikron for a $250 premium. What is true regarding the
investors position? - ANSWER-The investor's potential loss is unlimited
4. Which act created the SEC and empowered it with broad authority over all aspects of the
securities industry? - ANSWER-Securities Exchange Act of 1934
5. A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment advisor
firms and advisors? - ANSWER-BrokerCheck
6. The Federal Reserve Board performs what actions? - ANSWER-It sets monetary policy, but
does not set tax policy
7. An offering of shares to existing stockholders on a pro-rata basis is called a - ANSWER-
Rights offering
, 8. The difference between a bond's price and the conversion parity price is referred to as -
ANSWER-conversion premium
9. An individual who meets what criteria must register as an investment adviser? -
ANSWER-The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
10. A type of preferred stock that gives the investor the right to receive dividends equal to
the normally specified rate, as well as an additional dividend based on a specific
predetermined condition is called a - ANSWER-participating preferred stock
11. Profit sharing plans have what characteristic? - ANSWER-they can be invested entirely in
company stock
12. What is true regarding the Central Registration Depository (CRD)? - ANSWER-It was
developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a
single, nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
13. Who is responsible for maintaining fair and orderly markets for an assigned set of listed
firms? They operate both manually and electronically to facilitate price discovery during
market opens, closes, and during periods of trading imbalances and instability. -
ANSWER-Designated Market Makers
14. If real GDP declined the last 3 quarters, how many more consecutive quarters of decline
would be needed to be classified as an economic depression? - ANSWER-3 quarters
GRADED A+ /PRACTICE TEST
1. Which corporate voting procedures entitles a shareholder to one vote per share, and
votes must be divided evenly among the candidates being voted on? - ANSWER-Statutory
voting
2. What market refers to the trading of exchange-listed securities in the over-the-counter
market? These trades allow institutional investors to trade blocks of securities directly,
rather than through an exchange, providing liquidity and anonymity to buyers. -
ANSWER-Third market
3. An investor sells a naked call on Omikron for a $250 premium. What is true regarding the
investors position? - ANSWER-The investor's potential loss is unlimited
4. Which act created the SEC and empowered it with broad authority over all aspects of the
securities industry? - ANSWER-Securities Exchange Act of 1934
5. A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment advisor
firms and advisors? - ANSWER-BrokerCheck
6. The Federal Reserve Board performs what actions? - ANSWER-It sets monetary policy, but
does not set tax policy
7. An offering of shares to existing stockholders on a pro-rata basis is called a - ANSWER-
Rights offering
, 8. The difference between a bond's price and the conversion parity price is referred to as -
ANSWER-conversion premium
9. An individual who meets what criteria must register as an investment adviser? -
ANSWER-The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
10. A type of preferred stock that gives the investor the right to receive dividends equal to
the normally specified rate, as well as an additional dividend based on a specific
predetermined condition is called a - ANSWER-participating preferred stock
11. Profit sharing plans have what characteristic? - ANSWER-they can be invested entirely in
company stock
12. What is true regarding the Central Registration Depository (CRD)? - ANSWER-It was
developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a
single, nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
13. Who is responsible for maintaining fair and orderly markets for an assigned set of listed
firms? They operate both manually and electronically to facilitate price discovery during
market opens, closes, and during periods of trading imbalances and instability. -
ANSWER-Designated Market Makers
14. If real GDP declined the last 3 quarters, how many more consecutive quarters of decline
would be needed to be classified as an economic depression? - ANSWER-3 quarters
