SIE Exam-Questions with Correct Answers/ Verified/ 100% Pass
SEC Rule 147 provided - ✔️✔️an exemption from the 1933 Act for certain types of offerings
A covered person fails to complete the regulatory element when required - ✔️✔️this individual is
RESTRICTED from receiving compensation for performing any activities that require registration
Who can make a catch-up contribution to a traditional IRA? - ✔️✔️People over 50!
What is regular way settlement when trading listed options contracts? - ✔️✔️T+1.... T+2 when it is
equity options
Which of the following activities would have the smallest impact on a corporation's capital
structure? - ✔️✔️Issuance of listed options
Which of the following statements regarding a shelf registration is most accurate? - ✔️✔️A shelf
registration is valid for 3 years and ONLY on follow-on offerings
ABC Corp. is looking to raise capital overseas and avoid SEC registration exempt transaction to use -
✔️✔️Regulation S
When must a market maker post its firm, 2-sided quotes? - ✔️✔️9:30-4pm EST
A market maker who fails to honor a firm quote has engaged in - ✔️✔️BACKING AWAY
If a customer claim exceeds the SIPC coverage limits - ✔️✔️the customer becomes a general
creditor of the BD
A client is unhappy with investment options at his current IRA provider and wants to move money...
- ✔️✔️He should engage in a rollover, which must be completed within 60 days to avoid potential
tax liabilities
An annuitant may pay a surrender charge... - ✔️✔️when selling an annuity
, 1035 Exchanges enable investors to - ✔️✔️make a tax-free transfer of one annuity contract for
another
Which type of investment company product issues a single class of shares only and trades on the
market at a discount or premium to its NAV? - ✔️✔️Closed-end company
A company's stock is listed on the NYSE. Which of the following could result in the company being
delisted? - ✔️✔️bankruptcy, low trading volume, declines in public interest, does not mail out
proxy statements
A municipal note that is typically funded by non-tax revenue is a - ✔️✔️RAN (revenue anticipation
note)
When a redemption of mutual fund shares is requested, the fund must redeem shares within -
✔️✔️7 calendar days
A customer with an income objective believes that interest rates are likely to fall over the next 10
years. Of the following, which two are most suitable for this customer? - ✔️✔️A 10-year non-
callable bond, A long term bond with a put feature after 5 years
Shares offered in a public equity offering that provide proceeds directly to selling shareholders refer
to - ✔️✔️secondary shares
An investor would like to invest a lump sum inheritance she received for a three month period and
will use funds payment on a home purchase at that time. All of the following may be appropriate
BUT - ✔️✔️An auction rates security
When a decision on a dispute between a representative and a member firm is reached through an
arbitration proceeding, the decision - ✔️✔️is final and binding on all parties
Upon signing a loan consent agreement, a customer of a broker-dealer is - ✔️✔️providing consent
for their securities to be used to facilitate short sales
Funding for the SIPC comes mostly from what source? - ✔️✔️Assessments against broker-dealer's
gross revenues from their securities business
SEC Rule 147 provided - ✔️✔️an exemption from the 1933 Act for certain types of offerings
A covered person fails to complete the regulatory element when required - ✔️✔️this individual is
RESTRICTED from receiving compensation for performing any activities that require registration
Who can make a catch-up contribution to a traditional IRA? - ✔️✔️People over 50!
What is regular way settlement when trading listed options contracts? - ✔️✔️T+1.... T+2 when it is
equity options
Which of the following activities would have the smallest impact on a corporation's capital
structure? - ✔️✔️Issuance of listed options
Which of the following statements regarding a shelf registration is most accurate? - ✔️✔️A shelf
registration is valid for 3 years and ONLY on follow-on offerings
ABC Corp. is looking to raise capital overseas and avoid SEC registration exempt transaction to use -
✔️✔️Regulation S
When must a market maker post its firm, 2-sided quotes? - ✔️✔️9:30-4pm EST
A market maker who fails to honor a firm quote has engaged in - ✔️✔️BACKING AWAY
If a customer claim exceeds the SIPC coverage limits - ✔️✔️the customer becomes a general
creditor of the BD
A client is unhappy with investment options at his current IRA provider and wants to move money...
- ✔️✔️He should engage in a rollover, which must be completed within 60 days to avoid potential
tax liabilities
An annuitant may pay a surrender charge... - ✔️✔️when selling an annuity
, 1035 Exchanges enable investors to - ✔️✔️make a tax-free transfer of one annuity contract for
another
Which type of investment company product issues a single class of shares only and trades on the
market at a discount or premium to its NAV? - ✔️✔️Closed-end company
A company's stock is listed on the NYSE. Which of the following could result in the company being
delisted? - ✔️✔️bankruptcy, low trading volume, declines in public interest, does not mail out
proxy statements
A municipal note that is typically funded by non-tax revenue is a - ✔️✔️RAN (revenue anticipation
note)
When a redemption of mutual fund shares is requested, the fund must redeem shares within -
✔️✔️7 calendar days
A customer with an income objective believes that interest rates are likely to fall over the next 10
years. Of the following, which two are most suitable for this customer? - ✔️✔️A 10-year non-
callable bond, A long term bond with a put feature after 5 years
Shares offered in a public equity offering that provide proceeds directly to selling shareholders refer
to - ✔️✔️secondary shares
An investor would like to invest a lump sum inheritance she received for a three month period and
will use funds payment on a home purchase at that time. All of the following may be appropriate
BUT - ✔️✔️An auction rates security
When a decision on a dispute between a representative and a member firm is reached through an
arbitration proceeding, the decision - ✔️✔️is final and binding on all parties
Upon signing a loan consent agreement, a customer of a broker-dealer is - ✔️✔️providing consent
for their securities to be used to facilitate short sales
Funding for the SIPC comes mostly from what source? - ✔️✔️Assessments against broker-dealer's
gross revenues from their securities business
