EXAMFX SIE LATEST 2024-2025 WITH ACTUAL QUESTIONS
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What is the maximum amount of SIPC coverage available to each separate
customer? - ANSWER-$500,000 including up to $250,000 in cash
If a customer purchases securities and does not settle the account 4 business
days, what should the brokerage firm do first? - ANSWER-Ask for an extension
of time from the SRO or cancel the trade and sell off the purchased securities
When must a customer who purchases securities in a cash or margin account
pay for the securities? - ANSWER-4 business days
What is the maximum insurance the SIPC provides customer accounts for
unreturned cash? - ANSWER-$250,000
If a customer purchases securities and does not settle the account in 4 business
days, what is the brokerage firm's first order of business? - ANSWER-To sell off
the purchased securities and freeze the account for 90 days
What act covers the trading of securities after they have been issued, the
regulation of exchanges, and the regulation of broker/dealers? - ANSWER-The
Securities Exchange Act of 1934
,What term describes the legislation that regulates the sale of securities at the
state level? - ANSWER-Blue Sky laws
What entity is responsible for the safekeeping of an investment company's cash
and securities? - ANSWER-The custodian
Between what two parties does the underwriting agreement exist? - ANSWER-
The issuer and the managing underwriter
What FINRA bylaw regulates to dealings between member firms? - ANSWER-
Uniform Practice Code
What FINRA bylaw defines the proper methods for handling violations of trade
practice rules? - ANSWER-Code of Procedure
An underwriter is also known as what? - ANSWER-Investment Banker
What act of legislation created The Securities and Exchange Commission? -
ANSWER-The Securities Exchange Act of 1934
What FINRA bylaw is concerned with the settlement of disputes? - ANSWER-
Code of Arbitration
What is the maximum insurance the SIPC provides customer accounts for
unreturned securities? - ANSWER-$500,000
When a firm effects trades for its own account, it is known as the principal. In
what capacity is it considered to act? - ANSWER-Dealer
,What SRO enforces MSRB rules? - ANSWER-FINRA
An investment adviser receives a fee for his services. What is this fee classified
as? - ANSWER-An operating expense of the fund
Under Reg. T, what can a customer do if his account is frozen for 90 days? -
ANSWER-Purchase securities on a cash basis
Whether the broker/dealer acted as an agent or a principal in a transaction
must be disclosed on what document? - ANSWER-Trade confirmation
If an investor wanted to purchase an unlisted security, where would the order
be entered? - ANSWER-In the over-the-counter market
What are the NYSE trading hours? - ANSWER-9:30 AM - 4:00 PM Eastern Time
After a security is issued in the primary market, it trades in what market? -
ANSWER-Secondary market
When is a "red herring" prospectus distributed? - ANSWER-During the cooling-
off period
What is the term for the date when the SEC receives a registration statement
from an issuer? - ANSWER-Filing date
What type of securities offering cannot be advertised to the public? - ANSWER-
Regulation D
A listed security trading OTC is trading in what market? - ANSWER-Third market
, A publicly traded company issues more shares in order to finance a new
factory. What type of offering is this? - ANSWER-Additional Public Offering
(APO)
A formal offer to existing shareholders to purchase their stock above the
current market price is what kind of offer? - ANSWER-Tender offer
Under Reg. A of the Securities Exchange Act of 1933, new issues valued at what
amount may be exempt from registration? - ANSWER-5,000,000 or less
What rule sets down the requirements for the resale of restricted stock to the
public? - ANSWER-Rule 144
The proceeds from a sale of a security went directly to the issuer of the
security. In what market did this transaction occur? - ANSWER-Primary market
What is the term for securities that are not required to register with the SEC or
meet the prospectus requirements of the Securities Exchange Act of 1933? -
ANSWER-Exempt securities
A prospectus is the disclosure document for the public offering of new issues.
What is the disclosure document for private placements called? - ANSWER-
Offering memorandum
Who represents orders from the public on the trading floor of the NYSE? -
ANSWER-Floor broker
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