Knopman Marks SIE Exam with correct answers,

Knopman Marks SIE Exam with correct |\ |\ |\ |\ |\




answers
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Regular Way Settlement for Equities - CORRECT ANSWERS ✔✔T +
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2
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The First Day that a Buyer Buys Stock Without a Dividend -
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CORRECT ANSWERS ✔✔Ex-Dividend date |\ |\ |\




The Last Day a Buyer Can Buy Stock and Receive the Dividend -
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CORRECT ANSWERS ✔✔business day before the ex-date
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When Ex-Dividend Date Happens Relative to the Record Date for
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Regular Way Trades - CORRECT ANSWERS ✔✔1 business day
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before


Fixed Rate Equity Security that Responds to Market Conditions
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like a Bond - CORRECT ANSWERS ✔✔Preferred Stock
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Declaration Date - CORRECT ANSWERS ✔✔date on which the
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board declares that a dividend will be paid, when it will be paid
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(payable date), and the date an investor must be on the books to
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receive the dividend (record date), and this announcement must
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be at least 10 business days before the record date
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Dividends in Arrears - CORRECT ANSWERS ✔✔missed dividend
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payments

,When Ex-Dividend Date Happens Relative to the Record Date for
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Cash-Settled Trades - CORRECT ANSWERS ✔✔the business day |\ |\ |\ |\ |\ |\ |\ |\


after the record date
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Adjustments to Price of a Security with Dividends - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


ANSWERS ✔✔on the morning on the ex-date, the price of the
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security will fall by the amount of the dividend
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Forward Stock Split - CORRECT ANSWERS ✔✔more shares for a
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lower price each |\ |\




Long-Term Capital Gains - CORRECT ANSWERS ✔✔the profits from
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a sale of securities that have been held by the investor for more
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than one year |\ |\




Long-Term Capital Gains Taxation - CORRECT ANSWERS ✔✔taxed
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at a preferential rate
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Nominal Owner - CORRECT ANSWERS ✔✔the registered or legal
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owner of the security in name only, as another entity is the
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beneficial owner, retaining all rights of ownership
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Proxy Statement - CORRECT ANSWERS ✔✔disclosures sent to a
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company's shareholders prior to corporate vote |\ |\ |\ |\ |\




Reverse Stock Split - CORRECT ANSWERS ✔✔fewer shares for a
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higher price each |\ |\

,Rights - CORRECT ANSWERS ✔✔provide shareholders with the
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ability to maintain their proportionate ownership in a company if
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the company issues additional shares
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Short-Term Capital Gains - CORRECT ANSWERS ✔✔profits from |\ |\ |\ |\ |\ |\ |\ |\


the sale of securities that have been held by the investor for one
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year or less |\ |\




Short-Term Capital Gains Taxation - CORRECT ANSWERS ✔✔taxed |\ |\ |\ |\ |\ |\ |\ |\


as ordinary income
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Stock Dividend Taxation - CORRECT ANSWERS ✔✔taxed upon the
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sale of the shares by the investor, not taxed upon receipt
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Street Name - CORRECT ANSWERS ✔✔a type of security
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registration in which the broker-dealer maintains the customer's |\ |\ |\ |\ |\ |\ |\ |\


securities in the firm's name to allow for the ease of transfer
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when securities are bought and sold
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Transfer Agent - CORRECT ANSWERS ✔✔in charge of recording
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changes in ownership of securities and recording the names of
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registered security holders |\ |\




Three Things a Company May Choose to Do with Treasury Shares
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- CORRECT ANSWERS ✔✔1. held by company
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2. reissued to the public
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3. cancelled
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, Event that Turns Common Stock Shares Owned by the Public into
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Treasury Shares Held by the Company - CORRECT ANSWERS
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✔✔company stock buyback (repurchase) |\ |\ |\




Filing Deadline for Form 10-K - CORRECT ANSWERS ✔✔within 90
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days of a company's fiscal year-end
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Purpose of Pre-Emptive Rights - CORRECT ANSWERS ✔✔to avoid
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dilution


Price at Which Warrants are Issued - CORRECT ANSWERS ✔✔with
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no intrinsic value, so the exercise price is well below the current
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market value |\




The Entity that Issues and Cancels Stock Certificates and
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Processes Investor Mailings such as Proxies - CORRECT ANSWERS
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✔✔transfer agent
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The Entity Responsible for Holding Assets and Securities for the
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Protection of Investors, and also for Maintaining Certain Investor
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Records - CORRECT ANSWERS ✔✔custodian|\ |\ |\ |\




Impact of a Cash Dividend Received on a Common Shareholder's
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Cost Basis - CORRECT ANSWERS ✔✔nothing as cash dividends do
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not impact share cost basis they are taxable as ordinary income
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