Smart SIE Mastery Exam 1 Questions With Accurate Answers.

Smart SIE Mastery Exam 1 Questions With Accurate Answers. Securities that are the means by which foreign issues are traded in the United States are termed: - answerADRs Which statement is TRUE about hedge funds? - answerHedge funds are illiquid investments that use aggressive investment strategies to maximize returns, and thus have high risk levels Treasury Notes are issued by the U.S. Government in which form? - answerBook Entry American Depositary Receipts would trade on all of the following exchanges EXCEPT the: - answerLondon Stock Exchange Which statement is FALSE regarding Treasury Stock? - answerTreasury Stock has voting rights A customer places the following instructions with his registered representative: "Buy 100 shares of ABC if the market rises to $45, but don't buy the stock for more than $50." What is the appropriate order to be placed? - answerBuy ABC @ 45 Stop 50 Limit The orders that are higher in price than the current market are: - answerOpen Sell Limits and Open Buy Stops Under IRS rules, if a customer selling shares of stock wishes to use specific identification instead of FIFO for cost basis reporting, the broker-dealer effecting the trade must be notified of this no later than: - answerSettlement Date Which of the following money market instruments is rated on a "P" scale? - answerCommercial Paper Mutual fund shares are: - answerRedeemable and Managed Which statement is TRUE about mutual fund "Class A" shares? - answerClass A shares impose no, or a very low, 12b-1 fee Which rating applies to short term municipal issues? - answerMIG 1 The "after hours" market is characterized by: - answerWide Spreads and Low Trading Volume All of the following debt securities may be issued by corporations EXCEPT: - answerMoral obligation bonds All of the following statements are correct when comparing bonds and preferred stock EXCEPT? - answerPayments to bondholders are subject to approval of the Board of Directors Which statement is TRUE about variable annuities? - answerVariable annuities are participating unit investment trusts Which statement about Treasury STRIPS is FALSE? - answerTreasury STRIPS are not susceptible to purchasing power risk ABC 10% $100 par preferred is trading at $115 in the market. The current yield is: - answer8.7% 10/115 =8.7% In January, 20XX a customer buys 100 shares of ABC stock at $30 per share and pays a $2 commission per share. The customer receives $1 in cash dividends during the year. The customer's cost basis in the stock is: - answer$32 per share A municipality has a tax rate of 18 mills. A piece of real property in the municipality is assessed at $180,000 and has a fair market value of $165,000. The annual tax liability on the property is: - answer$3,240 Dividends on preferred stock may be paid in: - answerCash Assets - Liabilities for a mutual fund equals: - answerNet Asset Value Which statement is TRUE when comparing exchange traded index funds to index mutual funds - answerNet asset values for exchange traded index funds are calculated continuously through the day while net asset values for index mutual funds are computed once each day An oil and gas program that is designed to take advantage of the depletion allowance, without immediate deductions is a(n): - answerincome program Trades of all of the following will settle in Fed Funds EXCEPT: - answerPrime Commercial Paper Which of the following mutual fund terms are synonymous? - answerAsk; Public Offering Price