SIE Exam Study Material - Study Answer Collection

SIE Exam Study Material - Study Answer Collection The primary purpose of a syndicate desk in the context of an equity offering is to: - answer - build an order book and allocate the stock Which of the following responses describes an advantage of index funds? - answer - Lower management fees due to passive management of the fund Which of the following comparisons best describes the essential difference between a primary distribution and a secondary distribution? - answer - A primary distribution involves a sale of newly issued shares by the issuer while a secondary distribution involves the sale of already issued and outstanding shares. The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar basis? - answer - 30/360 Direct participation programs (DPPs) provide: - answer - exposure to non-correlated assets Call protection is most valuable to a bond owner when bond prices are generally: - answer - rising Which of the following represents the effect of a stock split? - answer - The price per share of common stock decreases Stability in the value of a debt portfolio is greatest when: - answer - maturities of the debt securities are short. Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program? - answer - Designating an AML compliance officer Which of the following actions violates FINRA rules regarding selling away? - answer - Engaging in private securities transactions without written prior consent of the employing BD Company ABC announces a 20% stock dividend for its common shareholders. If a customer holds 1,000 shares at $50.00, what is the new price and number of shares following the payment of the stock dividend? - answer - 1,200 shares at $41.67 Roth 401(k) and Roth individual retirement account (IRA) plans share which of the following features? - answer - Qualified distributions are excluded from federal income tax An associated person who is not a registered representative is permitted to engage in which of the following activities? - answer - Provide account opening forms to a new customer The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at: - answer - a premium A registered representative (RR) who wants to place a mutual fund advertisement must obtain written approval from which of the following parties? - answer - A registered principal of the RR's firm Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for what maximum period of time? - answer - 13 months To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following products does a corporation issue? - answer - Rights The call provision of a bond stipulates which of the following factors? - answer - Call date and call price A decline in the gross domestic product (GDP) must last for at least how many quarters to be considered a recession? - answer - 2 quarters Regular way settlement on Treasury bonds is: - answer - next business day Which of the following statements is true regarding a customer account held as tenants in common? - answer - The ownership of the decedent's assets is governed by their will or state law. Which of the following statements is true about treasury stock? - answer - It is issued stock that has been subsequently reacquired by the corporation Which of the following investment risks is the greatest risk in a variable life insurance policy? - answer - Market risk In the event of a stock split, which of the following parties is required to maintain a record of the shareholders eligible to receive the additional shares? - answer - Transfer agent UTMA accounts are opened under the tax ID of the: - answer - minor Under industry regulations, an initial purchase of $3,000 of common stock in a margin account requires a cash deposit of: - answer - $2,000 At issue, which of the following debt securities mature in one year or less?