SIE Practice Exam 2023| 75 Questions| With
Complete Solutions
a company announces a tender offer to its shareholders with the
intent to buy a maximum of 1 million shares of its outstanding
stock at $10 per share and sets no minimum of shares to be
purchased. An investor wants to participate in this offer and
tenders his 1000 share position. At the close of the offer period,
only 900,000 shares have been tendered. How many, if any, of
the investor's shares will the company purchase?
a. 0
b. 100
c. 900
d. 1000 correct answer: 1000
Company ABC announces a 20% stock dividend for its common
shareholders. If a customer holds 1000 shares at $50 what is the
new price and number of shares following the payment of the
stock dividend?
a. 800 shares at 62.50
b. 1000 shares at 41.67
c. 1200 shares at 41.67
d. 1200 shares at 50 correct answer: c. 1200 shares at 41.67
When a broker-dealer charges a commission on a securities
transaction, it has acted as
,a. agent
b. a principal
c. an underwriter
d. a market maker correct answer: a. agent
roth 401(k) and Roth individual retirement account plans share
which of the following features?
a. contributions are made pretax
b. neither account has maximum contribution limits
c. neither account is subject to early distribution penalties
d. qualified distributions are excluded from federal income tax
correct answer: d. qualified distributions are excluded from
federal income tax
A savings account at a bank is guaranteed by which of the
following entities?
a. fdic
b. sipc
c. federal reserve
d. department of treasury correct answer: fdic
which of the following actions is required when a firm receives
cash in excess of 10,000 from one customer in one business
day?
a. file a currency transaction report
b. file a suspicious activity report (SAR) with the SEC
c. issue a cash transfer receipt to the customer
, d. place a 5 day hold on the customers account for the funds
received correct answer: File a currency transaction report
(CTR)
A customer has a cash balance in her account together with long
positions in several securities. She has made no securities
transactions in the account during the past 18 months. How
often must the firm send her an account statement?
a. monthly
b. quarterly
c. semiannually
d. annually correct answer: quarterly
a decline in the gross domestic product must last for how many
quarters to be considered a recession?
a. 1 quarter
b. 2 quarters
c. 3 quarters
d. 4 quarters correct answer: 2 quarters
When is interest in treasury notes paid?
a. quarterly
b. semiannually
c. annually
d. at maturity correct answer: semiannually
Which of the following represents the effect of a stock split?
Complete Solutions
a company announces a tender offer to its shareholders with the
intent to buy a maximum of 1 million shares of its outstanding
stock at $10 per share and sets no minimum of shares to be
purchased. An investor wants to participate in this offer and
tenders his 1000 share position. At the close of the offer period,
only 900,000 shares have been tendered. How many, if any, of
the investor's shares will the company purchase?
a. 0
b. 100
c. 900
d. 1000 correct answer: 1000
Company ABC announces a 20% stock dividend for its common
shareholders. If a customer holds 1000 shares at $50 what is the
new price and number of shares following the payment of the
stock dividend?
a. 800 shares at 62.50
b. 1000 shares at 41.67
c. 1200 shares at 41.67
d. 1200 shares at 50 correct answer: c. 1200 shares at 41.67
When a broker-dealer charges a commission on a securities
transaction, it has acted as
,a. agent
b. a principal
c. an underwriter
d. a market maker correct answer: a. agent
roth 401(k) and Roth individual retirement account plans share
which of the following features?
a. contributions are made pretax
b. neither account has maximum contribution limits
c. neither account is subject to early distribution penalties
d. qualified distributions are excluded from federal income tax
correct answer: d. qualified distributions are excluded from
federal income tax
A savings account at a bank is guaranteed by which of the
following entities?
a. fdic
b. sipc
c. federal reserve
d. department of treasury correct answer: fdic
which of the following actions is required when a firm receives
cash in excess of 10,000 from one customer in one business
day?
a. file a currency transaction report
b. file a suspicious activity report (SAR) with the SEC
c. issue a cash transfer receipt to the customer
, d. place a 5 day hold on the customers account for the funds
received correct answer: File a currency transaction report
(CTR)
A customer has a cash balance in her account together with long
positions in several securities. She has made no securities
transactions in the account during the past 18 months. How
often must the firm send her an account statement?
a. monthly
b. quarterly
c. semiannually
d. annually correct answer: quarterly
a decline in the gross domestic product must last for how many
quarters to be considered a recession?
a. 1 quarter
b. 2 quarters
c. 3 quarters
d. 4 quarters correct answer: 2 quarters
When is interest in treasury notes paid?
a. quarterly
b. semiannually
c. annually
d. at maturity correct answer: semiannually
Which of the following represents the effect of a stock split?
