A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is - ANSWER 600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is - ANSWER 7300
Large time deposits of more than $100,000 are considered to be found in what part of th...
SIE practice exam 2022/2023 Questions
and Answers
A customer writes an MMM January 70 put at 6. The maximum potential gain on this
position is - ANSWER 600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is
- ANSWER 7300
Large time deposits of more than $100,000 are considered to be found in what part of
the money supply? - ANSWER M3
By purchasing shares of stock in a company, investors can benefit from which of the
following?
An increase in the price of the shares
An increase in price of the company's debt securities
An increase in the yield of the company's outstanding debt securities
The receipt of profits to be distributed - ANSWER An Increase in price of shares and
The receipts of profit to be distributed
An offering in which one or more stockholders in the corporation are selling all or a
portion of their own shares to the investing public for the first time is known as -
ANSWER a secondary offering
Which of the following is an example of an unsecured debt security?
Debenture
Preferred stock
Mortgage bond
Income bond - ANSWER Debenture and Income bond
Mutual funds that market directly to the public, using no underwriter and charging no
sales charge, are called - ANSWER No load funds
During the cooling-off period, underwriters of new securities may
accept orders to purchase shares
not accept orders to purchase shares
not accept indications of interest regarding potential purchases of shares
accept indications of interest regarding potential purchases of shares - ANSWER not
accept orders to purchase shares and accept indications of interest regarding potential
purchase of shares
The USA PATRIOT Act's required Customer Identification Program is designed chiefly
to prevent
real estate fraud
funding of terrorist activities
use of insider information
money laundering - ANSWER funding of terrorist activity and money laundering
, SIE practice exam 2022/2023 Questions
and Answers
The firm element of a broker-dealer's continuing education requirement must be
undergone by all registered persons who - ANSWER have direct contact with the public
An August 15 call is written at 4. The call expires without being exercised by the owner.
The writer of the call - ANSWER keeps the $400 received when the call was written
A mutual fund can offer all of the following to investors EXCEPT - ANSWER physical
custody of the fund's portfolio cash and securities
In an LP, which of the following is TRUE? - ANSWER The partnership entity is not
responsible for paying taxes on gains
MAS Corporation has enjoyed an extremely profitable year. It has been determined that
those owning the MAS 4% preferred, participating to 6% preferred shares, will receive
the full participating dividend. The participating shareholders will receive an additional
dividend of - ANSWER 2%
A registered representative has a customer buying securities, but rather than paying in
full, the customer wants to borrow some of the money needed for the purchase from the
broker-dealer. It is explained to the customer that in order to borrow the money, there
will be interest payable based on - ANSWER the broker call loan rate
In the dividend disbursement process three of the four critical dates are determined by
the board of directors but one is determined by either FINRA for OTC stocks or the
exchange for listed stocks. Which one is it? - ANSWER ex dividend
An investor owns 500 shares of stock whose current market value is $20 per share. The
stock undergoes a split, after which the investor owns 400 shares. What is the new
price of the investor's stock? - ANSWER $25 per share
Listed options expire on - ANSWER the 3rd Friday of the expiration month
A corporation has issued a single bond having successive maturity dates set from 2020
through 2030. This is known as what type of bond? - ANSWER Serial
An investor discovers that exactly 2 years and 9 months ago, the investor was given
fraudulent information on a security that prompted the investor to sell it. As a result, the
investor lost money. How long does the investor have to bring action? - ANSWER 3
months
While a branch office manager can initially approve an options account for trading, it
must ultimately be approved by - ANSWER the firm's ROP
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