SIE PRACTICE EXAM QUESTIONS &
ANSWERS PASSED ALREADY
GRADED A+
A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is
CORRECT ANSWER - 600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is
CORRECT ANSWER - 7300
Large time deposits of more than $100,000 are considered to be found in what part of the
money supply? CORRECT ANSWER - M3
By purchasing shares of stock in a company, investors can benefit from which of the following?
An increase in the price of the shares
An increase in price of the company's debt securities
An increase in the yield of the company's outstanding debt securities
The receipt of profits to be distributed CORRECT ANSWER - An Increase in price of shares and
The receipts of profit to be distributed
An offering in which one or more stockholders in the corporation are selling all or a portion of
their own shares to the investing public for the first time is known as CORRECT ANSWER - a
secondary offering
Which of the following is an example of an unsecured debt security?
Debenture
Preferred stock
, Mortgage bond
Income bond CORRECT ANSWER - Debenture and Income bond
Mutual funds that market directly to the public, using no underwriter and charging no sales
charge, are called CORRECT ANSWER - No load funds
During the cooling-off period, underwriters of new securities may
accept orders to purchase shares
not accept orders to purchase shares
not accept indications of interest regarding potential purchases of shares
accept indications of interest regarding potential purchases of shares CORRECT ANSWER - not
accept orders to purchase shares and accept indications of interest regarding potential purchase
of shares
The USA PATRIOT Act's required Customer Identification Program is designed chiefly to prevent
real estate fraud
funding of terrorist activities
use of insider information
money laundering CORRECT ANSWER - funding of terrorist activity and money laundering
The firm element of a broker-dealer's continuing education requirement must be undergone by
all registered persons who CORRECT ANSWER - have direct contact with the public
An August 15 call is written at 4. The call expires without being exercised by the owner. The
writer of the call CORRECT ANSWER - keeps the $400 received when the call was written
A mutual fund can offer all of the following to investors EXCEPT CORRECT ANSWER - physical
custody of the fund's portfolio cash and securities
ANSWERS PASSED ALREADY
GRADED A+
A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is
CORRECT ANSWER - 600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is
CORRECT ANSWER - 7300
Large time deposits of more than $100,000 are considered to be found in what part of the
money supply? CORRECT ANSWER - M3
By purchasing shares of stock in a company, investors can benefit from which of the following?
An increase in the price of the shares
An increase in price of the company's debt securities
An increase in the yield of the company's outstanding debt securities
The receipt of profits to be distributed CORRECT ANSWER - An Increase in price of shares and
The receipts of profit to be distributed
An offering in which one or more stockholders in the corporation are selling all or a portion of
their own shares to the investing public for the first time is known as CORRECT ANSWER - a
secondary offering
Which of the following is an example of an unsecured debt security?
Debenture
Preferred stock
, Mortgage bond
Income bond CORRECT ANSWER - Debenture and Income bond
Mutual funds that market directly to the public, using no underwriter and charging no sales
charge, are called CORRECT ANSWER - No load funds
During the cooling-off period, underwriters of new securities may
accept orders to purchase shares
not accept orders to purchase shares
not accept indications of interest regarding potential purchases of shares
accept indications of interest regarding potential purchases of shares CORRECT ANSWER - not
accept orders to purchase shares and accept indications of interest regarding potential purchase
of shares
The USA PATRIOT Act's required Customer Identification Program is designed chiefly to prevent
real estate fraud
funding of terrorist activities
use of insider information
money laundering CORRECT ANSWER - funding of terrorist activity and money laundering
The firm element of a broker-dealer's continuing education requirement must be undergone by
all registered persons who CORRECT ANSWER - have direct contact with the public
An August 15 call is written at 4. The call expires without being exercised by the owner. The
writer of the call CORRECT ANSWER - keeps the $400 received when the call was written
A mutual fund can offer all of the following to investors EXCEPT CORRECT ANSWER - physical
custody of the fund's portfolio cash and securities
