Summary SIE exam caril: complete study guide Qbank answered latest spring 2023.
SIE exam caril: complete study guide Q-bank answered latest spring 2023. What type of risk is unique to a specific industry, business enterprise, or investment type? - Under which of the following circumstances is an investor in a position to acquire stock? - Options- a premium - Options- strike price A customer believes that ABC's price will go up but does not have the money to buy 100 shares right now. How could the customer use options to profit from an increase in the stock's price? - A corporation's offer to current stockholders of the ability to purchase a proportionate number of new shares at a specific price for a limited time is called a - American depositary receipts (ADRs) - Which of the following records must be maintained for 6 years? While underwriters can assist with preparation and filing, the accuracy and adequacy of these documents is the responsibility of the - What institutions serve as depository and clearing facilities? - What is a transfer agent? - What is the function of the clearing corporation? - Who is considered a control person (security) - What are the two components of Return on Investment? - To expand the overall economy, we want to - To meet a Regulation T margin call, a customer would have how long? - What is A fully disclosed broker-dealer - The regulation enacted by the SEC to protect the privacy of customer information is known as - A market maker that does not honor its firm quote is said to be - A deficit in the U.S. balance of payments can occur if - The general partner of a limited partnership has responsibility of - To grow or expand the economy, U.S. fiscal policy should be to - What is the federal funds rate - The Federal Open Market Committee (FOMC) - Reports of rising inventories generally occur during which period of the business cycle? - Who is exempt from registering with SIPC? - Retail investor - Market maker - When the Federal Reserve Board wants to expand (loosen) the money supply, it will - SROs functioning under the SEC include... Mild inflation can - Discount rate - Prime rate - 4 stages of the business cycle - Securities Act of 1933 - To contract or slow economic growth U.S. fiscal policy should be to - Out of the federal funds rate, discount rate, prime rate and broker call loan rate, which is the most volatile? - The shelf offering (registration) provision under the Securities Act of 1933 allows - Types of direct participation programs (DPPs) - Long vs short investor - Debenture - Municipal revenue bonds - Build America Bonds (BABs) - Long 1 XYZ January 50, put at 2. What is the max. potential gain? - Adjusted cost basis problem - When must a suspicious activity report (SAR) be filed with FinCEN after noticing suspicious activity in an account? - When can corporate accounts trade on margin? - When securities are held in street name, who is the beneficial owner? - What are the requirements of a business continuity plan (BCP) if there is a major business disruption in the firm? - What securities can be purchased on margin? - Spin-off - Stagflation - Keynesian theory - Deflation - Fourth market - bullish position are... bearish positions are... - An investor purchased 100 shares of Acme Shoelace stock for $20 per share. Four years later, the investor sold the stock for $28 per share. This investor would report these transactions, on a per share basis, as - A member firm holding stock in street name may vote the shares as it sees fit if - What records have to be maintained for 6 years? - Churning - What will be found in a trade confirmation? - DERP - Interest payments for securities - inflation - best efforts underwriting types: - market maker - Prime rate - balance of payments - trustee - custodian - Cooling-off period lasts... - When the FOMC buys treasury securities, interest rates will... - What investment products are NOT covered by the FDIC? - Types of interest rates charged - Shelf offering registration - Supply-side theory - Access equals delivery rule - A strong US dollar leads to.. - prime brokerage account - Depository trust company (DTC) - carrying firm introducing/fully disclosed - Main purpose of issuer/primary market transactions Secondary market transactions are where... Primary market transactions are where... U.S. consumers are increasing their imports of foreign-made goods, what will likely happen to the GDP? What is the only form of advertising permitted before the effective date? What is the primary regulatory body for the securities industry? The cost of doing business is closely linked to the cost of money, which is known as Firm commitment underwriting is when... FINRA regulates Syndicate A depository What type of risk can be reduced through diversification? What type of risk cannot be reduced through diversification? Limited partnerships The effect of continually rising retail prices on the investment returns of one's portfolio is best described as Long call and long put - Short call and short put - What does it mean when a fund is highly leveraged? Penny stock -. T-bonds and T-notes pay interest.... Why is a fixed security not considered a security? A convertible feature for a corporate bond allows What causes a mutual fund's NAV per share to fall? American-style vs. European-style option Where do tax deductions for real estate programs derive from? When the U.S. government deposits securities with a trustee, against which it issues certificates representing principal payments only, and no regular interest payments, these are known as - What are the three yields used for debt instruments that all mean the same thing? Sovereign risk is... Legislative vs Regulatory risk Liquid vs illiquid investments A registered representative speaks to a customer about a particular 6% municipal bond quoted on a 6.5% basis. What does this mean? Money market instruments guaranteed by a bank that are used to provide capital for international trade/ provide short-term financing for importers and exporters are called If an investor is long an option contract and wishes to exercise the contract, the investor notifies the broker-dealer, who then notifies... If the buyer exercises the contract, then the seller... What does a bond certificate represent? What happens in repo (reverse repurchase) agreement A preemptive right for existing shareholders is best described as When is settlement for options trading? capital market vs money market instruments Types of money market instruments What are ad valorem taxes? What is capital risk? What are depletion allowances? Limited partnerships consist of... While options accounts are initially approved by the branch office manager (BOM), they must ultimately be approved by the... When the current yield is higher than the coupon, what does this mean? When a bond is being sold with current interest rates lower than coupon, what does this mean? - How are ETFs priced? What is market timing? What is the most common form of direct participation programs (DPPs)? What is the one option contract with unlimited loss potential? What do federal funds represent? What are the steps for opening a new options account? What are anticipation notes? What are the 3 types of investment companies under the Investment Act of 1940? The declaration, record and payment dates are all set by ___________, while the ex-dividend date is set by _________. Exception reports are filed when... What is capping? What is backing away? - *correct: The failure to honor a firm quote on a security What is a contemporaneous trader? What are the three stages of money laundering? Regulation T Standard corporate actions Nonstandard/unique corporate actions What must happen in order to sell short? What does Regulation S-P consider nonpublic information? What is the threshold for triggered suspicious activity and is grounds for filing an SAR (as compared to a CTR)? What is a tender offer? What is a buy-back? What information is contained on the trade confirmation sent to the investor at or on the settlement date? What would require a loan consent form? What is a municipal financial professional (MFP)? What dose the NAC (National Adjudicatory Council) do? Prospectus vs. official document What are considered investment companies under the Investment Act of 1940? What can you do in hedge funds that you can't in mutual funds? What does it mean when an option is at "parity" Investors who are bullish on a stock should buy.... Investors who are bearish on a stock should buy.... - Out of the following, which are not backed by the full faith of the government? : Treasury bonds, bill, STRIPS, or receipts? Why is it easier for municipalities to issue revenue bonds, as opposed to general obligation (GO) bonds? What is a debenture? How can an investor take advantage of intraday price changes due to normal market factors? - Under Rule 144, what sales are subject to volume limitation shares? What are Jumbo CDs - Who is the only entity allowed to issue options? Why do corporations issue promissory notes? What are the three debt maturity schedules that can be used? What are Treasury bills? What are the rules for penny stocks? What constitutes an established customer? What is the maximum potential loss for a short put? What is the maximum gain for any short position (call or put) What do tax credits do for real estate program partners? What debt instrument pays no periodic interest? What is inflation risk? How is the coupon rate for a bond calculated? - Automatic exercise will occur at expiration for any equity option contract that is in the money by at least What are the 3 types of real estate direct participation programs? What is financial risk? U.S. consumers are increasing their imports of foreign-made goods. On this data alone, one might expect gross domestic product (GDP) to Limited partnerships sold publicly via a prospectus offering would be expected to have - A corporation with 1 million shares of stock outstanding wishes to sell another 250,000 shares. When management conducts a rights offering, a shareholder owning 100 shares will be given stock rights to purchase how many additional shares? An investor holds a 6% callable bond purchased at 105. If the issuer calls the bond before maturity, the yield to call realized by the investor would be Political risk is more associated with Records relating to a currency transaction report must be retained for An investor has a long position in OMQ stock. After selling the stock at a loss, the investor could purchase which of the following and not violate the wash sale rule? An investor is long 1 July 40 call at 2. This investor If a customer's account has been frozen, can new orders be issued? - *correct: Yes, if paid in full. The funds must be in the account before the order to buy new securities can be issued If a customer wants to be in a position to buy while taking in the premium, they should.... - Which of the following securities is exempt from the Regulation T margin requirements but still subject to an initial margin requirement as determined by the broker-dealer? What is naked short selling? What does it mean when a security is held in "street name"? An investor in a direct participation program wishes to divest of a partnership interest purchased some time ago. You would correctly advise that Short-term purchases and sales of a mutual fund to take advantage of price fluctuation is known as When would producers report periods of rising inventories? When would producers report periods of falling inventories? What is and who performs proprietary trading? What is a prime account? What are the rules for prospectus delivery for IPOs and APOs To be an individual accredited investor, one must have a net worth of.... What is fiscal policy? While private placement securities can be sold to accredited investors, the vast majority of these sales are for.... What typically do we see during periods of inflation? - What tools do the FRB use to impact the money supply? What are mutual funds typically prohibited from that hedge funds are able to utilize? Persons who enter trades at or near the same time in the same security as a person who has inside information are known as What does "investment strategy" include under the Know your customer (KYC) rule All GTC orders are automatically cancelled if gone unexecuted on... What are the primary benefits of having a Roth IRA, as opposed to a traditional IRA? A client of a member broker-dealer has just found a new job requiring relocation with a salary paying 50% more than the old job. The client should The Securities Exchange Act of 1934 required the registration of What is a split offering? What details of the underwriter must be included in the prospectus? How does the Securities Act of 1933 protect investors who buy new issues What are official statements (disclosure documents) used in connection with? Who protects from and provides criminal penalties for fraud in the issuance of new securities? - Assets offered and traded in the securities markets can include..... How long is the cooling-off period? Public offerings of securities are regulated under During the cooling-off period, what is permitted regarding deficiency letters and solicitations? - A select pair or group of companies organized to underwrite corporate or municipal securities is BEST known as a(n) The law that provides the legal framework for state registration of securities is the When is the Securities and Exchange Disclaimer mandated to be shown? What is another name of an option? What is the prospectus delivery requirement for listed, nonlisted and non-NASDAQ securities? - Underwriters acting as principals and committing to purchase any unsold shares for the syndicate account would BEST be described as being engaged in a(n) The access equals delivery rule applies to Examples of exempt securities include... Securities issued by the U.S. government are backed by For Treasury receipts, how is interest paid and how are they sold? When the U.S. government deposits securities with a trustee, against which it issues certificates representing principal payments only, and no regular interest payments, these are known as - Treasury receipts are backed by What are Local Government Investment Pools (LGIPs)? An investor is convinced that CDT stock will soon decline in value for a number of reasons. What investment strategy will allow the investor to take advantage of the anticipated decline in share value with the smallest cash investment? Characteristics of revenue municipal bonds include... Costs to maintain shareholder records, costs to provide services to shareholders, and the investment adviser's fees are all what? The costs paid in the form of sales charges (loads) to an underwriter or broker-dealers selling mutual funds to the public are all what? Limited partnerships sold publicly via a prospectus offering would be expected to have - Direct participation programs (DPPs) are set up When a company is reorganizing, what type of security would they typically issue? When an investor purchases a corporate bond, the investor is Puttable bonds (bonds with put features) are likely to be put back to the issuer, for the benefit of the bondholder, when... Leasing participation programs What are no-load shares? How do REITs differentiate from limited partnerships (& DPPs in general)? To expand the economy during a recession to stimulate the economy, the FRB would... - To tighten the economy during expansion and prevent inflation, the FRB would.... During times when interest rates are rising, what type of preferred share is likely to pay a higher annual dividend? Guaranteed bonds Callable preferred stock is advantageous to the issuing company because it allows the company to Of the following strategies, which is considered most risky in a strong bull market? In any 90 day period, an investor may sell the greater of... An affiliate holding unregistered shares can sell under Rule 144 How do you determine a bond's yield? What is least likely to impact a yield? Which option has unlimited loss potential? Sales loads, management fees and operating expenses do what to the fund's return? Rule 144 imposes volume limitations on whom? An investor lending money to an entity receives back the principal amount of the loan on the - Exempt from the penny stock rules are An investor is convinced that CDT stock will soon decline in value for a number of reasons. Which investment strategy will allow the investor to take advantage of the anticipated decline in share value with the smallest cash investment? Purchasing a call or a call spread are what types of options strategies? All corporations will issue what type of stock? When is the settlement date for options transactions? What is a limited partnership? For options, each is a 2-party contract, which allows - What do company-issued bonds (debt securities) represent to the investors? If an investor in a DPP wanted to divest of a partnership, the adviser would be correct in telling him what? What options position has unlimited gain potential? Regarding options, it should be recognized that the maximum movement for any underlying stocks price could be - Your customer wants to be in a position to buy CDS stock while taking in premium. What options position would accomplish this? An investment that allows for a share in the income, gains, losses, deductions, and tax credits of the business entity to pass through to investors is known as An investor purchases a T-bill for $9,925 that will mature at $10,000. The difference between the $9,925 paid and the $10,000 that will be received is What is the statute of limitations on fraudulent practices under the Securities Act of 1934? - What is the penalty for freeriding? What are the two exceptions to the written notice and approval requirement for lending arrangements between customers and RRs? Mr. Smith enters a trade in a stock at the same time as Mr. Jones, who has inside information regarding that company. Mr. Smith is considered A market maker owning 70,000 shares of HCHS stock noted that it is down .25 on the day so far. Near the very end of the trading day the market maker enters an order to buy 100 shares at the market. This is an example of A market maker provides a firm quote to another broker/dealer then refuses to buy or sell at the price quoted. This is a violation where the market maker is said to be Efforts to push up the price of stock one owns by soliciting buy orders from customers so that the stock owned can be sold later at a higher price is a violation commonly known as Regarding the potential financial exploitation of seniors, impacted accounts would be those for individuals Under what circumstances could a broker-dealer firm share in a financial loss with a customer? - the exercise price is also known as.... Index and foreign currency options must be settled in
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sie exam caril
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business enterprise
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sie exam caril complete study guide
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what type of risk is unique to a specific industry
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or investment type
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under which of the following circumstances is an invest
