SIE Mastery Exam UPDATED Questions
and CORRECT Answers
The orders that are executed in a rising market are - CORRECT ANSWER - "OSLOBS" -
Open Sell Limits and Open Buy Stops
The order that are executed if the market drops are - CORRECT ANSWER - "OBLOSS" -
Open Buy Limits and Open Sell Stops
ABC 8% $100 par preferred is trading at $120 in the market. The current yield is: - CORRECT
ANSWER - 6.7%
formula Current yield = annual income/ Market price
current yield= ($8/$120)x 100
Which debt instrument is used to finance imports and exports - CORRECT ANSWER -
Banker's Acceptances
are a money market instrument used to finance imports and exports with "Third World" countries
when a corporation splits its stock, which statement is TRUE? - CORRECT ANSWER -
an existing shareholder's proportionate ownership in the corporation remains the same
and individual investors are more likely to buy the stock
which type of oil and gas program is the most conservation? - CORRECT ANSWER -
Income(Production)
,an income or production program buys an existing oil well with proven reserves, with the
intention of stripping the remaining oil from the ground, partially sheltered by the depletion
deduction.
This program has the lowest level if risk and potential return
Exploratory oil and gas program - CORRECT ANSWER - They have the highest level of
risk; and the highest potential return
program drill in virgin, uncharted areas
developmental program - CORRECT ANSWER - The level of risk and potential return is
lower than that for an exploratory program
program drill near existing fields, since there is oil nearby, the chances of striking oil are better,
and so the mineral rights cost is much higher than an exploratory program.
Combination program - CORRECT ANSWER - this program invests in all 3 types and,
thus, would be riskier than a simple production (income) program
which terms apply to mutual fund shares? - CORRECT ANSWER - redeemable with
continuous issuance
mutual fund shared DO NOT trade - they are not negotiable.
The shares are issued by the fund when a purchase is made and are redeemed by the fund when
the shares are sold.
The fund continuously issues and redeems its shares
, Comparing bonds and preferred stock - CORRECT ANSWER - Both bonds and preferred
stock are "Senior" securities over common
Payments to bondholders are legal obligation of the issuer. They are not a discretionary decision
on the part of the BOD, as is the decision to pay a dividend to preferred and common shareholder
Which statement is TRUE regarding T-bills - CORRECT ANSWER - No physical
certificates are issued
The U.S Government issues T-Bills in book entry form only
NO physical certificates are issued T-bills are short term instruments that are issued at a discount
and mature at par
An oil and gas program that provides high initial deductions and low mineral rights cost would
be a(n): - CORRECT ANSWER - exploratory program "wildcat" wells are drilled in
unproven areas
which is not a good delivery foe a 300 share trade of stock? - CORRECT ANSWER - ten
30 share certificates
To be good delivery, certificates must be in round multiples of 100 shared on one certificate or
must be delivered in certificates that add up to 100 shares units
In January 20XX a customer buys 100 shares of ABC stock at $30 per share and pays $2
commission per share. The customer receives $1 in cash dividends during the years. The
customer's cost basis in the stock is? - CORRECT ANSWER - Cost basis: for tax
purposes, the original price paid for a security, inclusive of commissions or mark-ups
$30+$2 commission = $32 share
and CORRECT Answers
The orders that are executed in a rising market are - CORRECT ANSWER - "OSLOBS" -
Open Sell Limits and Open Buy Stops
The order that are executed if the market drops are - CORRECT ANSWER - "OBLOSS" -
Open Buy Limits and Open Sell Stops
ABC 8% $100 par preferred is trading at $120 in the market. The current yield is: - CORRECT
ANSWER - 6.7%
formula Current yield = annual income/ Market price
current yield= ($8/$120)x 100
Which debt instrument is used to finance imports and exports - CORRECT ANSWER -
Banker's Acceptances
are a money market instrument used to finance imports and exports with "Third World" countries
when a corporation splits its stock, which statement is TRUE? - CORRECT ANSWER -
an existing shareholder's proportionate ownership in the corporation remains the same
and individual investors are more likely to buy the stock
which type of oil and gas program is the most conservation? - CORRECT ANSWER -
Income(Production)
,an income or production program buys an existing oil well with proven reserves, with the
intention of stripping the remaining oil from the ground, partially sheltered by the depletion
deduction.
This program has the lowest level if risk and potential return
Exploratory oil and gas program - CORRECT ANSWER - They have the highest level of
risk; and the highest potential return
program drill in virgin, uncharted areas
developmental program - CORRECT ANSWER - The level of risk and potential return is
lower than that for an exploratory program
program drill near existing fields, since there is oil nearby, the chances of striking oil are better,
and so the mineral rights cost is much higher than an exploratory program.
Combination program - CORRECT ANSWER - this program invests in all 3 types and,
thus, would be riskier than a simple production (income) program
which terms apply to mutual fund shares? - CORRECT ANSWER - redeemable with
continuous issuance
mutual fund shared DO NOT trade - they are not negotiable.
The shares are issued by the fund when a purchase is made and are redeemed by the fund when
the shares are sold.
The fund continuously issues and redeems its shares
, Comparing bonds and preferred stock - CORRECT ANSWER - Both bonds and preferred
stock are "Senior" securities over common
Payments to bondholders are legal obligation of the issuer. They are not a discretionary decision
on the part of the BOD, as is the decision to pay a dividend to preferred and common shareholder
Which statement is TRUE regarding T-bills - CORRECT ANSWER - No physical
certificates are issued
The U.S Government issues T-Bills in book entry form only
NO physical certificates are issued T-bills are short term instruments that are issued at a discount
and mature at par
An oil and gas program that provides high initial deductions and low mineral rights cost would
be a(n): - CORRECT ANSWER - exploratory program "wildcat" wells are drilled in
unproven areas
which is not a good delivery foe a 300 share trade of stock? - CORRECT ANSWER - ten
30 share certificates
To be good delivery, certificates must be in round multiples of 100 shared on one certificate or
must be delivered in certificates that add up to 100 shares units
In January 20XX a customer buys 100 shares of ABC stock at $30 per share and pays $2
commission per share. The customer receives $1 in cash dividends during the years. The
customer's cost basis in the stock is? - CORRECT ANSWER - Cost basis: for tax
purposes, the original price paid for a security, inclusive of commissions or mark-ups
$30+$2 commission = $32 share
