SIE Mastery Exam Pack Questions and Answers | 100% Correct Answer | Grade A

Common Stock Ans: Negotiable Not Callable Not Convertible Not Redeemable Common Dividends Ans: Declared Quarterly Paid Quarterly Preferred Stock Ans: Negotiable Callable Convertible Cumulative Participating Preferred Dividends Ans: Paid Semi-Annually Cash Only Equity Ownership of a ...

An underwriting commitment where the underwriter is liable for any unsold securities is a(n): Ans: Firm Commitment underwriting Under the Securities Act of 1933, new issues are not marginable until how many days have elapsed from the effective date? Ans: 30 days Under SEC rules, the purchaser ...

Which of the following activities is permitted during the "cooling off" period? Ans: Accepting an indication of interest from the customer for part of the issue What is permitted during the 20-day cooling off period for an Initial Public Offering? Ans: Road show Private placements offered unde...

A customer sells short 100 shares of ABC stock at $60 and sells 1 ABC Oct 60 Put @ $6. The maximum potential loss is: A. unlimited B. limited C. $6,000 D. $600 Ans: A. If the market rises, the short put expires, and the short stock position must be covered by making a purchase in the mark...

Which of the following may be considered suspicious? Ans: A customer unconcerned about losses A corporate stock transaction occurs regular way on Monday, August 3. Ownership of the securities is recognized as changing hands between buyer and seller on Ans: Wednesday, August 5. (T+2) Your custo...

Which of the following investments typically carries significant liquidity risk? A) T-bills B) Limited partnership C) Listed equities D) Mutual funds Ans: B) Limited partnership Limited partnerships are not freely transferable and have no established secondary market. With an LP, assume you ...

Which statement is TRUE when comparing types of management companies? Ans: Open-end funds are mutual funds while closed-end funds are publicly traded funds Which of the following is NOT part of the secondary market? Ans: Fifth Market The term "publicly traded fund" is the common name for a(n):...

When an issuing company is forced to liquidate its assets, which of the following is true of common stockholders? Ans: They came after bondholders and preferred stockholders. Which financial statement is most like a snapshot? Ans: Balance Sheet What would be evaluated in the feasibility study ...

Regarding delivery for listed option contracts when exercised, which of the following is true? A) Equity options are cash settled in U.S. dollars. B) Equity and index options are settled in U.S. dollars. C) Currency and index options are cash settled in U.S. dollars. D) Currency and equity o...

ABC gold mining company has issued a preferred stock. Dividends on the issue may be paid as: Ans: Cash only A customer buys 100 shares of preferred at $101 per share. The par value is $100. The dividend rate is 8%. Each dividend payment will be: Ans: $400 If interest rates fall, issuers most...

If a corporation's stock price rises to an extremely high level: A trading volume tends to decline and the corporation is likely to split its stock to reduce the market price B trading volume tends to rise and the corporation is likely to split its stock to reduce the market price C tradi...

Common Stock Ans: Negotiable Not Callable Not Convertible Not Redeemable Common Dividends Ans: Declared Quarterly Paid Quarterly Preferred Stock Ans: Negotiable Callable Convertible Cumulative Participating Preferred Dividends Ans: Paid Semi-Annually Cash Only Equity Ownership of a ...

Which statement is TRUE when comparing types of management companies? Ans: Open-end funds are mutual funds while closed-end funds are publicly traded funds Which of the following is NOT part of the secondary market? Ans: Fifth Market The term "publicly traded fund" is the common name for a(n) ...

Which of the following securities is NOT exempt from the Securities Act of 1933? A. Municipal revenue bond issues B. Common carrier issues C. Income bond issues D. U.S. Government bond issues Ans: C. Income bond issues Which of the following activities is allowed prior to the filing of the reg...