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COMPREHENSIVE SIE PRACTICE
EXAM BRAND NEW ACTUAL EXAM
WITH ANSWERS.
A company has $100,000 in annual earnings with $75,000 in
expenses. The company owes preferred shareholders $7,000,
and it has 10,000 shares issued. Which of the following
statements is true of the value of each share?
Share values for non-preferred shareholders will be set at $1.80.
A 27 year old investor contributes $15,000 into their 401k in
2021. The investor earns a gain of 7% on their 401k in the
same year. Assuming the investor does not withdraw any
funds, what amount in their 401k will they be taxed on?
$0
Which of the following terms refers to a diversified security
often organized as a separate company?
Mutual fund
An investment manager makes many large rapid trades of
Company LMN over a short period. Once the stock price is
elevated as others jump in due to perceived higher volume,
the investment manager shorts the stock as they anticipate
the price will soon fall. Which type of market manipulation is
this?
Wash trading
An investment manager makes an excessive number of
trades for a client with the intention of increasing trade
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commissions. What type of market manipulation, if any, is
this an example of?
Churning
Which of the following is NOT a role of an investment
banker?
An investment banker establishes the appropriate price of the
stock or bond in the secondary markets.
An investment manager is exploring different investments for
a client. He compares the investment to the customer's
profile and determines that it aligns with the customer's
objectives and would support their portfolio. Which of the
following suitability requirements has this investment
manager just demonstrated?
Customer-specific obligation
A financial advisor is suggesting that a client buy 50 shares
of a new stock in a stable industry that is predicted to
increase in appeal over the next five years because of recent
advancements. The advisor gives such advice to several
clients because of the opportunity. The advisor is offering
such advice based on:
reasonable-basis obligation
Which of the following market participants have a fiduciary
responsibility to their customers?
Municipal Advisors
Which of the following takes money out of the money
supply?
Increasing the reserve requirements
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Which type of securities offering allows existing
shareholders to purchase additional shares in the company,
typically in proportion to their current holdings?
Stock rights offering
A warrant gives the holder a right to purchase equity shares
at a set price from the issuer
Which of the following is considered zero-coupon securities?
Treasury bills
Which of the following is considered a Government
Sponsored Enterprise?
Federal National Mortgage Association (Fannie Mae)
In an options transaction, the premium must be paid to the
_________ by ___________.
option writer, settlement date
Which of the following best describes Letter of Intent:
A written indication provided by the investor to purchase a set
number of mutual fund shares in the future.
To avoid penalties, assets held inside a Coverdell ESA must
be used by the beneficiary's:
30th birthday
A hybrid REIT combines which of the following two types of
REITs?
Mortgage and Healthcare
The risk that the issuer will require the bond owner to sell the
bond back to the issuer at a specific date and price is
referred to as:
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Call risk
ABC equity security recently traded as follows:
100 shares @ $50.00
100 shares @ $50.04
200 shares @ $50.10
The current NBBO is $50.09 - $50.12. What is the bid-ask
spread?
$.03
Jane Investor has decided to sell short ABC stock. She sells
100 shares short at $78. The price of the stock decreases the
next day to $75 when she buys the stock. Jane Investor has
a(n) __________.
realized gain
ABC Company has declared a 1-3 reverse stock split. You
currently own 300 shares before the split, and the stock is
worth $5. After the reverse stock split, what is your total
position in ABC worth?
$1,500
Under Reg T, the amount of margin that must be in the
account when the account is first established is:
50%
Which of the following is an example of the Integration stage
of money laundering?
Buying a business
Which of the following is required on a customer
confirmation?
COMPREHENSIVE SIE PRACTICE
EXAM BRAND NEW ACTUAL EXAM
WITH ANSWERS.
A company has $100,000 in annual earnings with $75,000 in
expenses. The company owes preferred shareholders $7,000,
and it has 10,000 shares issued. Which of the following
statements is true of the value of each share?
Share values for non-preferred shareholders will be set at $1.80.
A 27 year old investor contributes $15,000 into their 401k in
2021. The investor earns a gain of 7% on their 401k in the
same year. Assuming the investor does not withdraw any
funds, what amount in their 401k will they be taxed on?
$0
Which of the following terms refers to a diversified security
often organized as a separate company?
Mutual fund
An investment manager makes many large rapid trades of
Company LMN over a short period. Once the stock price is
elevated as others jump in due to perceived higher volume,
the investment manager shorts the stock as they anticipate
the price will soon fall. Which type of market manipulation is
this?
Wash trading
An investment manager makes an excessive number of
trades for a client with the intention of increasing trade
, Page | 2
commissions. What type of market manipulation, if any, is
this an example of?
Churning
Which of the following is NOT a role of an investment
banker?
An investment banker establishes the appropriate price of the
stock or bond in the secondary markets.
An investment manager is exploring different investments for
a client. He compares the investment to the customer's
profile and determines that it aligns with the customer's
objectives and would support their portfolio. Which of the
following suitability requirements has this investment
manager just demonstrated?
Customer-specific obligation
A financial advisor is suggesting that a client buy 50 shares
of a new stock in a stable industry that is predicted to
increase in appeal over the next five years because of recent
advancements. The advisor gives such advice to several
clients because of the opportunity. The advisor is offering
such advice based on:
reasonable-basis obligation
Which of the following market participants have a fiduciary
responsibility to their customers?
Municipal Advisors
Which of the following takes money out of the money
supply?
Increasing the reserve requirements
, Page | 3
Which type of securities offering allows existing
shareholders to purchase additional shares in the company,
typically in proportion to their current holdings?
Stock rights offering
A warrant gives the holder a right to purchase equity shares
at a set price from the issuer
Which of the following is considered zero-coupon securities?
Treasury bills
Which of the following is considered a Government
Sponsored Enterprise?
Federal National Mortgage Association (Fannie Mae)
In an options transaction, the premium must be paid to the
_________ by ___________.
option writer, settlement date
Which of the following best describes Letter of Intent:
A written indication provided by the investor to purchase a set
number of mutual fund shares in the future.
To avoid penalties, assets held inside a Coverdell ESA must
be used by the beneficiary's:
30th birthday
A hybrid REIT combines which of the following two types of
REITs?
Mortgage and Healthcare
The risk that the issuer will require the bond owner to sell the
bond back to the issuer at a specific date and price is
referred to as:
, Page | 4
Call risk
ABC equity security recently traded as follows:
100 shares @ $50.00
100 shares @ $50.04
200 shares @ $50.10
The current NBBO is $50.09 - $50.12. What is the bid-ask
spread?
$.03
Jane Investor has decided to sell short ABC stock. She sells
100 shares short at $78. The price of the stock decreases the
next day to $75 when she buys the stock. Jane Investor has
a(n) __________.
realized gain
ABC Company has declared a 1-3 reverse stock split. You
currently own 300 shares before the split, and the stock is
worth $5. After the reverse stock split, what is your total
position in ABC worth?
$1,500
Under Reg T, the amount of margin that must be in the
account when the account is first established is:
50%
Which of the following is an example of the Integration stage
of money laundering?
Buying a business
Which of the following is required on a customer
confirmation?
