FINRA SIE Practice Test|| 75 Questions || Correct Answers|| 100% Verified
0 view 0 purchase
Course
FINRA SIE
Institution
FINRA SIE
Upon Expiration, all in-the-money S&P 100 Index call options are settled by the delivery of which of the following? - ANSWER Cash
Which of the following statements is true about treasury stock? - ANSWER It is issued stock that has been subsequently reacquired by the corporation
In the event o...
FINRA SIE Practice Test|| 75 Questions ||
Correct Answers|| 100% Verified
Upon Expiration, all in-the-money S&P 100 Index call options are settled by the delivery
of which of the following? - ANSWER Cash
Which of the following statements is true about treasury stock? - ANSWER It is issued
stock that has been subsequently reacquired by the corporation
In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares? - ANSWER
Transfer Agent
Which of the following actions is required of a broker-dealer's anti-money laundering
(AML) program? - ANSWER Designating an AML compliance officer
A registered representative (RR) wants to participate in a private securities transaction.
Which of the following actions must the RR take? - ANSWER Send written notice to his
supervisor outlining the activity and compensation structure
A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and simultaneously buys
100 shares of ABC stock for $35 per share. The customer will break even when the
stock is selling at what price per share at expiration? - ANSWER $38
The call provision of a bond stipulates which of the following factors? - ANSWER Call
date and call price
When is interest on Treasury notes paid? - ANSWER Semiannually
The owner of which of the following products is MOST exposed to inflationary risk? -
ANSWER Treasury bonds (because it's long-term)
A registered representative (RR) who wants to place a mutual fund advertisement must
obtain written approval from which of the following parties? - ANSWER A registered
principal of the RR's firm
A company announces a tender offer to its shareholders with the intent to buy a
maximum of 1 million shares of its outstanding stock at $10 per share and sets no
minimum number of shares to be purchased. An investor wants to participate in this
offer and tenders his 1,000 share position. At the close of the offer period, only 900,000
shares have been tendered. How many, if any, of the investor's shares will the company
purchase? - ANSWER 1,000 (1,000 x 100 = 100,000 shares; 1 million - 900k = 100k)
, Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in
which the mayor is currently seeking re-election. A municipal finance professional who
resides in the town and works for ABC contributed $200 to the mayor's re-election
campaign 13 months ago. If the employee wants to support the campaign further
without impacting the municipal securities business of the firm, he is permitted to make
Which of the following statements is true regarding the concept of an annuity contract? -
ANSWER The kind of annuity selected partly determines the payment amounts to the
annuitant.
Roth 401(k) and Roth IRA individual retirement account (IRA) plans are share which of
the following features? - ANSWER Qualified distributions are excluded from federal
income tax
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is
valid for what maximum period of time? - ANSWER 13 months
A broker-dealer is permitted to accept payment for a new issue form a new customer
when the: - ANSWER registration is effective
Regular way settlement on Treasury bond is: - ANSWER next business day (T + 1)
Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors? - ANSWER Qualified institutional buyers (QIBs)
A customer is an officer of a company that is involved in some significant changes.
Which of the following corporate affairs would be considered inside information if the
customer shares them with his registered representative? - ANSWER -Pending
transactions
-Top management changes
-Imminent financial liquidity problems
Under FINRA rules, noncash compensation connected with the sale of variable
contracts include... - ANSWER -Gifts
-Meals
-Lodging
Under a system of STATUTORY voting, a common stockholder has as many for each
vacancy on the board of directors as the number of... - ANSWER shares owned by the
stockholder
The redemption value of an open-end investment company's shares is based on the: -
ANSWER NAV computed after the order is received.
Direct participation programs (DDPs) provide: - ANSWER exposure to non-correlated
assets with steady returns
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller shantelleG. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
