SIE Exam Unit 1 Questions & Answers 2023/2024
The securities industry's primary regulatory body and created under what act? - ANSWER-SEC, Securities Exchange Act of 1934
Function under the SEC's oversight and is accountable to the Commission for enforcing federal securities laws, as well as s...
SIE Exam Unit 1 Questions & Answers
2023/2024
The securities industry's primary regulatory body and created under what act? - ANSWER-SEC, Securities
Exchange Act of 1934
Function under the SEC's oversight and is accountable to the Commission for enforcing federal securities
laws, as well as supervising securities practices within an assigned jurisdiction. - ANSWER-Self Regulatory
organizations (SRO)
what are the largest SROs - ANSWER-Financial Industry Regulation Authority (FINRA), Chicago Board
Options Exchange (CBOE), Municipal Securities Rulemaking Board (MSRB)
Members pay assessments into a general insurance fund that is used to meet customer claims in the
event of a broker-dealer bankruptcy. - ANSWER-Securities Investor Protection Act and Corporation (SIPC)
All BD registered with the SEC must be SIPC members except which three? - ANSWER-1. banks deal with
munis, 2. firms deal with US govt securities 3.firms deal with redeemable investment co securities
has a net worth of $1 million or more or has had an annual income of $200k or more in each of the two
most recent years - ANSWER-accredited investor
this type of BD offers all types of investment products ie stocks, bonds, mutual funds, options, and many
others - ANSWER-full service BD
this BD incorporates proprietary trading, where they trade in the account of the BD this is known as what
- ANSWER-market making
this firm carries customer accounts and accepts funds and securites from customers - ANSWER-carrying
firm
, this type of BD has the ability to do trade executions, clear and settle transactions, take custody of
customer funds and securities, and handle all back office tasks - ANSWER-carrying firm
carrying firms are required to maintain a higher _____ than that of firms who do not accept custody of
funds or securities - ANSWER-net capital
this type of BD must segregate customer funds and securities held in their custody from the firms capital
and securities - ANSWER-Carrying firms
this type of BD introduces its customers to a clearing firm - ANSWER-fully disclosed or introducing BD
an introducing firm may receive customer checks but they must be made out to who - ANSWER-the
clearing firm
carrying or clearing firms who clear their own transactions - ANSWER-full service BD
investment advisor act of what year - ANSWER-1940
Any entity, individual or institution, willing to accept the risk of holding a particular security in its own
account to facilitate trading and provide liquidity in that security is known as - ANSWER-a market maker
or trader
An institution or a person responsible for making all investment, management, and dis-tribution
decisions in an account maintained in the best interests of another is known as - ANSWER-custodian
an introducing firm may recieve customer checks, but they must be made out to who? - ANSWER-the
clearing firm
firm sometimes referred to as "full service firms" are also know as what? and what do they do on their
own? - ANSWER-carrying or clearing firms, clear their own transactions
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