FINRA SIE exam final update Questions and
Answers |With 100% Verified Solutions |
Updated & Verified | 2025
Rights of Common stock Owners - ✔ANASWER✔-Right to
inspect records/books
Right to transfer ownership
Preemptive right
Divs
,right to assets
Vote
What percentage of stock Dividend would be considered a
stock split? - ✔ANASWER✔->25%
5:4 forward split with 300 shares @ 30$ - ✔ANASWER✔-
300 x 5/4
30 x ⅘
Preemptive Rights - ✔ANASWER✔-The right to keep
proportional ownership if more/less shares are issued
Preemptive Rights Security - ✔ANASWER✔-short term
security that gives owner option to buy certain # of shares
@ smaller price than market value
Preemptive Rights Security length - ✔ANASWER✔-
Typically 30-60 days
Items that don't require shareholder vote - ✔ANASWER✔-
Cash dividend
,Stock dividend
Preemptive right security distribution
Items that require shareholder vote - ✔ANASWER✔-Split
Preferred stock/bond creation
Statutory Voting - ✔ANASWER✔-1:1 PER POSITION
voting
Cumulative voting - ✔ANASWER✔-1:1 voting TOTAL
ADVANTAGE FOR SMALL INVESTOR
If Interest rates Rise: Preferred stock prices: -
✔ANASWER✔-fall
What are Warrants - ✔ANASWER✔-option to buy stock at
fixed price, usually above market price when the warrant is
issued
Attached to new stock/bonds as incentive
American Depository Receipts (ADR) - ✔ANASWER✔-
Allows trading of foreign securities in US
, Priced in US dollars
Has Exchange Rate Risk
Term bond issue - ✔ANASWER✔-when every bond
issued has same interest rate and maturity
Serial Bonds - ✔ANASWER✔-every bond issued has
DIFFERENT interest and maturity dates
Balloon maturity - ✔ANASWER✔-bond w/ largest principal
will mature the latest
Series bonds - ✔ANASWER✔-Same maturity
DIFFERENT dates
-construction project, theres a known date, but dont need
all the money at once
Reinvestment risk - ✔ANASWER✔-risk that interest rates
will fall over the period of a bond
what is a bond Point - ✔ANASWER✔-1 point = 1% of par
Answers |With 100% Verified Solutions |
Updated & Verified | 2025
Rights of Common stock Owners - ✔ANASWER✔-Right to
inspect records/books
Right to transfer ownership
Preemptive right
Divs
,right to assets
Vote
What percentage of stock Dividend would be considered a
stock split? - ✔ANASWER✔->25%
5:4 forward split with 300 shares @ 30$ - ✔ANASWER✔-
300 x 5/4
30 x ⅘
Preemptive Rights - ✔ANASWER✔-The right to keep
proportional ownership if more/less shares are issued
Preemptive Rights Security - ✔ANASWER✔-short term
security that gives owner option to buy certain # of shares
@ smaller price than market value
Preemptive Rights Security length - ✔ANASWER✔-
Typically 30-60 days
Items that don't require shareholder vote - ✔ANASWER✔-
Cash dividend
,Stock dividend
Preemptive right security distribution
Items that require shareholder vote - ✔ANASWER✔-Split
Preferred stock/bond creation
Statutory Voting - ✔ANASWER✔-1:1 PER POSITION
voting
Cumulative voting - ✔ANASWER✔-1:1 voting TOTAL
ADVANTAGE FOR SMALL INVESTOR
If Interest rates Rise: Preferred stock prices: -
✔ANASWER✔-fall
What are Warrants - ✔ANASWER✔-option to buy stock at
fixed price, usually above market price when the warrant is
issued
Attached to new stock/bonds as incentive
American Depository Receipts (ADR) - ✔ANASWER✔-
Allows trading of foreign securities in US
, Priced in US dollars
Has Exchange Rate Risk
Term bond issue - ✔ANASWER✔-when every bond
issued has same interest rate and maturity
Serial Bonds - ✔ANASWER✔-every bond issued has
DIFFERENT interest and maturity dates
Balloon maturity - ✔ANASWER✔-bond w/ largest principal
will mature the latest
Series bonds - ✔ANASWER✔-Same maturity
DIFFERENT dates
-construction project, theres a known date, but dont need
all the money at once
Reinvestment risk - ✔ANASWER✔-risk that interest rates
will fall over the period of a bond
what is a bond Point - ✔ANASWER✔-1 point = 1% of par
