SIE Exam Greenlight Exam 1 Questions with Verified Answers
11 views 0 purchase
Course
SIE Greenlight
Institution
SIE Greenlight
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 tic...
SIE Exam Greenlight Exam 1 Questions with Verified Answers
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
Regular-way settlement on transactions in equity securities settle two business days after the trade date. Monday October 11th is two business days after the trade date.
The tendering of equity securities is permitted if an investor is:
Long investment-grade, non-convertible securities
Long call options that have been exercised
Long a convertible security that has not been tendered for conversion
In possession of the securities based on having borrowed them - Answer- II and III only
Equity securities may be tendered only if the investor is either long the stock or long an equivalent security. Equivalent securities include rights, warrants, and convertible securities which are issued by the company that is the subject of the tender offer. The key is that all of these securities are immediately convertible into, or exchangeable or
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 millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
