SIE MIDTERM EXAM |QUESTIONS WITH CORRECT
VERIFIED ANSWERS |PRE-EVALUATED A+
Which of the following is NOT a characterization of the Securities Act of
1933?
A) Prospectus Act
B) Exchange Act
C) Truth in Securities Act
D) Paper Act - ANSWER-B) Exchange Act
All of the following are key differences between general obligation (GO)
bonds and revenue bonds EXCEPT
,A) the requirement for voter approval
B) the source of interest and principal payments
C) being subject to statutory debt limits
D) the type of issuer borrowing the funds - ANSWER-D) the type of issuer
borrowing the funds
A corporate bond ($1,000 PAR) purchased several years ago at $825
matures. At maturity, the bond holder will receive principal in what
amount?
A) An amount to be calculated based on the current yield at the time of
maturity
B) $175 representing the difference between the purchase price and PAR
C) $1,000 face value
D) $825 representing return of the purchase price - ANSWER-C) $1,000
face value
The business cycle is best characterized as
A) expansion, peak, contraction, trough
B) expansion, prosperity, depression
C) depression, recovery, prosperity, peak
D) inflation, deflation, depression - ANSWER-A) expansion, peak,
contraction, trough
, A final prospectus must include certain information. Which of the
following is NOT required to be included?
A) A statement by the SEC that the offering is neither approved or
disapproved
B) The underwriting contract and a list of all underwriters named in the
contract
C) A history of the business including any risks to purchasers that might
be unique to that business or industry
D) The intended use of the proceeds for such corporate actions including
expansion, mergers, or acquisitions - ANSWER-B) The underwriting
contract and a list of all underwriters named in the contract
Which of the following direct participation programs (DPPs) is most likely
to be associated with intangible costs and depletion allowances?
A) Equipment leasing program
B) Real estate existing property program
C) Oil and gas income program
D) Real estate raw land program - ANSWER-C) Oil and gas income
program
Underwriters have been taking indications of interest for shares of an
upcoming new issue. Indications of interest are
VERIFIED ANSWERS |PRE-EVALUATED A+
Which of the following is NOT a characterization of the Securities Act of
1933?
A) Prospectus Act
B) Exchange Act
C) Truth in Securities Act
D) Paper Act - ANSWER-B) Exchange Act
All of the following are key differences between general obligation (GO)
bonds and revenue bonds EXCEPT
,A) the requirement for voter approval
B) the source of interest and principal payments
C) being subject to statutory debt limits
D) the type of issuer borrowing the funds - ANSWER-D) the type of issuer
borrowing the funds
A corporate bond ($1,000 PAR) purchased several years ago at $825
matures. At maturity, the bond holder will receive principal in what
amount?
A) An amount to be calculated based on the current yield at the time of
maturity
B) $175 representing the difference between the purchase price and PAR
C) $1,000 face value
D) $825 representing return of the purchase price - ANSWER-C) $1,000
face value
The business cycle is best characterized as
A) expansion, peak, contraction, trough
B) expansion, prosperity, depression
C) depression, recovery, prosperity, peak
D) inflation, deflation, depression - ANSWER-A) expansion, peak,
contraction, trough
, A final prospectus must include certain information. Which of the
following is NOT required to be included?
A) A statement by the SEC that the offering is neither approved or
disapproved
B) The underwriting contract and a list of all underwriters named in the
contract
C) A history of the business including any risks to purchasers that might
be unique to that business or industry
D) The intended use of the proceeds for such corporate actions including
expansion, mergers, or acquisitions - ANSWER-B) The underwriting
contract and a list of all underwriters named in the contract
Which of the following direct participation programs (DPPs) is most likely
to be associated with intangible costs and depletion allowances?
A) Equipment leasing program
B) Real estate existing property program
C) Oil and gas income program
D) Real estate raw land program - ANSWER-C) Oil and gas income
program
Underwriters have been taking indications of interest for shares of an
upcoming new issue. Indications of interest are
