- Study guides, Class notes & Summaries

SIE Mastery EXAMS BUNDLE | Questions with 100% Correct Verified Answers

-

8 items

QUINTER

Which of the following securities is NOT exempt from the Securities Act of 1933? A. Municipal revenue bond issues B. Common carrier issues C. Income bond issues D. U.S. Government bond issues - C. Income bond issues Which of the following activities is allowed prior to the filing of the registration statement? A. Sending a customer a "red herring" preliminary prospectus B. Accepting an indication of interest from the customer after sending the red herring C. Accepting a deposit to buy ...

-

22 pages

Written in 2023/2024

Grade A+

lecturervince8

An underwriting commitment where the underwriter is liable for any unsold securities is a(n): - Firm Commitment underwriting Under the Securities Act of 1933, new issues are not marginable until how many days have elapsed from the effective date? - 30 days Under SEC rules, the purchaser of a Regulation D private placement must complete and sign a(n): - accredited investor questionnaire The separation of investment banking/research and trading functions within a broker-dealer to stop the p...

-

2 pages

Written in 2023/2024

Grade A+

lecturervince8

When an issuing company is forced to liquidate its assets, which of the following is true of common stockholders? - They came after bondholders and preferred stockholders. Which financial statement is most like a snapshot? - Balance Sheet What would be evaluated in the feasibility study prepared prior to the issuance of revenue bonds? - Expected operating costs of the facility All of the following are sources of income available for general obligation bond debt service EXCEPT: - highway to...

-

2 pages

Written in 2023/2024

Grade A+

lecturervince8

Which statement is BEST regarding participating preferred stock? A The dividend rate is fixed B The dividend rate varies depending on the decision of the Board of Directors C The dividend rate is fixed as to maximum but not as to minimum D The dividend rate is fixed as to minimum but not as to maximum - Answer D++

-

27 pages

Written in 2023/2024

Grade A+

QUINTER

Which item would be found on a company's income statement? - Answer Taxes paid Quick Ratio Formula - Answer current assets- inventories and prepaid expenses/current liabilities Monetary policy is conducted through all of the following methods EXCEPT: - Answer setting tax rates

-

3 pages

Written in 2023/2024

Grade A+

QUINTER

The President of PDQ Corporation donates restricted PDQ shares to the United Way after holding them for 3 years fully paid. United Way can sell the stock without restriction: A. immThe President of PDQ Corporation donates restricted PDQ shares to the United Way after holding them for 3 years fully paid. United Way can sell the stock without restriction: A. immediately B. after holding the securities for 90 days C. after holding the securities for 2 years D. after holding the securities fo...

-

24 pages

Written in 2023/2024

Grade A+

QUINTER

Which of the following is NOT personal information related to a customer account? Responses A. Information received from a credit rating agency about that customer B. Data mined from that customer's activities on the member firm's website C. Aggregated information about activities in all customer accounts at that broker-dealer D. Data mined from that customer's activities on web sites linked to the member firm's web siteData mined from that customer's activities on web sites linked to...

-

29 pages

Written in 2023/2024

Grade A+

QUINTER

When a stock dividend is received, the investor's number of shares increases by the appropriate percentage, but the price per share is adjusted downward. In this case, a 10% dividend on 1,000 shares would increase the position by 100 shares to 1,100 total shares owned For tax purposes, which of the following is not associated with being reportable as ordinary income? A) Interest received from debt securities B) Wages earned C) Gains from securities transactions D) Rent or lease payments...

-

31 pages

Written in 2023/2024

Grade A+

QUINTER

Which statement is TRUE about adjustment (income) bonds? - Answer Semi-annual payment of interest is not assured and repayment of principal at maturity is not assured Income bonds only pay interest if the corporation earns enough "income" to make that interest payment. So payment of interest is not assured. In addition, if the issuer defaults (which could happen), then the principal will not be repaid either. In a period of rising interest rates, an investor in a "Ginnie Mae" mutual fun...

-

10 pages

Written in 2023/2024

Grade A+

QUINTER

Index ETF - Answer Like a Mutual Fund but Traded Passively Managed Negotiable Net Asset Value - Answer Same as "Bid" NAV per share decreases if a dividend is paid

-

13 pages

Written in 2023/2024

Grade A+

QUINTER

A customer sells short 100 shares of ABC at $54 and buys 1 ABC Jan 55 Call @ $6. ABC goes to $79 and the customer exercises the call to cover her short stock position. The customer has a ? - Answer answer= $700 loss 55-54=$1 + 6 (prem)= $7

-

5 pages

Written in 2023/2024

Grade A+

QUINTER

A registered representative calls a potential customer about investing in growth stocks. The customer states "Don't call me. Good-bye" and hangs up the phone. The registered representative should: - Answer place the customer on a "Do Not Call" list During the recession phase of an economic cycle, all of the following occur EXCEPT: - Answer employment levels increase The Securities Exchange Act of 1934 is MOST concerned with: - Answer prevention of manipulation and fraud in thesecondar...

-

6 pages

Written in 2023/2024

Grade A+

QUINTER

The market price of common stock will be influenced by which of the following? I The par value of the shares II Expectations for future earnings of the company III Expectations for future dividends to be paid by the company IV Book value of the company A. I and IV B. II and III C. I, II, III D. II and IV - Answer B. II and III

-

37 pages

Written in 2023/2024

Grade A+

QUINTER

ABC gold mining company has issued a preferred stock. Dividends on the issue may be paid as: - Answer Cash only A customer buys 100 shares of preferred at $101 per share. The par value is $100. The dividend rate is 8%. Each dividend payment will be: - Answer $400 If interest rates fall, issuers most likely will call: (missed twice) - Answer preferred issues with above market interest rates

-

12 pages

Written in 2023/2024

Grade A+

QUINTER

Numbers measuring the output of goods and services have been declining for just under two years. The economy would be characterized as A) being in an economic trough within the business cycle. B) being in a depression. C) being just under the recessionary measurement threshold. D) expanding. - Answer B) being in a depression.

-

15 pages

Written in 2023/2024

Grade A+

QUINTER

A customer buys 100 shares of ABC stock which is now trading at $63. A month later the market goes to $65. The customer thinks the market will remain near $65 in the following months, so he decides to sell 1 ABC Sept 65 Call @ $3. ABC then goes to $60 and the customer's call contract expires and the customer decides to liquidate his stock position at the current market price. The customer has: - Answer no gain or loss A customer buys 300 shares of ABCD stock at $67 per share and then write...

-

12 pages

Written in 2023/2024

Grade A+

QUINTER

Which of the following companies is in a cyclical industry? - Answer A heavy equipment maker *Heavy equipment is a cyclical industry, tending to move in tandem with the business cycle. Precious metals tend to be counter cyclical. Food and fuel are defensive industries. Under the Investment Company Act of 1940, an investment company may take all of the following forms except - Answer a limited partnership with partners as passive investors.

-

17 pages

Written in 2023/2024

Grade A+

QUINTER

Stocks that are listed on the New York Stock Exchange can also typically be listed and traded on: - Answer the Chicago (Midwest) Stock Exchange A customer holds 1,000 shares of ABC stock valued at 80 in a margin account. The debit balance in the account is $35,000. ABC declares and pays a 20% stock dividend. The tax consequence of the distribution to the investor will be: - Answer reduction of cost basis per share

-

19 pages

Written in 2023/2024

Grade A+

QUINTER

SIE Mastery Exam Questions With Complete Solutions The orders that are executed in a rising market are ️️"OSLOBS" - Open Sell Limits and Open Buy Stops The order that are executed if the market drops are ️️"OBLOSS" - Open Buy Limits and Open Sell Stops ABC 8% $100 par preferred is trading at $120 in the market. The current yield is: ️️6.7% formula Current yield = annual income/ Market price current yield= ($8/$120)x 100 Which debt instrument is used to finance impor...

-

22 pages

Written in 2023/2024

Grade A+

StuviaTutors