SIE EXAM PRACTICE QUESTIONS AND ANSWERS (100% CORRECT)

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SIE EXAM PRACTICE QUESTIONS AND
ANSWERS (100% CORRECT)


What right do common share holders not have?

A. Right to vote

B. inspect books & Records

C. Preemptive rights

D. Dividends - Answer✔️✔️-D. Dividends common share holders also do not make
decisions about management

preemptive right - Answer✔️✔️-The shareholder has the right to buy common stock
before anyone else

corporate dissolution - Answer✔️✔️-common shareholders are last in line in the case
of the company going bankrupt.

_____________ is a long term option to buy a stock at a fixed price. Typically
attached to the sale of a new stock or bond issue as a "sweetener" to make the issue
more attractive

A.Callable

B. Warrent

C. ADR




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D. Right - Answer✔️✔️-B. Warrent

____________ Is a short term option to buy stock at a discounted from the current
market price

A. Callable

B. Warrent

C. ADR

D. Right - Answer✔️✔️-D. Right

What kind of bonds are usually serial bonds?

A. Short Term

B. Municipal bonds issues

C. Corporate Equipment trust Certificates

D. B&C - Answer✔️✔️-D.

Which is higher in the bond grading system?

A. A-1

B. A-2

C. A-3

D. B-1 - Answer✔️✔️-A. A-1

which voting right is in the advantage of the small shareholders?

A.

B.


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C. Cumulative

D. - Answer✔️✔️-C. Cumulative

Reason: Small shareholders can pool their votes & cast them for the same person
who represents their interest.

Which is not true for preferred stocks

A. Get dividends before common stock holders

B. Dividends are NOT guaranteed

C. Dividends are fixed

D. Dividends are guaranteed - Answer✔️✔️-B. Dividends are NOT guaranteed

Bonds trading at a discount (high to low)

A. Yield to call, Yield to maturity, Coupon Rate, current yield

B. Yield to maturity, Yield to call, Coupon Rate, current yield

C. Yield to call, Yield to maturity, current yield, Coupon Rate

D. Coupon rate, current yield, yield to maturity, yield to call - Answer✔️✔️-C. Yield
to call, Yield to maturity, current yield, Coupon Rate

Bonds trading at a premium (high to low)

A. Yield to call, Yield to maturity, Coupon Rate, current yield

B. Yield to maturity, Yield to call, Coupon Rate, current yield

C. Yield to call, Yield to maturity, current yield, Coupon Rate




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D. Coupon rate, current yield, yield to maturity, yield to call - Answer✔️✔️-D.
Coupon rate, current yield, yield to maturity, yield to call

________ Are Zero-coupon bonds backed by the US Government.

A. Municipal bonds

B. Corporate bonds

C. TIPS

D. STRIPS - Answer✔️✔️-________ Are Zero-coupon bonds backed by the US
Government.

Used to buy or build land

A. Mortgage Bond

B. Collateral Trust Bond

C. Equipment Trust Certificate

D. Commercial paper - Answer✔️✔️-A. Mortgage Bond

Backed by the security held or owned by a corporation (owned by a holding
company)

A. Mortgage Bond

B. Collateral Trust Bond

C. Equipment Trust Certificate

D. Commercial paper - Answer✔️✔️-B. Collateral Trust Bond

Is Issued by common carriers such as Airlines, paid when their is a liquidation




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