SIE exam unit 1(100% Correct!!)
The Federal regulatory body that governs the securities industry is the? - ANSWERSecurities and
Exchange commission
A fully disclosed broker-dealer - ANSWERIs an intermediary between the buy and sell sides of a
transaction
An intermediary between the buy and sell sides of a transaction is known as a - ANSWERClearing
agent
For the depository Trust and clearing Company (DTCC) all of the following are true EXCEPT -
ANSWERIt acts as a retail bank servicing savings and checking accounts
Your broker-dealer acts as a prime broker for an institutional account. in this arrangement, your
broker-dealer is likely to be providing which of the following services? - ANSWERClearing and
transactions settlement services for executing brokers
an individual or institution willing to hold securities position in its proprietary account for the
purpose of providing liquidity to the marketplace is a - ANSWERMarket Maker
An entity such as a corporation wishing to offer securities for sale to the public for the purpose of
raising capital is - ANSWERAn Issuer
A nonprofit organized requiring members to pay assessments into a general insurance fund used to
meet customer claims in the event of a broker-dealer bankruptcy is - ANSWERSIPC
If an investment company bought stock directly from a bank bypassing any intermediary or broker,
this trade took place in which of the following markets - ANSWERFourth
Which of the following statements regarding the third market is TRUE? - ANSWERIt is composed of
listed securities traded OTC
The Federal regulatory body that governs the securities industry is the? - ANSWERSecurities and
Exchange commission
A fully disclosed broker-dealer - ANSWERIs an intermediary between the buy and sell sides of a
transaction
An intermediary between the buy and sell sides of a transaction is known as a - ANSWERClearing
agent
For the depository Trust and clearing Company (DTCC) all of the following are true EXCEPT -
ANSWERIt acts as a retail bank servicing savings and checking accounts
Your broker-dealer acts as a prime broker for an institutional account. in this arrangement, your
broker-dealer is likely to be providing which of the following services? - ANSWERClearing and
transactions settlement services for executing brokers
an individual or institution willing to hold securities position in its proprietary account for the
purpose of providing liquidity to the marketplace is a - ANSWERMarket Maker
An entity such as a corporation wishing to offer securities for sale to the public for the purpose of
raising capital is - ANSWERAn Issuer
A nonprofit organized requiring members to pay assessments into a general insurance fund used to
meet customer claims in the event of a broker-dealer bankruptcy is - ANSWERSIPC
If an investment company bought stock directly from a bank bypassing any intermediary or broker,
this trade took place in which of the following markets - ANSWERFourth
Which of the following statements regarding the third market is TRUE? - ANSWERIt is composed of
listed securities traded OTC
