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STC SIE Exam Final Practice Questions And Answers Verified 100% Correct!!
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STC SIE Exam Final Practice Questions And Answers Verified 100% Correct!!
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Name: Score:101 Multiple choice questions
Term 1 of 101
A company has been struggling and has failed to make the most recent interest payment on the
bonds that it has issued. This issuer's bondholders have experienced:
Capital risk
Liquidity risk
Credit risk
Reinvestment risk
Term 2 of 101
Which of the following is the greatest risk in a variable life insurance policy?
Credit Risk
Market Risk
Inflation Risk
Interest Rate Risk
Term 3 of 101
Which of the following securities cannot be purchased in the secondary market?
ETF
ETN
Hedge fund
REIT
,Term 4 of 101
The person who distributes interest in a DPP is referred to as the:
Distributor
Syndicator
Managing partner
Limited partner
Term 5 of 101
Which of the following securities would be subject to federal securities registration requirements?
Securities offered through a private placement
GNMA securities
Municipal bonds
Mutual fund shares
Term 6 of 101
Which of the following is a characteristic of a Roth IRA?
Contributions are made in after-tax dollars.
Contributions are permitted regardless of an individual's gross income.
Distributions from the plan are taxed as long-term capital gains.
Qualified distributions are taxed as ordinary income.
,Term 7 of 101
Which of the following is NOT a benefit of investing in a real estate investment trust (REIT)?
Stable dividend income
Liquidity
Passive losses
Diversification
Term 8 of 101
When purchasing a fixed annuity, an individual should understand each of the following about the
investment, EXCEPT that:
The individual assumes the investment risk
The fixed annuity is subject to purchasing power risk.
The fixed annuity is not a security.
The fixed annuity is only subject to insurance regulations.
Term 9 of 101
A CPA has indicated his willingness to instruct some of his clients to open accounts with a
registered representative of a broker-dealer in return for a portion of the commissions generated
in these accounts. The registered representative:
Cannot share any commissions with the CPA
Is permitted to share commissions if a bona fide contract is in place
Is permitted to share in commissions in proportion to the business generated in the
accounts
Cannot share in commissions, but can agree to a fee for the referrals
, Term 10 of 101
In a Roth IRA, contributions are made with:
Pre-tax dollars
After-tax dollars
Tax-exempt dollars
A combination of pre- and post-tax dollars
Term 11 of 101
Which of the following is the best hedge for a long stock position?:
Buying a call
Buying a put
Selling a call
Selling a put
Term 12 of 101
Which of the following terms is associated with an entity that sells securities from its own
inventory?
Broker
Investment adviser
Market maker
Dark pool
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