1
SIE exam ch1-5 Questions and
Answers (100% Correct Answers)
Already Graded A+
Issuers Ans: Person that raises capital by issuing stocks and
bonds
© 2026 Assignment
Equity Securities Ans: stocks issued by corporations as a
form of ownership in the business.
Guru01 - Stuvia
Expert
debt securities Ans: notes and bonds that pay interest and
have a fixed maturity date
Broker Ans: a person who is paid to buy and sell for someone
else
Dealer Ans: person or firm who sells financial instruments
for his own account
market makers Ans: securities dealers who "make markets"
by offering to buy or sell certain securities at specific prices
by displaying quotes
Bid Ans: clients selling price, price the market-maker will pay
Ask Ans: clients purchase price, price market-maker will sell
Investment Advisor Ans: firm that charges clients a fee for
managing their portfolios, based on AUM
, 2
Municipal Advisor Ans: person who advises municipalities
(state/town/city) on bond offerings
Institutional Investor Ans: clients with large assets (banks,
hedgefunds, corp)
Retail Investors Ans: investors who buy stocks or bonds from
broker dealers
Accredited Investor Ans: client with a net worth of over 1M
© 2026 Assignment
EXCLUDING primary residence or annual income of 200k
Qualified Institutional Buyers Ans: buyer owning/investing
Guru01 - Stuvia
100M+ of securities (banks, mutual funds), not a real person
Expert
Primary Market Ans: where new stocks/bonds are sold to the
public
Secondary Markets Ans: markets in which securities are
traded among investors after being issued (NASDAQ, NYSE)
Dealer-To-Dealer Markets Ans: A dealer market is a
transparent financial market in which multiple dealers post the
prices they are willing to buy or sell a specific security.
Third Market Ans: Listed securities traded OTC
Fourth Market Ans: transactions between institutions
Internal crosses set up by money managers
Dark Pool Ans: quotes are concealed to the public,
anonymous, liquidity for large institutional investors
SIE exam ch1-5 Questions and
Answers (100% Correct Answers)
Already Graded A+
Issuers Ans: Person that raises capital by issuing stocks and
bonds
© 2026 Assignment
Equity Securities Ans: stocks issued by corporations as a
form of ownership in the business.
Guru01 - Stuvia
Expert
debt securities Ans: notes and bonds that pay interest and
have a fixed maturity date
Broker Ans: a person who is paid to buy and sell for someone
else
Dealer Ans: person or firm who sells financial instruments
for his own account
market makers Ans: securities dealers who "make markets"
by offering to buy or sell certain securities at specific prices
by displaying quotes
Bid Ans: clients selling price, price the market-maker will pay
Ask Ans: clients purchase price, price market-maker will sell
Investment Advisor Ans: firm that charges clients a fee for
managing their portfolios, based on AUM
, 2
Municipal Advisor Ans: person who advises municipalities
(state/town/city) on bond offerings
Institutional Investor Ans: clients with large assets (banks,
hedgefunds, corp)
Retail Investors Ans: investors who buy stocks or bonds from
broker dealers
Accredited Investor Ans: client with a net worth of over 1M
© 2026 Assignment
EXCLUDING primary residence or annual income of 200k
Qualified Institutional Buyers Ans: buyer owning/investing
Guru01 - Stuvia
100M+ of securities (banks, mutual funds), not a real person
Expert
Primary Market Ans: where new stocks/bonds are sold to the
public
Secondary Markets Ans: markets in which securities are
traded among investors after being issued (NASDAQ, NYSE)
Dealer-To-Dealer Markets Ans: A dealer market is a
transparent financial market in which multiple dealers post the
prices they are willing to buy or sell a specific security.
Third Market Ans: Listed securities traded OTC
Fourth Market Ans: transactions between institutions
Internal crosses set up by money managers
Dark Pool Ans: quotes are concealed to the public,
anonymous, liquidity for large institutional investors
