SIe practice exam questions & answers 2023/2024
The Securities & Exchange Commission (SEC) was created by Congress in
A 1929
B 1933
C 1934
D 1940 - ANSWER-1934
The Act of '34 created the SEC.
The term 'disclaimer' is most often associated with
A The fact that no agent can ...
SIe practice exam questions & answers
2023/2024
The Securities & Exchange Commission (SEC) was created by Congress in
A 1929
B 1933
C 1934
D 1940 - ANSWER-1934
The Act of '34 created the SEC.
The term 'disclaimer' is most often associated with
A The fact that no agent can guarantee a customer against loss
B The fact that unregistered securities are more risky than registered ones
C The fact that the government cannot guarantee the accuracy of the information in a prospectus
D None of the above - ANSWER-The fact that the government cannot guarantee the accuracy of the
information in a prospectus
,The SEC reviews the information in a registration statement, it does not approve or disapprove of the
information, nor does it guarantee the accuracy of the information disclosures. Therefore no sales agent
can say to a prospect that these are 'government approved' securities
SIPC, the securities investor protection corporation is:
A) An insurance entity which protects investors investments again market losses up to $500,000
B) An insurance entity which protects investors investments against losses up to ½ million dollars in
market value in the event of broker-dealer bankruptcy
C) A Congressional guarantee against losses in the securities markets
D) None of the above - ANSWER-None of the above
SIPC was set up to protect customer ACCOUNTS in the event of a broker-dealer bankruptcy, not protect
investments against loss. Be careful of the wording in this question. Cash & securities in customer
accounts are 'insured' up to $500,000 in the event the B/D goes bankrupt and the cash and securities
can't be located and properly returned to the customer.
In most cases, Federal Securities Laws:
A Supersede State securities laws
B Are subordinate to State securities laws
C Are given the same weight as State securities laws
D None of the above - ANSWER-Supersede State securities laws
, : Federal securities laws typically supersede State laws.
Which of the following are not considered money market securities?
A) T-bills
B) Commercial Paper
C) Reverse Repos
D) ADRs - ANSWER-ADRS
: Since the 'money market' includes short term debt instruments only, and since ADRs represent
ownership (equity) in foreign stocks, ADRs are not debt
When a corporation goes public, it is issuing:
A Common stock
B Preferred stock.
C Convertible bonds
D Any of the above - ANSWER-Common stock
Going public means sharing equity ownership (common stock) with public investors, for the first time
(Initial public offering, IPO).
The term 'issuer' most often refers to:
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