2025-2026 SIE EXAM WITH ACCURATE SOLUTIONS
100% CORRECT
No- Load Mutual funds may have lower expense ratios than load mutual funds for what
reason? - ANSWER No-load funds are not allowed to charge a 12b-1 fee in excess of 25
basis points
Under what circumstances would a customer's letter of intent on a mutual fund
purchase be valid but for no longer than what time period? - ANSWER 13 months
Which of the following securities typically has the longest period to expiration at the time
of issuance? - ANSWER Warrants
Which of the following securities must be registered under the Securities act of 1933? -
ANSWER American Depository receipts (ADRs)
In regards to an equity offering, the main function of the syndicate desk is to - ANSWER
build an order book and allocate the stock
what is the basis of an inherited mutual fund? - ANSWER the NAV of the shares at the
time of the owner's death
which of the following activities must a firm file when its business receives a cash
receipt of more than $10,000 from one customer in one business day? - ANSWER file a
currency transaction report (CTR)
Under Rule 144A an issuer of restricted stock is allowed to sell to which of the following
investors? - ANSWER Qualified Institutional Buyers (QIBs)
, A savings account at a bank is insured by which of the following organizations -
ANSWER FDIC
An associated person who is not a registered rep is allowed to do what- ANSWER
Provide account opening forms to a new customer
under industry regulations, what is the minimum cash deposit required for an initial
purchase of 3k of common stock in a margin account? - ANSWER 2k (2k or 100% or
purchase price, whichever is less)
of the following investment risks, which one presents the greatest risk in a variable life
insurance policy? - ANSWER market risk
A registered rep who wishes to advertise a mutual fund must obtain written approval
from which of the following? - ANSWER a registered principal of the RR's firm
If there is a stock split, who should maintain a record of those shareholders entitled to
additional shares? - ANSWER transfer agent
which of the following is a possible outcome for the writer of a covered call option? -
ANSWER limited profit and limited loss
which of the following must a broker dealers aml program do? - ANSWER designate an
aml compliance officer
at issuance, which of the following debt securities come due in one year or less? -
ANSWER money market instruments
Under federal Reg T, a 90 day restriction is placed when a customer opens and closes
which of the following positions? - ANSWER the same stock in a cash account without
paying for the stock in full
100% CORRECT
No- Load Mutual funds may have lower expense ratios than load mutual funds for what
reason? - ANSWER No-load funds are not allowed to charge a 12b-1 fee in excess of 25
basis points
Under what circumstances would a customer's letter of intent on a mutual fund
purchase be valid but for no longer than what time period? - ANSWER 13 months
Which of the following securities typically has the longest period to expiration at the time
of issuance? - ANSWER Warrants
Which of the following securities must be registered under the Securities act of 1933? -
ANSWER American Depository receipts (ADRs)
In regards to an equity offering, the main function of the syndicate desk is to - ANSWER
build an order book and allocate the stock
what is the basis of an inherited mutual fund? - ANSWER the NAV of the shares at the
time of the owner's death
which of the following activities must a firm file when its business receives a cash
receipt of more than $10,000 from one customer in one business day? - ANSWER file a
currency transaction report (CTR)
Under Rule 144A an issuer of restricted stock is allowed to sell to which of the following
investors? - ANSWER Qualified Institutional Buyers (QIBs)
, A savings account at a bank is insured by which of the following organizations -
ANSWER FDIC
An associated person who is not a registered rep is allowed to do what- ANSWER
Provide account opening forms to a new customer
under industry regulations, what is the minimum cash deposit required for an initial
purchase of 3k of common stock in a margin account? - ANSWER 2k (2k or 100% or
purchase price, whichever is less)
of the following investment risks, which one presents the greatest risk in a variable life
insurance policy? - ANSWER market risk
A registered rep who wishes to advertise a mutual fund must obtain written approval
from which of the following? - ANSWER a registered principal of the RR's firm
If there is a stock split, who should maintain a record of those shareholders entitled to
additional shares? - ANSWER transfer agent
which of the following is a possible outcome for the writer of a covered call option? -
ANSWER limited profit and limited loss
which of the following must a broker dealers aml program do? - ANSWER designate an
aml compliance officer
at issuance, which of the following debt securities come due in one year or less? -
ANSWER money market instruments
Under federal Reg T, a 90 day restriction is placed when a customer opens and closes
which of the following positions? - ANSWER the same stock in a cash account without
paying for the stock in full
