Securites Industry Essentials Exam
Rated A+|Questions and Answers
Verified 100% Correct
Investments generally traded according to their average life rather than their stated
maturity dates? - ANSWER asset-backed securities
An associated person who is not a registered representative is permitted to engage in -
ANSWER providing account opening forms to a new customer
An investor owns 100 shares of XYZ common stock at the current market price of
$50 per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split
stock position will be - ANSWER 50 shares at $100 per share
Under FINRA rules, this action by registered representatives requires written
notification to the firm - ANSWER Driving part time for a transportation network
company on weekends
The following communications with the public can be considered misleading - ANSWER
Literature providing 10-year performance information to support predictions of future
performance
The redemption value of an open-end investment company's shares is based on the -
ANSWER NAV (net asset value) computed after the order is received
, In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares? - ANSWER
transfer agent
What Form U4 reportable event results in a statutory disqualification? - ANSWER
a felony conviction for a driving under the influence (DUI) charge
What isn't an example of inside information if the customer shares with his
registered representative? - ANSWER declared stock dividend
What is true regarding a customer account held as tenants in common? - ANSWER
the ownership of the decedent's assets is governed by their will or state of law
Under a system of statutory voting, a common stockholder has as many votes for
each vacancy on the board of directors as the number of - ANSWER shares owned by
the stockholder
A transaction in which a writer covers a position by purchasing an option is - ANSWER a
closing purchase
A broker-dealer is permitted to accept payment for a new issue from a new
customer when the - ANSWER registration is effective
How often must a firm send an account statement - ANSWER quarterly
Advantage of index funds? - ANSWER lower management fees due to
passive management of the fund
Blue Sky laws are regulated by - ANSWER state securities regulators
Rated A+|Questions and Answers
Verified 100% Correct
Investments generally traded according to their average life rather than their stated
maturity dates? - ANSWER asset-backed securities
An associated person who is not a registered representative is permitted to engage in -
ANSWER providing account opening forms to a new customer
An investor owns 100 shares of XYZ common stock at the current market price of
$50 per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split
stock position will be - ANSWER 50 shares at $100 per share
Under FINRA rules, this action by registered representatives requires written
notification to the firm - ANSWER Driving part time for a transportation network
company on weekends
The following communications with the public can be considered misleading - ANSWER
Literature providing 10-year performance information to support predictions of future
performance
The redemption value of an open-end investment company's shares is based on the -
ANSWER NAV (net asset value) computed after the order is received
, In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares? - ANSWER
transfer agent
What Form U4 reportable event results in a statutory disqualification? - ANSWER
a felony conviction for a driving under the influence (DUI) charge
What isn't an example of inside information if the customer shares with his
registered representative? - ANSWER declared stock dividend
What is true regarding a customer account held as tenants in common? - ANSWER
the ownership of the decedent's assets is governed by their will or state of law
Under a system of statutory voting, a common stockholder has as many votes for
each vacancy on the board of directors as the number of - ANSWER shares owned by
the stockholder
A transaction in which a writer covers a position by purchasing an option is - ANSWER a
closing purchase
A broker-dealer is permitted to accept payment for a new issue from a new
customer when the - ANSWER registration is effective
How often must a firm send an account statement - ANSWER quarterly
Advantage of index funds? - ANSWER lower management fees due to
passive management of the fund
Blue Sky laws are regulated by - ANSWER state securities regulators
