examfx sie exam and practice exam newest actual ex
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EXAMFX SIE EXAM AND PRACTICE EXAM
NEWEST ACTUAL EXAM COMPLETE 300
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
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
What is the only form of advertisement permitted by the Securities and Exchange Act
of 1933 during the cooling-off of a new issue? - ANSWER Tombstone
A trade between two institutions executed without an intervening broker/dealer would
take place in what market? - ANSWER The Forth Market
What type of prospectus may be distributed during the cooling-off period of a primary
offering? - ANSWER Red Herring
In what type of offering the security sale proceeds go to a party other than the issuer,
such as a major shareholder or another corporation? - ANSWER Secondary offering
When a security is listed, it means that it trades on what? - ANSWER An exchange
Which Act was designed to prevent fraud in the issuing of securities? - ANSWER
The Securities Act of 1933
How long is the time period granted to an unseasoned issuer to complete a shelf
offering? - ANSWER Two years
What is the term for a limit order that must be filled in its entirety or not at all? -
ANSWER All of None (AON)
What terms refers to the first time an issuer offers shares to the public? - ANSWER
Initial Public Offering (IPO)
Reg. D of the Securities Exchange Act of 1933 allows a private placement to be sold
to what number of accredited investors? - ANSWER Unlimited
The rate that the Federal Reserve charges member banks for overnight loans is
called the: - ANSWER Discount Rate
What kind of economic indicator is the S&P500 Index? - ANSWER Leading indicator
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