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SIE TEST QUESTIONS WITH VERIFIED SOLUTIONS
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SIE TEST QUESTIONS WITH VERIFIED SOLUTIONS SIE TEST QUESTIONS WITH VERIFIED SOLUTIONS
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SIE TEST 2024-2025 QUESTIONS WITHVERIFIED SOLUTIONS
The SEC is a federal government agency responsible for all of the following, EXCEPT: -
CORRECT ANSWER Prosecute violators of criminal activity
- this is under the Department of Justice
The SEC is responsible for:
- creating/enforcing penalties for violation of federal securities law
- Protect US investors
- Require issuers to provide full and fair disclosure regarding their securities to investors
Which of the following is the exchange for options trading and the SRO for broker-
dealers engaging in the options market? - CORRECT ANSWER CBOE
- Chicago Board Options Exchange
BFDIC is associated with which of the following? - CORRECT ANSWER Protecting
bank account deposits in the US banks from bankruptcy
Following the execution of a trade, custody of client assets and securities are maintained
by a(n): - CORRECT ANSWER Clearing broker-dealer
The main objectives of the Securities Act of 1933 are to: - CORRECT ANSWER
Provide full and fair disclosures regarding new issues and to prevent misrepresentation
and fraud in the sale of securities
,SIE TEST 2024-2025 QUESTIONS WITH
VERIFIED SOLUTIONS
When an issuer sells securities in a primary offering, the net proceeds are paid to the: -
CORRECT ANSWER Issuer
Which the following underwriting agreements guarantees the issuer of an initial public
offering (IPO) that all of the shares will be purchased? - CORRECT ANSWER Firm
Commitment
Which of the following underwriting agreements allows an underwriter to step in, buy
remaining shares, and then sell those shares to the public? - CORRECT ANSWER
Standby
The cooling-off period is a minimum of _____ days - CORRECT ANSWER 20
An investor owned a stock for 18 months before selling it to another investor. This trade
placed in the: - CORRECT ANSWER Secondary market
Which of the following is considered an electronic trading exchange in the First Market? -
CORRECT ANSWER NASDAQ
Who receives the net proceeds from securities that are sold in the secondary market? -
CORRECT ANSWER Investors
ABC is quoted at 15 - 16 what is the ask? - CORRECT ANSWER 16
, SIE TEST 2024-2025 QUESTIONS WITH
VERIFIED SOLUTIONS
Which of the following terms is NOT associated with the secondary market? -
CORRECT ANSWER Public offering price
- Only in the primary market
All of the following are contained in a confirmation statement, except: - CORRECT
ANSWER Profit or loss on the security position traded
The primary reason investors buy stock in a corporation is to: - CORRECT ANSWER
Financially benefit if the share price increases
Which of the following has the lowest priority claim on assets if a corporation goes
bankrupt? - CORRECT ANSWER Common stockholders
What is the maximum loss for a corporation's stockholder? - CORRECT ANSWER
The value of the investment in the company
How many shares of stock are in a round lot? - CORRECT ANSWER 100
Which type of security must all corporations issue? - CORRECT ANSWER Common
stock
All of the following are true regarding treasury stock, EXCEPT: - CORRECT ANSWER
It has voting rights
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