SIE REGULATIONS EXAM QUESTIONS
& ANSWERS RATED 100% CORRECT
10Q Report CORRECT ANSWER - the quarterly unaudited financial statements of corporate
issuers that are filed with the SEC, and which are a public record.
Included in the 10Q are the corporation's balance sheet; income statement; retained earnings
statement; and sources and uses of cash statement.
Issuers file 3 10Qs and 1 10K per year
13 D notice CORRECT ANSWER - file if anyone accumulates %5 or greater holding in a listed
company's stock
13 D report CORRECT ANSWER - Document filed with the SEC by an individual who acquires 5
percent of a publicly held firm's stock
must be done within 10 days of having the 5% takeover
(stops sneaky takeovers)
5% policy CORRECT ANSWER - Secondary market
-Applies to exchanges and OTC
-Guideline not a rule - mark ups and commissions
In determining fair and reasonable:
,Type of security involved;
Availability of the security;
Dollar amount of the transaction;
Level of service provided.
NOT munis
NOT new issues
8k report CORRECT ANSWER - a corporate filing made with the SEC for any unusual events that
occur:
declares bankruptcy;
declares a merger;
declares a divestiture;
changes the composition of the Board of Directors
A municipal principal must approve what? CORRECT ANSWER - Every new account;
Every municipal securities transaction;
Every written communication to a customer involving municipal securities;
The resolution of every customer complaint involving municipal securities.
A RR can't share in the gain or loss of a customer account unless CORRECT ANSWER - joint
account is opened with the customer
sharing is porportionate to the capital contributed
municipal principal approves of the arrangement in writing
,Accredited Investor CORRECT ANSWER - Wealthy investor who meets requirements of the
Securities and Exchange Commission as to minimum net worth (in excess of $1.0 million) or
annual income (in excess of $200,000)
$300,000 in come for a couple for at least 2 years
institutional investor
5 million for institution
person has to sign the accredited investor questionnaire
All advertising for muni bonds must be approved by: CORRECT ANSWER - municipal principal or
general principal prior to use
Are ADRs exempt or non-exempt from the Securities Act of 1933? CORRECT ANSWER - NON
EXEMPT
American Depository Receipts are a vehicle for foreign companies to issue securities in the
United States.
ADRs are a non-exempt security that must be registered with the SEC and initially sold with a
Prospectus
Are fixed annuities exempt or non-exempt from the Securities Act of 1933? CORRECT ANSWER -
Exempt
fixed annuities are considered to be a pure insurance product, and are not defined as securities
- thus there is no registration requirement and Prospectus requirement for fixed annuities
, Are investment companies exempt or non-exempt from the Securities Act of 1933? CORRECT
ANSWER - Investment Companies formed under the Investment Company Act of 1940 are NON
EXEMPT.
The types of investment companies defined by the Investment Company Act of 1940 are:
Face Amount Certificate Company;
Unit Investment Trust;
Management Company.
The securities of these issuers must be registered with the SEC and sold with a Prospectus.
Variable annuities are a type of unit investment trust, and thus are non-exempt.
Open-end (Mutual) funds and Closed-End (Publicly Traded) funds are management companies
that are non-exempt and their initial offering must be registered with the SEC and they must be
sold with a Prospectus.
Are long put options allowed per FINRA? CORRECT ANSWER - YES
protects against downside loss
Are prospectuses retained at the firm for audit? CORRECT ANSWER - No, they can come from
SEC or issuer
Are repurchase agreements on exempt (gov't & munis) permitted? CORRECT ANSWER - YES
these aren't considered a guarantee
As a RR, the individual can: CORRECT ANSWER - Offer new municipal issues to the public;
Trade municipal issues for the public;
& ANSWERS RATED 100% CORRECT
10Q Report CORRECT ANSWER - the quarterly unaudited financial statements of corporate
issuers that are filed with the SEC, and which are a public record.
Included in the 10Q are the corporation's balance sheet; income statement; retained earnings
statement; and sources and uses of cash statement.
Issuers file 3 10Qs and 1 10K per year
13 D notice CORRECT ANSWER - file if anyone accumulates %5 or greater holding in a listed
company's stock
13 D report CORRECT ANSWER - Document filed with the SEC by an individual who acquires 5
percent of a publicly held firm's stock
must be done within 10 days of having the 5% takeover
(stops sneaky takeovers)
5% policy CORRECT ANSWER - Secondary market
-Applies to exchanges and OTC
-Guideline not a rule - mark ups and commissions
In determining fair and reasonable:
,Type of security involved;
Availability of the security;
Dollar amount of the transaction;
Level of service provided.
NOT munis
NOT new issues
8k report CORRECT ANSWER - a corporate filing made with the SEC for any unusual events that
occur:
declares bankruptcy;
declares a merger;
declares a divestiture;
changes the composition of the Board of Directors
A municipal principal must approve what? CORRECT ANSWER - Every new account;
Every municipal securities transaction;
Every written communication to a customer involving municipal securities;
The resolution of every customer complaint involving municipal securities.
A RR can't share in the gain or loss of a customer account unless CORRECT ANSWER - joint
account is opened with the customer
sharing is porportionate to the capital contributed
municipal principal approves of the arrangement in writing
,Accredited Investor CORRECT ANSWER - Wealthy investor who meets requirements of the
Securities and Exchange Commission as to minimum net worth (in excess of $1.0 million) or
annual income (in excess of $200,000)
$300,000 in come for a couple for at least 2 years
institutional investor
5 million for institution
person has to sign the accredited investor questionnaire
All advertising for muni bonds must be approved by: CORRECT ANSWER - municipal principal or
general principal prior to use
Are ADRs exempt or non-exempt from the Securities Act of 1933? CORRECT ANSWER - NON
EXEMPT
American Depository Receipts are a vehicle for foreign companies to issue securities in the
United States.
ADRs are a non-exempt security that must be registered with the SEC and initially sold with a
Prospectus
Are fixed annuities exempt or non-exempt from the Securities Act of 1933? CORRECT ANSWER -
Exempt
fixed annuities are considered to be a pure insurance product, and are not defined as securities
- thus there is no registration requirement and Prospectus requirement for fixed annuities
, Are investment companies exempt or non-exempt from the Securities Act of 1933? CORRECT
ANSWER - Investment Companies formed under the Investment Company Act of 1940 are NON
EXEMPT.
The types of investment companies defined by the Investment Company Act of 1940 are:
Face Amount Certificate Company;
Unit Investment Trust;
Management Company.
The securities of these issuers must be registered with the SEC and sold with a Prospectus.
Variable annuities are a type of unit investment trust, and thus are non-exempt.
Open-end (Mutual) funds and Closed-End (Publicly Traded) funds are management companies
that are non-exempt and their initial offering must be registered with the SEC and they must be
sold with a Prospectus.
Are long put options allowed per FINRA? CORRECT ANSWER - YES
protects against downside loss
Are prospectuses retained at the firm for audit? CORRECT ANSWER - No, they can come from
SEC or issuer
Are repurchase agreements on exempt (gov't & munis) permitted? CORRECT ANSWER - YES
these aren't considered a guarantee
As a RR, the individual can: CORRECT ANSWER - Offer new municipal issues to the public;
Trade municipal issues for the public;
