SIE Mastery Exam Questions With Verified And Updated Solutions.

SIE Mastery Exam Questions With Verified And Updated Solutions. Which of the following may be considered suspicious? - answerA customer unconcerned about losses A corporate stock transaction occurs regular way on Monday, August 3. Ownership of the securities is recognized as changing hands between buyer and seller on - answerWednesday, August 5. (T+2) Your customers, Frank and Gracia Chen, are considering investing in a private placement to add to their portfolio. They mention they are accredited investors. If accurate, they have a net worth of at least - answer$1 million or had an annual income greater than $300,000 in each of the two most recent years. Which of the following would be considered excessive transactions? - answerA registered representative buys and sells the same security for a customer three times during a single day Which of the following statements describing Section 529 plans is true? - answerThe maximum contribution varies from state to state. Which of the following is not a characteristic associated with hedge funds? - answerThey are regulated under the Investment Company Act of 1940. In a cash account, an investor must pay for a purchase by - answerdepositing the entire amount of the trade by the settlement day. A member firm broker-dealer is found to be in violation of a Securities and Exchange Commission (SEC) federal regulation and could be subject to all of the following except - answerjail sentences for directors and officers. An investor notices that a bond originally bought at 95 some years ago is now trading at a price of 88. The investor sells the bond, then buys it back the next day for 88.5 with the intention of declaring a loss from the original purchase and sale on this year's tax return. This would be known as - answera wash sale, and taking the loss is prohibited. *Quickly repurchasing a security that was just sold for a loss is recognized as having the intention to take advantage of the loss for tax purposes but not lose the income or potential for future gains from the security. This is known as a wash sale and taking the loss is prohibited. For the loss to be allowed, the investor must wait at least 30 days before repurchase. Matched orders, pegging, and supporting are all prohibited activities meant to manipulate stock prices. A customer submits a written complaint disputing monetary charges assessed against an account held at a member broker-dealer. Resolution of this complaint will take place by - answerthe Code of Arbitration (COA). *The Code of Arbitration (COA) governs the resolution of disagreements and claims between members, registered representatives, and the public; it addresses monetary claims. Written complaints may come in any form, including instant messages, tweets, texts, and emails. Under the Uniform Transfers to Minors Act (UTMA), a custodian may invest in all of the following except - answerblue-chip stocks on margin. *A custodian may not purchase securities in an account on margin or pledge them as collateral for a loan. Which of the following is a common way to reduce nonsystematic risk? - answerDiversification The residents of the city of Sandy Place, California, recently voted in favor of issuing a bond. The proceeds of the bond will be used to build a baseball stadium for the local minor league baseball team. Though the bond's costs are expected to be covered by the ticket revenue from the stadium, the bond contains a provision that requires the city to pay the bond's interest payments as well as pay the principal at maturity if the ticket sales are insufficient. This bond is an example of - answera general obligation municipal bond. (Go Bond) *This is a type of municipal bond called a double-barrel bond. Though revenue from ticket sales will be used to pay for the bond, ultimately, the cost of the bond may fall back on the taxpayer. That makes this a GO and is why, unlike a revenue bond, the issue had to be approved by the residents of Sandy Place in a vote. Which of the following companies is in a cyclical industry? - answerA heavy equipment maker *Heavy equipment is a cyclical industry, tending to move in tandem with the business cycle. Precious metals tend to be counter cyclical. Food and fuel are defensive industries. Under the Investment Company Act of 1940, an investment company may take all of the following forms except - answera limited partnership with partners as passive investors.