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EXAMFX SIE PRACTICE | update|COMPLETE MOST TESTED QUESTIONS AND VERIFIED ANSWERS (100% Correct solutions)| GET IT RIGHT!! | ALREADY GRADED A+ In a public offering, officers of the corporation are selling their personal shares along with the IPO of the cor$17.99
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EXAMFX SIE PRACTICE | update|COMPLETE MOST TESTED QUESTIONS AND VERIFIED ANSWERS (100% Correct solutions)| GET IT RIGHT!! | ALREADY GRADED A+ In a public offering, officers of the corporation are selling their personal shares along with the IPO of the cor
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FX SIE
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FX SIE
EXAMFX SIE PRACTICE | update|COMPLETE MOST
TESTED QUESTIONS AND VERIFIED ANSWERS
(100% Correct solutions)| GET IT RIGHT!! | ALREADY
GRADED A+
In a public offering, officers of the corporation are selling their personal shares along
with the IPO of the corporation itself. The sale of shares by ...
EXAMFX SIE PRACTICE | update|COMPLETE MOST
TESTED QUESTIONS AND VERIFIED ANSWERS
(100% Correct solutions)| GET IT RIGHT!! | ALREADY
GRADED A+
In a public offering, officers of the corporation are selling their personal shares along
with the IPO of the corporation itself. The sale of shares by corporate officers is called -
✔✔ANSW✔✔..Secondary
"Secondary" means that proceeds go to an entity other than the issuer; in this case,
that's the officers.
In bankruptcy liquidation what is paid out first? - ✔✔ANSW✔✔..Employee back wages
In compliance with FINRA conduct rules, what determines if a recommendation is
appropriate for a customer? - ✔✔ANSW✔✔..The customer's suitability for the
investment
In order for a limited partnership subscription agreement to become effective, it must be
signed by the investor and - ✔✔ANSW✔✔..The general partner (GP)
In regard to executing trade orders, what kind of order has priority over limit orders? -
✔✔ANSW✔✔..Market order
In the event of a company's liquidation, who has the senior claim over the assets?
A. The preferred stockholders
B. The bondholders
C. The common stockholders
D. None of the above. - ✔✔ANSW✔✔..The bondholders
Preferred stockholders have a senior claim to assets when compared to common
stockholders in the event of a company's liquidation; however, they are subordinate to
those holding debt securities (bondholders). In other words, they have preference over
common.
,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? - ✔✔ANSW✔✔..Secondary
offering
In what type of settlement is the trade date the same as the settlement date? -
✔✔ANSW✔✔..Cash settlement
Members are required to report financial events specifically related to any bankruptcy
that happened within how many years? - ✔✔ANSW✔✔..The past 10 years
Mortgage bonds, equipment trust certificates, and collateral trust bonds are all
examples of what type of bonds? - ✔✔ANSW✔✔..Secured bonds
MSRB rules do not permit I. Bona fide quotes distributed as offers. II. Nominal quotes
distributed as bids. III. Nominal quotes distributed as offers. IV. Nominal quotes
distributed as workouts - ✔✔ANSW✔✔..II and III.
Bona fide quotes are equivalent to firm (binding) quotes and are allowed as bids or
offers. Nominal quotes are subject to confirmation, or nonbinding. They are given as
"workouts" between traders, or are information only and are not allowed as either
binding bids or offers.
Once a red herring (preliminary prospectus) has been issued to a customer, each of the
following activities is permissible EXCEPT
A. Discussing the information in the preliminary prospectus with the customer.
B. Sending the final prospectus to the customer once the registration is effective.
C. Obtaining an indication of interest in the issue from the customer.
D. Guaranteeing the offering price of the issue to the customer. -
✔✔ANSW✔✔..Guaranteeing the offering price of the issue to the customer.
Since the offering price has not yet been determined, it cannot be guaranteed. The word
"guarantee" should always be treated cautiously on the exam.
Open market operations of the FRB cause direct changes in - ✔✔ANSW✔✔..M1. M1 is
a part of the money supply that the Fed regulates through buying or selling
governments and government agencies.
A "Chinese Wall" is
A. A separation between the issuer and the syndicate.
, B. A separation between investment banking and the other functions inside a
broker/dealer.
C. A separation between the trading department and the back office inside a
broker/dealer.
D. A separation between the managing underwriter and the syndicate members. -
✔✔ANSW✔✔..A separation between investment banking and the other functions inside
a broker/dealer
The Chinese Wall separates the investment banking (also called the underwriting
department), which handles inside information, from other departments of the
broker/dealer
A company has been in arrears on dividend payments for three quarters. Which of the
following must get paid before common shareholders can receive a dividend?
A. Convertible preferred
B. Cumulative preferred
C. Callable preferred and Convertible preferred
D. Callable preferred, convertible preferred, and cumulative preferred. -
✔✔ANSW✔✔..Callable preferred, convertible preferred, and cumulative preferred.
All dividend payments must be made to owners of all classes of preferred stock before
common shareholders may receive a dividend. The cumulative feature entitles the
owner to all dividend that were also in arrears.
A convertible preferred stock with a conversion ratio of 4:1 is trading at $100 and is at
parity with the common stock. What is the price of the common stock? -
✔✔ANSW✔✔..$25
A customer who failed to complete payment in 4 business days applied for an extension
but was denied. What action should be taken? - ✔✔ANSW✔✔..Close out the
transaction
A customer who purchases securities in a cash or margin account must pay for the
securities in - ✔✔ANSW✔✔..4 business days
A customer's account would be frozen for 90 days if the cusomter -
✔✔ANSW✔✔..Failed to deliver payment within 4 business days of purchase.
A formal offer to existing shareholders to purchase their stock above the current market
price is what kind of offer? - ✔✔ANSW✔✔..Tender offer
A letter of intent to allow an investor to qualify for sales discounts may be backdated
how many days? - ✔✔ANSW✔✔..90 days
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