SIE mastery Exam Questions With Accurate Answers.

SIE mastery Exam Questions With Accurate Answers. Which statement is TRUE when comparing types of management companies? - answerOpen-end funds are mutual funds while closed-end funds are publicly traded funds Which of the following is NOT part of the secondary market? - answerFifth Market The term "publicly traded fund" is the common name for a(n) - answerclose ended management company Which of the following is a redeemable security? - answerOpen-end fund American Depositary Receipts would NOT trade on which of the following exchanges? - answerTokyo Stock Exchange ABC corporation has set the record date for a cash dividend at Tuesday, July 16th. The last day to buy the stock "regular way" and receive the dividend is: - answerJuly 12th A corporation has been in financial difficulty and its stock price has fallen to an extremely low level. To avoid delisting, it wishes to raise its stock and it wants to conserve its cash. To do this, it should declare a: - answerreverse stock split 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 All of the following terms apply to publicly traded fund shares EXCEPT: - answerredeemable Retail member firms that route orders to market makers in return for compensation: - answeris permitted to do so, subject to best execution requirements and disclosure requirements Which of the following would be a quote for an airline bond? - answer105 5/8 A company's common stock is selling in the market at a "multiple" of 15. If the market price of the common stock is currently $15, what is the earnings per share? - answer$1.00 Buy limit orders: - answerare used to buy securities at prices that are lower than the current market price Which statement is TRUE regarding oil and gas limited partnership interests? - answerThe primary tax benefit of an exploratory program is the intangible drilling cost deduction A securities dealer is quoting ABCD stock at 12.00 - 13.00 (10 x 15). This means that the dealer is willing to: - answerbuy 1,000 shares at $12 and sell 1,500 shares at $13 ABC Company has issued 13%, $100 par cumulative preferred stock. Two years ago, ABC paid a preferred dividend of $8. Last year, it paid a preferred dividend of $12 per share. This year, ABC wishes to pay a common dividend. In order to make the distribution to common shareholders, each preferred share must be paid a dividend of: - answer$19 A convertible bond is convertible into common stock at a 32:1 ratio. The common stock is currently trading at $30. The bond is currently trading at $980. What is the bond's parity price? - answer$960 When the market price of ACME Common stock is at $45, which of the following actions, when completed by ACME Corporation, would raise additional capital? - answerAnnouncement of a rights distribution, allowing existing shareholders to buy the stock at $35 per share Which statement is TRUE regarding ETFs (Exchange Traded Funds)? - answerThe purchaser of an ETF is required to receive either a prospectus or a Product Description summarizing key information about the ETF A proxy given to a caretaker to vote a stockholder's shares is a: - answerpower of attorney A debt issue is commonly referred to as "junk" if its credit rating is BELOW: - answerBBB A customer who places an order to sell 100 shares of Adap Fund will receive: - answer$750 less a commission (If closed-end fund shares are sold, the investor gets the current market price less a commission paid for executing the trade. The last price for Adap Fund is $7.50. An investor selling 100 shares receives $750 less a commission.) An oil and gas program that is designed to take advantage of the depletion allowance, without immediate deductions is a(n): - answerincome program Which statement is TRUE about a regular way stock trade effected in a cash account? - answerPayment in full is required in 2 business days Which statement is TRUE regarding sponsored American Depositary Receipts? - answerSponsored ADRs provide annual reports to shareholders A customer bought a $1,000 par convertible subordinated debenture at par, convertible into common at $25 per share. If the bond's market price increases by 20%, the parity price of the stock will be: - answer30