SIE Exam Practice Questions and Answers (100% Pass)
8 views 0 purchase
Course
SIE
Institution
SIE
SIE Exam Practice Questions and Answers (100% Pass)
industrial development revenue bonds - Answer️️ -Industrial development
revenue bonds are a type of taxable municipal security that is issued by a
municipality on behalf of a corporation. Specifically, the municipality will issue to
debt t...
SIE Exam Practice Questions and Answers (100% Pass)
industrial development revenue bonds - Answer✔️✔️-Industrial development
revenue bonds are a type of taxable municipal security that is issued by a
municipality on behalf of a corporation. Specifically, the municipality will issue to
debt to build a facility on behalf of a corporation and then lease that facility to the
corporation. Because the bonds are backed by lease payments made by the
corporation, the debt is the responsibility and credit quality of the corporation.
Which Gov Bond pays monthly interest? - Answer✔️✔️-Ginnie Mae's pay interest
monthly because the underlying mortgages that serve as collateral for the bonds
also pay interest monthly.
What type of fund trades above and below NAV - Answer✔️✔️-A closed end
investment company may trade at a premium or a discount to its net asset value.
A "not-held" order means - Answer✔️✔️-A "market, not-held" order means that the
customer is letting the RR use her own best judgment as to the price and time at
which the transaction will be executed, and will not hold the RR responsible if she
misses the market for a security
non-qualified variable annuity pays taxes on: - Answer✔️✔️-Distributions from non-
qualified variable annuities are subject to tax liability on the amount in excess of
the original contribution (which was funded with after-tax dollars).
Credit risk is best defined as the risk that - Answer✔️✔️-Credit risk is the risk that
the borrower will be unable to make the required payments on the loan to the
lender, including interest and principal. Notice that a borrower does not collect
required payments from a lender, rather, lenders collect payments from borrowers.
Restrictions to those who are in the Specially Designated Nationals list: -
Answer✔️✔️-The Specially Designated National List must be created pursuant to
the USA Patriot Act, and transactions with parties on this list are strictly prohibited.
In a period of stable interest rates, which preferred stock would fluctuate and why?
- Answer✔️✔️-The price of the convertible preferred stock is most likely to fluctuate
in value because the price of the underlying common stock to which the preferred
can be converted will influence the value of the preferred stock itself. Namely, if
the price of the common stock increases, the price of the convertible preferred will
also increase.
What are the limits of trading under a statutory disqualification? - Answer✔️✔️-A
statutory disqualifcation will occur if a registered representative is conviction of
any felony or a securities or fraud related misdemeanor in the past 10 years. Once
statutory disqualified, the individual cannot be associated with a FINRA member
firm unless they receive a waiver from FINRA.
The interest income on federal agency securities is taxed at which levels? -
Answer✔️✔️-All levels
An investor concerned about rising prices would most likely invest in a fixed or
variable maturity? - Answer✔️✔️-Investments in equities generally serve as a hedge
against inflation. Fixed income investments, such as fixed annuities will lose
purchasing power as prices increase. The tax consequence of an investment is not
relevant when considering how to hedge against rising prices.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller OliviaWest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
