SIE practice exam 2024 Questions &
Answers 100% Correct!!
A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is -
ANSWER600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is -
ANSWER7300
Large time deposits of more than $100,000 are considered to be found in what part of the money
supply? - ANSWERM3
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 - ANSWERAn 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 - ANSWERa secondary offering
Which of the following is an example of an unsecured debt security?
Debenture
Preferred stock
Mortgage bond
Income bond - ANSWERDebenture and Income bond
Mutual funds that market directly to the public, using no underwriter and charging no sales charge,
are called - ANSWERNo 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 - ANSWERnot 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 - ANSWERfunding of terrorist activity and money laundering
In the dividend disbursement process three of the four critical dates are determined by the board of
directors but one is determined by either FINRA for OTC stocks or the exchange for listed stocks.
Which one is it? - ANSWERex dividend
An investor owns 500 shares of stock whose current market value is $20 per share. The stock
undergoes a split, after which the investor owns 400 shares. What is the new price of the investor's
stock? - ANSWER$25 per share
Listed options expire on - ANSWERthe 3rd Friday of the expiration month
A corporation has issued a single bond having successive maturity dates set from 2020 through 2030.
This is known as what type of bond? - ANSWERSerial
An investor discovers that exactly 2 years and 9 months ago, the investor was given fraudulent
information on a security that prompted the investor to sell it. As a result, the investor lost money.
How long does the investor have to bring action? - ANSWER3 months
While a branch office manager can initially approve an options account for trading, it must ultimately
be approved by - ANSWERthe firm's ROP
A shareholders' meeting for ABC Corporation will take place in 8 days. A customer whose stock is
being held in street name has not returned the proxy statements. Which of the following is TRUE? -
ANSWERThe member firm may vote the shares as it wishes on minor matters
Answers 100% Correct!!
A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is -
ANSWER600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is -
ANSWER7300
Large time deposits of more than $100,000 are considered to be found in what part of the money
supply? - ANSWERM3
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 - ANSWERAn 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 - ANSWERa secondary offering
Which of the following is an example of an unsecured debt security?
Debenture
Preferred stock
Mortgage bond
Income bond - ANSWERDebenture and Income bond
Mutual funds that market directly to the public, using no underwriter and charging no sales charge,
are called - ANSWERNo 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 - ANSWERnot 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 - ANSWERfunding of terrorist activity and money laundering
In the dividend disbursement process three of the four critical dates are determined by the board of
directors but one is determined by either FINRA for OTC stocks or the exchange for listed stocks.
Which one is it? - ANSWERex dividend
An investor owns 500 shares of stock whose current market value is $20 per share. The stock
undergoes a split, after which the investor owns 400 shares. What is the new price of the investor's
stock? - ANSWER$25 per share
Listed options expire on - ANSWERthe 3rd Friday of the expiration month
A corporation has issued a single bond having successive maturity dates set from 2020 through 2030.
This is known as what type of bond? - ANSWERSerial
An investor discovers that exactly 2 years and 9 months ago, the investor was given fraudulent
information on a security that prompted the investor to sell it. As a result, the investor lost money.
How long does the investor have to bring action? - ANSWER3 months
While a branch office manager can initially approve an options account for trading, it must ultimately
be approved by - ANSWERthe firm's ROP
A shareholders' meeting for ABC Corporation will take place in 8 days. A customer whose stock is
being held in street name has not returned the proxy statements. Which of the following is TRUE? -
ANSWERThe member firm may vote the shares as it wishes on minor matters
