SIE Exam Greenlight Exam 1 2024
Update Greenlight SIE Actual Exam
Latest 2024 Questions and Correct
Answers Rated A+
Reverse Repos - ANSWER-Also referred to as a matched sale.
May a brokerage firm place a temporary hold on the transfer of securities? -
ANSWER-Yes, for the account of a senior investor.
When selling a security for a customer, all of the following items MUST be
included on the sell order ticket, EXCEPT: - ANSWER-A. The number of
shares or par value
B. The location of the security
*C. The customer's Social Security number*
D. If the account is discretionary, whether discretion was exercised
Funds collected from 12b-1 fees cannot be used to pay for which of the
following fund expenses? - ANSWER-Commissions paid for executing
trades in the fund's portfolio
A brokerage firm will generally distribute which of the following to
employees of the firm? - ANSWER-The restricted list
A brokerage firm creates an in-house, non-cash incentive program. This is
permitted if it's tied to the RR's sale of which of the following products? -
ANSWER-All securities products that are sold by the RR
If a bond is selling at a premium and is callable at a premium, the yield
would be calculated based on: - ANSWER-The yield-to-worst
When analyzing a mutual fund's expenses, an analyst does NOT consider:
- ANSWER-The sales load charged to buy fund shares
,A corporation declares a 5% stock dividend that's payable on Thursday,
October 18. If the record date is Wednesday, October 3, the ex-date for this
distribution is: - ANSWER-Tuesday, October 2
Which of the following activities is NOT performed by a transfer agent? -
ANSWER-Maintaining the issuer's ownership register for each issuance of
securities
The federal securities regulation that requires disclosure by issuers offering
securities to the public is: - ANSWER-The Securities Act of 1933
The main focus of the Securities Act of 1933 is the primary market where
securities are sold by issuers. The Act demands that investors be provided
with full and fair disclosure by issuers of securities so that they're able to
make informed investment decisions. The Act also provides specific rules
for the conduct of both issuers and the investment bankers (underwriting
firms) that assist issuers in raising capital.
An individual wants a real estate investment that offers tax benefits and
provides the ability to share directly in the earnings of the business. Which
of the following BEST meets those objectives? - ANSWER-DPP
Direct participation programs (DPPs) can be businesses that invest directly
in real estate programs. Investors in these programs are considered
owners of the business. These owners benefit from various tax benefits
(tax deductions and credits) and also from the ability to share directly in the
revenues. REITs invest in real estate properties and/or debt, but
deductions and revenues don't flow through the trust. ETNs and ETFs are
products that trade like debt or equity investments. (17545)
For how long is a letter of intent effective? - ANSWER-13 Months
Which of the following is a reduction in the rate of inflation? - ANSWER-
Disinflation
,Disinflation is considered a slowing down in the increase in the level of
prices. A significant decline in the general level of prices is referred to as
deflation. On the other hand, inflation is an increase in the level of prices.
Expansion is the phase of the business cycle during which inflation is a
characteristic.
A broker-dealer is underwriting an initial public offering (IPO) for a company
that will be exchange-listed. The broker-dealer continues to deliver
prospectuses: - ANSWER-For 25 days after the deal has closed
For the buyer of an option, the premium paid is considered the: -
ANSWER-Maximum risk
Which of the following is NOT a type of unsystematic risk? - ANSWER-
Market risk
In a limited partnership, a general partner's minimum participation in profits
and losses is: - ANSWER-1%
In a 529 plan, can an individual be both the donor and the beneficiary? -
ANSWER-Yes, if the person is of legal age
A limited partner would be in jeopardy of losing her limited liability if the
partner: - ANSWER-Assisted in the decision of which properties to acquire
Limited partners have the right to receive their portion of income and
losses, examine books and records, and make loans to the partnership. If
they get involved in the management of the program, such as deciding
which properties to acquire, they could be considered general partners and
lose their limited liability.
Which of the following is NOT a characteristic of preferred stock? -
ANSWER-It carries voting rights
, Under what circumstances may a husband and wife both be custodians in
one minor's account? - ANSWER-Under no circumstances
A French company would like to have its stock traded in the U.S. securities
markets. This would most likely be accomplished through the issuance of: -
ANSWER-American Depositary Receipts
A previously registered person was convicted of a felony 14 years ago and
has served out his sentence in federal prison. If he's now seeking
employment as a registered representative, he should be informed that: -
ANSWER-He may be hired as a registered representative
A convicted felon is barred from the securities business for 10 years from
the time of conviction. This type of ban is referred to as a statutory
disqualification. Since the conviction was more than 10 years ago, the
person may be hired as a registered representative. There are no special
restrictions concerning registration and compensation of the person who
was previously subject to statutory disqualification.
A U.S. Treasury bond is selling in the market at 95.18. The dollar value of
this bond is: - ANSWER-$955.62
U.S. Treasury bonds are quoted in full points and 32nds of a point. A T-
bond quote of 95.18 represents 95 18/32. By converting the fraction to a
decimal, the quote becomes 95.5625 percent of the par value of $1,000.
$1,000 x 95.5625% = $955.62.
On Thursday October 7th, a customer purchases 1,000 shares of stock
which is listed on the NYSE. The trade would settle on: - ANSWER-
October 11th
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