SIE Exam-Questions with Correct Answers/ Verified/ 100% Pass
No- Load Mutual funds may have lower expense ratios than load mutual funds for which reason? -
✔️✔️No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for
what maximum period of time? - ✔️✔️13 months
At the time of issuance, which of the following securities normally has the longest period to
expiration? - ✔️✔️Warrants
Under the Securities act of 1933, registration is required for which of the following securities? -
✔️✔️American Depository receipts (ADRs)
the primary purpose of a syndicate desk in the context of an equity offering is to - ✔️✔️build an
order book and allocate the stock
what is the cost basis of an inherited mutual fund? - ✔️✔️the net asset value (NAV) of the shares
when the owner dies
which of the following actions is required when a firm receives cash in excess of 10k from one
customer in one business day? - ✔️✔️File a currency transaction report (CTR)
under rule 144a, an issuer of restricted stock is permitted to sell to which of the following investors?
- ✔️✔️qualified institutional buyers (QIBs)
a savings account at a bank is guaranteed by which of the following entities - ✔️✔️FDIC
an associated person who is not a registered rep is permitted to engage in what activity -
✔️✔️provide account opening forms to a new customer
under industry regulations, an initial purchase of 3k of common stock in a margin account requires a
cash deposit of - ✔️✔️2k (2k or 100% or purchase price, whatever is cheaper)
, which of the following investment risks is the greatest risk in a variable life insurance policy? -
✔️✔️market risk
a registered rep who wants to place a mutual fund advertisement must obtain written approval from
which of the following parties? - ✔️✔️a registered principal of the RR's firm
in the event of a stock split, who is required to maintain a record of the shareholders eligible to
receive the additional shares? - ✔️✔️transfer agent
which of the following outcomes are possible for the writer of a covered call option? - ✔️✔️profit
limited and loss limited
which of the following actions is required of a broker dealers aml program? - ✔️✔️designating an
aml compliance officer
at issue, which of the following debt securities mature in one year or less? - ✔️✔️money market
instruments
under federal res regulation T, a 90 day restriction is imposed when a customer opens and closes
which of the following positions? - ✔️✔️the same stock in a cash account without paying for the
stock in full
a company announces a tender offer to its shareholders with the intent to buy a max of 1m shares of
its outstanding stock at 10 dollars a share and sets no min number of shares to be purchased. an
investor wants to participate in this offer and tenders his 1k share position. at the close of the offer
period, only 900k shares have been tendered. how many will the company purchase - ✔️✔️1k
blue sky laws are regulated by which of the following entities - ✔️✔️state securities regulators
company abc announces a 20% stock dividend for its common shareholders. if a customer holds 1k
shares at 50 dollars, what is the new price and number of shares following the payment of the stock
div? - ✔️✔️1200 shares at 41.67
The term spread refers to the diff between the - ✔️✔️bid and asked prices
No- Load Mutual funds may have lower expense ratios than load mutual funds for which reason? -
✔️✔️No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for
what maximum period of time? - ✔️✔️13 months
At the time of issuance, which of the following securities normally has the longest period to
expiration? - ✔️✔️Warrants
Under the Securities act of 1933, registration is required for which of the following securities? -
✔️✔️American Depository receipts (ADRs)
the primary purpose of a syndicate desk in the context of an equity offering is to - ✔️✔️build an
order book and allocate the stock
what is the cost basis of an inherited mutual fund? - ✔️✔️the net asset value (NAV) of the shares
when the owner dies
which of the following actions is required when a firm receives cash in excess of 10k from one
customer in one business day? - ✔️✔️File a currency transaction report (CTR)
under rule 144a, an issuer of restricted stock is permitted to sell to which of the following investors?
- ✔️✔️qualified institutional buyers (QIBs)
a savings account at a bank is guaranteed by which of the following entities - ✔️✔️FDIC
an associated person who is not a registered rep is permitted to engage in what activity -
✔️✔️provide account opening forms to a new customer
under industry regulations, an initial purchase of 3k of common stock in a margin account requires a
cash deposit of - ✔️✔️2k (2k or 100% or purchase price, whatever is cheaper)
, which of the following investment risks is the greatest risk in a variable life insurance policy? -
✔️✔️market risk
a registered rep who wants to place a mutual fund advertisement must obtain written approval from
which of the following parties? - ✔️✔️a registered principal of the RR's firm
in the event of a stock split, who is required to maintain a record of the shareholders eligible to
receive the additional shares? - ✔️✔️transfer agent
which of the following outcomes are possible for the writer of a covered call option? - ✔️✔️profit
limited and loss limited
which of the following actions is required of a broker dealers aml program? - ✔️✔️designating an
aml compliance officer
at issue, which of the following debt securities mature in one year or less? - ✔️✔️money market
instruments
under federal res regulation T, a 90 day restriction is imposed when a customer opens and closes
which of the following positions? - ✔️✔️the same stock in a cash account without paying for the
stock in full
a company announces a tender offer to its shareholders with the intent to buy a max of 1m shares of
its outstanding stock at 10 dollars a share and sets no min number of shares to be purchased. an
investor wants to participate in this offer and tenders his 1k share position. at the close of the offer
period, only 900k shares have been tendered. how many will the company purchase - ✔️✔️1k
blue sky laws are regulated by which of the following entities - ✔️✔️state securities regulators
company abc announces a 20% stock dividend for its common shareholders. if a customer holds 1k
shares at 50 dollars, what is the new price and number of shares following the payment of the stock
div? - ✔️✔️1200 shares at 41.67
The term spread refers to the diff between the - ✔️✔️bid and asked prices
