SIE Exam-Questions with Correct Answers/ Verified/ 100% Pass
growth companies typically do not pay a _____________ - ✔️✔️dividend
statutory voting - ✔️✔️allows stockholder only the amount of votes they have towards each BOD
position.
Ex: An investor has 100 shares, 3 BOD position open. He has 300 votes, 100 for each position
cumulative voting - ✔️✔️shareholder can combine votes into one BOD position.
Ex: An investor has 100 shares, 3 BOD position open. He has 300 votes, these 300 can be applied to
any position.
authorized shares - ✔️✔️how many shares can be offered to investors
Treasury stock: - ✔️✔️shares repurchased from the market(buybacks)
pre-emptive rights - ✔️✔️gives rights to buy newly issued shares before they are public
Warrant
Fixed or variable
Time or intrinisic
5 years or 90 days - ✔️✔️Fixed
No Intrinsic at issuance
Time value
5+ years
right
Fixed or variable
Time or intrinisic
5 years or 90 days - ✔️✔️fixed
, intrinsic @ issuance
90 or less days
trading and valusing stocks do/do not affect a warrants price - ✔️✔️do not
forward stock split - ✔️✔️stock split if the price is believed to be too high
reverse stock split - ✔️✔️stock split if price is believed to be too low
primary market: - ✔️✔️issuers offer securities to investors in return for capital
institutional investor - ✔️✔️a single entity investing on behalf of a group of clients(ex: hedge fund,
mutual funds, banks).
Primary distribution: - ✔️✔️a security is sold & the issuer receives the proceeds
Secondary distribution - ✔️✔️a security is sold, but a party other then the issues receives the sale
proceeds
second market: - ✔️✔️unlisted stocks that are traded OTC(Ex: Penny Stocks)
broker dealers - ✔️✔️help customers buy & sell securities
Intro Broker Dealers - ✔️✔️Smaller, client focused, do not own the securities
clearing broker - ✔️✔️maintain custpdy, process orders, facilitate trades for custpmers
clearing house: - ✔️✔️responsible in making sure that trades are properly finalized
regular way settlement: - ✔️✔️t+1 days
growth companies typically do not pay a _____________ - ✔️✔️dividend
statutory voting - ✔️✔️allows stockholder only the amount of votes they have towards each BOD
position.
Ex: An investor has 100 shares, 3 BOD position open. He has 300 votes, 100 for each position
cumulative voting - ✔️✔️shareholder can combine votes into one BOD position.
Ex: An investor has 100 shares, 3 BOD position open. He has 300 votes, these 300 can be applied to
any position.
authorized shares - ✔️✔️how many shares can be offered to investors
Treasury stock: - ✔️✔️shares repurchased from the market(buybacks)
pre-emptive rights - ✔️✔️gives rights to buy newly issued shares before they are public
Warrant
Fixed or variable
Time or intrinisic
5 years or 90 days - ✔️✔️Fixed
No Intrinsic at issuance
Time value
5+ years
right
Fixed or variable
Time or intrinisic
5 years or 90 days - ✔️✔️fixed
, intrinsic @ issuance
90 or less days
trading and valusing stocks do/do not affect a warrants price - ✔️✔️do not
forward stock split - ✔️✔️stock split if the price is believed to be too high
reverse stock split - ✔️✔️stock split if price is believed to be too low
primary market: - ✔️✔️issuers offer securities to investors in return for capital
institutional investor - ✔️✔️a single entity investing on behalf of a group of clients(ex: hedge fund,
mutual funds, banks).
Primary distribution: - ✔️✔️a security is sold & the issuer receives the proceeds
Secondary distribution - ✔️✔️a security is sold, but a party other then the issues receives the sale
proceeds
second market: - ✔️✔️unlisted stocks that are traded OTC(Ex: Penny Stocks)
broker dealers - ✔️✔️help customers buy & sell securities
Intro Broker Dealers - ✔️✔️Smaller, client focused, do not own the securities
clearing broker - ✔️✔️maintain custpdy, process orders, facilitate trades for custpmers
clearing house: - ✔️✔️responsible in making sure that trades are properly finalized
regular way settlement: - ✔️✔️t+1 days
