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Knopman Marks SIE Exam Questions with Correct Answers.
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Knopman Marks SIE Exam Questions with Correct Answers.
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Knopman Marks SIE Exam Questions with CorrectAnswers
Regular Way Settlement for Equities Correct Answer-T + 2
The First Day that a Buyer Buys Stock Without a Dividend Correct
Answer-Ex-Dividend date
The Last Day a Buyer Can Buy Stock and Receive the Dividend Correct
Answer-business day before the ex-date
When Ex-Dividend Date Happens Relative to the Record Date for
Regular Way Trades Correct Answer-1 business day before
Fixed Rate Equity Security that Responds to Market Conditions like a
Bond Correct Answer-Preferred Stock
Declaration Date Correct Answer-date on which the board declares that
a dividend will be paid, when it will be paid (payable date), and the date
an investor must be on the books to receive the dividend (record date),
and this announcement must be at least 10 business days before the
record date
Dividends in Arrears Correct Answer-missed dividend payments
When Ex-Dividend Date Happens Relative to the Record Date for Cash-
Settled Trades Correct Answer-the business day after the record date
,Adjustments to Price of a Security with Dividends Correct Answer-on
the morning on the ex-date, the price of the security will fall by the
amount of the dividend
Forward Stock Split Correct Answer-more shares for a lower price each
Long-Term Capital Gains Correct Answer-the profits from a sale of
securities that have been held by the investor for more than one year
Long-Term Capital Gains Taxation Correct Answer-taxed at a
preferential rate
Nominal Owner Correct Answer-the registered or legal owner of the
security in name only, as another entity is the beneficial owner, retaining
all rights of ownership
Proxy Statement Correct Answer-disclosures sent to a company's
shareholders prior to corporate vote
Reverse Stock Split Correct Answer-fewer shares for a higher price each
Rights Correct Answer-provide shareholders with the ability to maintain
their proportionate ownership in a company if the company issues
additional shares
,Short-Term Capital Gains Correct Answer-profits from the sale of
securities that have been held by the investor for one year or less
Short-Term Capital Gains Taxation Correct Answer-taxed as ordinary
income
Stock Dividend Taxation Correct Answer-taxed upon the sale of the
shares by the investor, not taxed upon receipt
Street Name Correct Answer-a type of security registration in which the
broker-dealer maintains the customer's securities in the firm's name to
allow for the ease of transfer when securities are bought and sold
Transfer Agent Correct Answer-in charge of recording changes in
ownership of securities and recording the names of registered security
holders
Three Things a Company May Choose to Do with Treasury Shares
Correct Answer-1. held by company
2. reissued to the public
3. cancelled
Event that Turns Common Stock Shares Owned by the Public into
Treasury Shares Held by the Company Correct Answer-company stock
buyback (repurchase)
, Filing Deadline for Form 10-K Correct Answer-within 90 days of a
company's fiscal year-end
Purpose of Pre-Emptive Rights Correct Answer-to avoid dilution
Price at Which Warrants are Issued Correct Answer-with no intrinsic
value, so the exercise price is well below the current market value
The Entity that Issues and Cancels Stock Certificates and Processes
Investor Mailings such as Proxies Correct Answer-transfer agent
The Entity Responsible for Holding Assets and Securities for the
Protection of Investors, and also for Maintaining Certain Investor
Records Correct Answer-custodian
Impact of a Cash Dividend Received on a Common Shareholder's Cost
Basis Correct Answer-nothing as cash dividends do not impact share
cost basis they are taxable as ordinary income
Order of Four Key Dates in the Dividend Payment Process Correct
Answer-1) declaration date 2) ex-dividend date 3) record date 4)
payment date
Income Tax Treatment of Stock Dividend Correct Answer-the investor's
tax basis on each share held is adjusted downward in proportion to the
stock dividend
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