SIE EXAM question and answers rated A+ 2023 GRADED A+

SIE EXAM question and answers rated A+ 2023 GRADED A+ Which shares of preferred stock may increase the most if the value of the company's common stock appreciates? - correct answer Convertible preferred stock can be exchanged for the common stock of the issuer. For that reason, if the common stock's value increases, the market value of the convertible preferred stock will also increase. Activities of Non-registered Persons - correct answer extend invites to firm events, inquire as to whether customer wants to discusse investments w RR, inquire if prospective customer wants to receieve investment lit from firm non reg CANNOT - correct answer accept customer orders, 2 levels of qualification and reg - correct answer 1. RR: generally sales personell enaged in securities business activities, 2. Principals: officers and managament or supervisorypersonal series 6 - correct answer Investment Company Products/Variable Contracts Limited Representative- purchase sell mutual funds closed end funds for IPO UITS variable annuities life insurance municipal fund securities Variable Annuity - correct answer Annuity that has a varying rate of return based on the mutual funds in which one has invested. a type of annuity contract that allows for the accumulation and disbursement of capital on a tax-deferred basis. There are two elements to an annuity - the principal, which is the amount paid into the annuity over a period of time, and the returns on that principal. Once an individual enters into a contract with the insurance company offering the annuity, they begin the process of paying into the account which is often termed the accumulation phase. The second part, and probably the one that is of the utmost importance to the investor, is the payout phase. This is triggered when the investor annuitizes the annuity, which is the process of converting this investment into a series of periodic income payments. Most annuities will not allow the investor to withdraw funds from that account once the payout phase has commenced. Unit Investment Trusts - correct answer money pooled from many investors that is invested in a portfolio fixed for the life of the fund Mutual fund - correct answer an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. closed-end fund - correct answer a mutual fund with a fixed number of shares that are issued by an investment company when the fund is first organized- fixed amount of capital through an initial public offering (IPO) and then lists shares for trade on a stock exchange. Like a mutual fund, a closed-end fund has a professional manager overseeing the portfolio and actively buying and selling holding assets. Similar to an exchange-traded fund, it trades like equity, as its price fluctuates throughout the trading day. However, the closed-end fund is unique in that, after its IPO, the fund's parent company issues no additional shares. Nor will the fund itself redeem—buy back—shares. Instead, like individual stock shares, the fund can only be bought or sold on the secondary market by investors. Both closed-end funds and open-end funds - correct answer are run by an investment advisor, through a management team that trades the portfolio. Both also charge an annual expense ratio and can make income and capital gain distributions to shareholders. Net Asset Value - correct answer tells you the market price for a share of a mutual fund. The NAV of the fund is calculated regularly. However, the price that it trades for on the exchange is determined entirely by supply and demand. This investor demand can lead to a closed-end fund trading at a premium or a discount to its NAV. A premium price means the price of a share is above the NAV, while a discount is the opposite, below NAV, value.