SIE Exam questions with answers
|\ |\ |\ |\
What is cost basis?
|\ |\ |\
A
The original purchase price plus any transaction costs
|\ |\ |\ |\ |\ |\ |\
B
The transaction charges affiliated with the purchase of any
|\ |\ |\ |\ |\ |\ |\ |\ |\
security
C
The net after-tax purchase price per share of common stock
|\ |\ |\ |\ |\ |\ |\ |\ |\
D
The amount of any gain or loss if a different transaction had
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
occurred - CORRECT ANSWERS ✔✔A. The original purchase price
|\ |\ |\ |\ |\ |\ |\ |\ |\
plus any transaction costs
|\ |\ |\
Which of the following corporate securities carries the greatest
|\ |\ |\ |\ |\ |\ |\ |\ |\
risk to the investor?
|\ |\ |\
A
Commercial paper |\
B
Common stock |\
C
Preferred stock |\
,D
Bonds - CORRECT ANSWERS ✔✔B. Common Stock
|\ |\ |\ |\ |\ |\
Which of the following is a characteristic of a frozen account?
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
A
The frozen status lasts for 90 days
|\ |\ |\ |\ |\ |\
B
Purchases may not be made in the account
|\ |\ |\ |\ |\ |\ |\
C
Frozen account status covers all accounts at the firm
|\ |\ |\ |\ |\ |\ |\ |\
D
Only margin accounts can have a frozen status - CORRECT
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ANSWERS ✔✔A. The frozen status lasts for 90 days
|\ |\ |\ |\ |\ |\ |\ |\
ABC insurance company has issued a variable annuity contract.
|\ |\ |\ |\ |\ |\ |\ |\ |\
The contract offers numerous investment options, including
|\ |\ |\ |\ |\ |\ |\
subaccounts, which hold bonds, domestic equities, and foreign
|\ |\ |\ |\ |\ |\ |\ |\
securities. Which of the following risks does ABC incur when
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
issuing this contract?
|\ |\
A
Mortality and currency risk |\ |\ |\
B
Mortality and expense risk |\ |\ |\
C
Currency and expense risk |\ |\ |\
,D
Inflation and interest-rate risk - CORRECT ANSWERS ✔✔B
|\ |\ |\ |\ |\ |\ |\
Mortality and expense risk |\ |\ |\
Which of the following is required to be maintained for three
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
years?
A
Currency Transaction Reports |\ |\
B
Instant messages |\
C
Customer account records |\ |\
D
Customer complaints - CORRECT ANSWERS ✔✔B
|\ |\ |\ |\ |\
Instant messages |\
When is the final due diligence meeting held?
|\ |\ |\ |\ |\ |\ |\
A
Just prior to the end of the cooling-off period
|\ |\ |\ |\ |\ |\ |\ |\
B
At the start of the cooling-off period
|\ |\ |\ |\ |\ |\
C
, After the IPO |\ |\
D
Prior to submitting the registration statement to the SEC -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔A |\ |\
Just prior to the end of the cooling-off period
|\ |\ |\ |\ |\ |\ |\ |\
Private REITs are all the following, except:
|\ |\ |\ |\ |\ |\
A
Registered with the SEC |\ |\ |\
B
Have no disclosure requirements
|\ |\ |\
C
Only suitable for wealthy investors
|\ |\ |\ |\
D
Usually offered as private placements - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
Registered with the SEC |\ |\ |\
Which of the following statements is true regarding secondary
|\ |\ |\ |\ |\ |\ |\ |\ |\
offerings?
A
Sale proceeds go to the issuer
|\ |\ |\ |\ |\
B
Shares are sold through an underwriter
|\ |\ |\ |\ |\
|\ |\ |\ |\
What is cost basis?
|\ |\ |\
A
The original purchase price plus any transaction costs
|\ |\ |\ |\ |\ |\ |\
B
The transaction charges affiliated with the purchase of any
|\ |\ |\ |\ |\ |\ |\ |\ |\
security
C
The net after-tax purchase price per share of common stock
|\ |\ |\ |\ |\ |\ |\ |\ |\
D
The amount of any gain or loss if a different transaction had
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
occurred - CORRECT ANSWERS ✔✔A. The original purchase price
|\ |\ |\ |\ |\ |\ |\ |\ |\
plus any transaction costs
|\ |\ |\
Which of the following corporate securities carries the greatest
|\ |\ |\ |\ |\ |\ |\ |\ |\
risk to the investor?
|\ |\ |\
A
Commercial paper |\
B
Common stock |\
C
Preferred stock |\
,D
Bonds - CORRECT ANSWERS ✔✔B. Common Stock
|\ |\ |\ |\ |\ |\
Which of the following is a characteristic of a frozen account?
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
A
The frozen status lasts for 90 days
|\ |\ |\ |\ |\ |\
B
Purchases may not be made in the account
|\ |\ |\ |\ |\ |\ |\
C
Frozen account status covers all accounts at the firm
|\ |\ |\ |\ |\ |\ |\ |\
D
Only margin accounts can have a frozen status - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔A. The frozen status lasts for 90 days
|\ |\ |\ |\ |\ |\ |\ |\
ABC insurance company has issued a variable annuity contract.
|\ |\ |\ |\ |\ |\ |\ |\ |\
The contract offers numerous investment options, including
|\ |\ |\ |\ |\ |\ |\
subaccounts, which hold bonds, domestic equities, and foreign
|\ |\ |\ |\ |\ |\ |\ |\
securities. Which of the following risks does ABC incur when
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
issuing this contract?
|\ |\
A
Mortality and currency risk |\ |\ |\
B
Mortality and expense risk |\ |\ |\
C
Currency and expense risk |\ |\ |\
,D
Inflation and interest-rate risk - CORRECT ANSWERS ✔✔B
|\ |\ |\ |\ |\ |\ |\
Mortality and expense risk |\ |\ |\
Which of the following is required to be maintained for three
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
years?
A
Currency Transaction Reports |\ |\
B
Instant messages |\
C
Customer account records |\ |\
D
Customer complaints - CORRECT ANSWERS ✔✔B
|\ |\ |\ |\ |\
Instant messages |\
When is the final due diligence meeting held?
|\ |\ |\ |\ |\ |\ |\
A
Just prior to the end of the cooling-off period
|\ |\ |\ |\ |\ |\ |\ |\
B
At the start of the cooling-off period
|\ |\ |\ |\ |\ |\
C
, After the IPO |\ |\
D
Prior to submitting the registration statement to the SEC -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔A |\ |\
Just prior to the end of the cooling-off period
|\ |\ |\ |\ |\ |\ |\ |\
Private REITs are all the following, except:
|\ |\ |\ |\ |\ |\
A
Registered with the SEC |\ |\ |\
B
Have no disclosure requirements
|\ |\ |\
C
Only suitable for wealthy investors
|\ |\ |\ |\
D
Usually offered as private placements - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\ |\ |\
Registered with the SEC |\ |\ |\
Which of the following statements is true regarding secondary
|\ |\ |\ |\ |\ |\ |\ |\ |\
offerings?
A
Sale proceeds go to the issuer
|\ |\ |\ |\ |\
B
Shares are sold through an underwriter
|\ |\ |\ |\ |\
