1 SIE Practice Exam Questions and Answers Already Passed Which type of shareholder voting method ensures that each share counts as one vote and requires that votes be distributed evenl y among all candidates? ✔✔Statutory voting What is the term for the market where securities listed on exchanges are traded directly over -the-
counter, providing large institutional investors with direct transaction options, liquidity, and privacy? ✔✔Third market If an investor sells a naked call option on Omikron and receives a $250 premium, what is the significant risk associated with this strategy? ✔✔The potential for unlimited losses Which legislation was responsible for the creation of the SEC and endowing it with comprehensive authority over the securities sector? ✔✔Securities Exchange Act of 1934 2 What is the name of the free service provided by FINRA that helps users check the backgrounds of brokers, brokerage firms, and inve stment advisers? ✔✔BrokerCheck What functions does the Federal Reserve Board perform? ✔✔It sets policies related to monetary matters but does not handle tax regulations What is the term for an offer allowing current shareholders to purchase additional shares in proportion to their existing holdings? ✔✔Rights offering How is the difference between a bond’s market price and its conversion value known? ✔✔Convers ion premium What criteria must an individual fulfill to be required to register as an investment adviser? ✔✔The individual must offer securities advice They must be in the business of providing such advice They must be compensated for their advisory services
counter, providing large institutional investors with direct transaction options, liquidity, and privacy? ✔✔Third market If an investor sells a naked call option on Omikron and receives a $250 premium, what is the significant risk associated with this strategy? ✔✔The potential for unlimited losses Which legislation was responsible for the creation of the SEC and endowing it with comprehensive authority over the securities sector? ✔✔Securities Exchange Act of 1934 2 What is the name of the free service provided by FINRA that helps users check the backgrounds of brokers, brokerage firms, and inve stment advisers? ✔✔BrokerCheck What functions does the Federal Reserve Board perform? ✔✔It sets policies related to monetary matters but does not handle tax regulations What is the term for an offer allowing current shareholders to purchase additional shares in proportion to their existing holdings? ✔✔Rights offering How is the difference between a bond’s market price and its conversion value known? ✔✔Convers ion premium What criteria must an individual fulfill to be required to register as an investment adviser? ✔✔The individual must offer securities advice They must be in the business of providing such advice They must be compensated for their advisory services
