SIE (SIE)

Under SEC regulation S-P, which of the following information must a firm include in its customer privacy and opt-out notices? correct answer: the policies to protect the security of nonpublic information under industry regulations, an initial purchase of $3,000 of common stock in a margin account requires a cash deposit of correct answer: $2,000, remember $2000 is the MINIMUM requirement DPPs provide correct answer: exposure to non-correlated assets the primary purpose of a syndicate...

What is the U.S. Government agency that has enforcement authority over the U.S. securities markets? correct answer: SEC Both FINRA and the Securities and Exchange Commission (SEC) regulate and have enforcement capability over the U.S. securities markets and market participants. However, the SEC is a government agency, while FINRA is an SRO - a self-regulatory organization under SEC oversight. The Municipal Securities Rulemaking Board is another SRO that creates rules for municipal market ...

Roth 401 (k) and Roth individual retirement account (IRA) plans share which of the following features? correct answer: Qualified distributions are excluded from federal income tax All of the following risks apply to both foreign and domestic debt instruments except: correct answer: Exchange The redemption value of an open-end investment company's shares is based on the: correct answer: NAV computed after the order is received A decline in the gross domestic product (GDP) must last f...

The redemption value of an open-end investment company's shares is based on the: previous offering price previous closing NAV NAV computed after the order is received offering price computed after the order is received correct answer: NAV computed after the order is received The computation of dollar prices and accrued interest on municipal bonds is normal on what calendar basis? 30/360 30/365 Actual/360 Actual/365 correct answer: 30/360 Blue-sky laws are regulated by which of t...

a company announces a tender offer to its shareholders with the intent to buy a maximum of 1 million shares of its outstanding stock at $10 per share and sets no minimum of shares to be purchased. An investor wants to participate in this offer and tenders his 1000 share position. At the close of the offer period, only 900,000 shares have been tendered. How many, if any, of the investor's shares will the company purchase? a. 0 b. 100 c. 900 d. 1000 correct answer: 1000 Company ABC anno...

To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following product does a corporation issue? correct answer: Rights A customer has a cash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her an account statement? correct answer: Quarterly Broker-dealer ABC seeks to underwrite a municipal securities offering by a ...

FINRA SIE Outline| 107 Questions| With Complete Solutions The Securities Act of 1933 correct answer: The Securities Act of 1933 focused on greater transparency for investors After the stock market crash of 1929, it was passed into law to protect investors. Greater financial transparency and accuracy and less fraud or manipulation. The legislation had two main goals: to ensure more transparency in financial statements so investors could make informed decisions about investments; and t...

In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions? A) Decrease Taxes B) Require banks to increase reserve C) Buy bonds in the open market correct answer: Buy bonds in the open market Under FINRA rules which of the following activities by a registered representative requires written notification to her firm? A) Gambling resulting in winnings in excess of $10,000 B) Driving part time for a transportation netw...

Which stakeholder has first claim priority in a Chapter 11 proceeding? correct answer: Secured Debt Holders What is a firm required to do when receiving cash in excess of $10,000 from one customer in one business day? correct answer: File a Currency Transaction Report If a registered representative drives UBER part time, what is required? correct answer: They must provide written notification to the firm as mandated by FINRA. A customer has a cash balance in her account with long pos...

Exempt Securities from SEC Registration correct answer: -securities listed by the U.S. or federal agencies -Municipal Bonds -Securities issued by banks, savings institutions and credit unions -Public utility stocks or bonds -Securities issued by religious, educational or nonprofit organizations -Notes, bills of exchange, bankers acceptances and commercial paper with an initial maturity of 270 days or less -Insurance policies and fixed annuities Exempt Transactions from SEC Registration...