Everything SIE Exam 2024-2025
Questions & ANSWERS 100%
ACCURATE!!
Securities Act of 1933 - ANSWER-Paper act, prospectus act
-Regulates new issues; requires registration of securities
Securities and Exchange Act of 1934 - ANSWER-People and places act
-Regulates BD's and associated persons; requires registration
Antifraud provision; defined inside information
Investment Company Act of 1940 - ANSWER-Regulates Investment Companies
-Face amount certificates, unit investment trusts, and management companies
Securities Investor Protection Act of 1970 - ANSWER-Protects customers from BD failure and
insolvency up to a maximum limit for both and/or securities
-Created the Securities Investor Protection Corporation (SIPC)
Insider Trading and Securities Fraud Enforcement Act of 1988 - ANSWER-Specifies significant
penalties for inside trading and securities fraud
Telephone Consumer Protection Act of 1991 - ANSWER-Administered by the Federal
Communications Commission
-Protects consumers from unwanted telephone solicitations
-Defines the requirements and limitations applied when making unsolicited calls
Bank Secrecy Act - ANSWER-Establishes the U.S Treasury as the lead agency for developing anti-
money laundering programs
-Requires currency transaction reports (CTRs) to be filed for amounts greater than $10,000
Uniform Securities Act - ANSWER-Establishes the framework for state registration
-Applies to securities, broker-dealers, registered representatives, and investment advisors
What is the maximum 12b-1 percentage on a no-load fund? - ANSWER0.25%
What is the maximum 12-b1 fee percentage for a fee-loaded fund? - ANSWER1%
What is the maximum sales charge for open-end mutual fund company? - ANSWER8.5%
What is the percentage penalty for premature IRA distributions? - ANSWER10%
What is the maximum number of days that a customer can place options orders before the signed
option agreement is required? - ANSWER15 calendar days
, What is the maximum period of time to roll over holdings from one qualified plan to another without
penalty? - ANSWER60 calendar days
Characteristics of Qualified Plans - ANSWER-IRS approval required, contributions are tax deductible,
plan cannon discriminate, tax on accumulation is deferred, all withdrawals are taxed, and plan is set
up with a trustee. Types of qualified plans include: traditional IRAs, roth IRAs, 401ks, Simplified
employee pension plans (SEPs), Tax-sheltered annuities (TSAs) both 403b and 501c3, and Savings
incentive match plans for employees (simples)
Characteristics of Non-Qualified Plans - ANSWER-No IRS approval, contributions are not tax
deductible, plan may allow only certain employees to participate, tax on accumulation may be
deferred, only excess over cost basis is taxed at time of withdrawal, and no plan trustee required.
Types of plans include: payroll deduction, deferred compensation and 457 plans
Record retention three years - ANSWER-Advertising
-Trial Balances
-Forms U4 and U5
-Customer confirmation
-Order tickets
-Compliance and procedure manuals
Record retention four years - ANSWER-Customer complaints
-Quarterly filings
Record retention six years - ANSWER-Blotters
-General ledges
-Stock records
-Customer statements
-Customer account records
Record retention lifetime - ANSWEROriginal books and records of partnership or incorporations.
Articles of incorporation
Monetary Policy - ANSWERBy the federal reserve board to influence the money supply
Fiscal Policy - ANSWERby congress and the president to influence the demand for goods and services
Federal Funds - ANSWERThe rate federal member banks charge each other for overnight loans.
Prime Rate - ANSWERThe rate large U.S money center banks charge their best corporate customers
Discount Rate - ANSWERThe rate charged by the Federal reserve board for loans to depository
institutions
Broker call loan rate - ANSWERThe rate banks charge broker-dealers for funds borrowed to lend to
margin account customers
Four stages of the business cycle - ANSWERPeak, contraction, trough, expansion
Questions & ANSWERS 100%
ACCURATE!!
Securities Act of 1933 - ANSWER-Paper act, prospectus act
-Regulates new issues; requires registration of securities
Securities and Exchange Act of 1934 - ANSWER-People and places act
-Regulates BD's and associated persons; requires registration
Antifraud provision; defined inside information
Investment Company Act of 1940 - ANSWER-Regulates Investment Companies
-Face amount certificates, unit investment trusts, and management companies
Securities Investor Protection Act of 1970 - ANSWER-Protects customers from BD failure and
insolvency up to a maximum limit for both and/or securities
-Created the Securities Investor Protection Corporation (SIPC)
Insider Trading and Securities Fraud Enforcement Act of 1988 - ANSWER-Specifies significant
penalties for inside trading and securities fraud
Telephone Consumer Protection Act of 1991 - ANSWER-Administered by the Federal
Communications Commission
-Protects consumers from unwanted telephone solicitations
-Defines the requirements and limitations applied when making unsolicited calls
Bank Secrecy Act - ANSWER-Establishes the U.S Treasury as the lead agency for developing anti-
money laundering programs
-Requires currency transaction reports (CTRs) to be filed for amounts greater than $10,000
Uniform Securities Act - ANSWER-Establishes the framework for state registration
-Applies to securities, broker-dealers, registered representatives, and investment advisors
What is the maximum 12b-1 percentage on a no-load fund? - ANSWER0.25%
What is the maximum 12-b1 fee percentage for a fee-loaded fund? - ANSWER1%
What is the maximum sales charge for open-end mutual fund company? - ANSWER8.5%
What is the percentage penalty for premature IRA distributions? - ANSWER10%
What is the maximum number of days that a customer can place options orders before the signed
option agreement is required? - ANSWER15 calendar days
, What is the maximum period of time to roll over holdings from one qualified plan to another without
penalty? - ANSWER60 calendar days
Characteristics of Qualified Plans - ANSWER-IRS approval required, contributions are tax deductible,
plan cannon discriminate, tax on accumulation is deferred, all withdrawals are taxed, and plan is set
up with a trustee. Types of qualified plans include: traditional IRAs, roth IRAs, 401ks, Simplified
employee pension plans (SEPs), Tax-sheltered annuities (TSAs) both 403b and 501c3, and Savings
incentive match plans for employees (simples)
Characteristics of Non-Qualified Plans - ANSWER-No IRS approval, contributions are not tax
deductible, plan may allow only certain employees to participate, tax on accumulation may be
deferred, only excess over cost basis is taxed at time of withdrawal, and no plan trustee required.
Types of plans include: payroll deduction, deferred compensation and 457 plans
Record retention three years - ANSWER-Advertising
-Trial Balances
-Forms U4 and U5
-Customer confirmation
-Order tickets
-Compliance and procedure manuals
Record retention four years - ANSWER-Customer complaints
-Quarterly filings
Record retention six years - ANSWER-Blotters
-General ledges
-Stock records
-Customer statements
-Customer account records
Record retention lifetime - ANSWEROriginal books and records of partnership or incorporations.
Articles of incorporation
Monetary Policy - ANSWERBy the federal reserve board to influence the money supply
Fiscal Policy - ANSWERby congress and the president to influence the demand for goods and services
Federal Funds - ANSWERThe rate federal member banks charge each other for overnight loans.
Prime Rate - ANSWERThe rate large U.S money center banks charge their best corporate customers
Discount Rate - ANSWERThe rate charged by the Federal reserve board for loans to depository
institutions
Broker call loan rate - ANSWERThe rate banks charge broker-dealers for funds borrowed to lend to
margin account customers
Four stages of the business cycle - ANSWERPeak, contraction, trough, expansion
