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STC SIE Final Exam Type Questions And Answers Solved 100% Correct!!
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STC SIE Final Exam Type Questions And Answers Solved 100% Correct!!
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Name: Score:167 Multiple choice questions
Term 1 of 167
Which of the following approvals is required before a municipality can begin making payments on
a moral obligation bond?
Approval by a majority of legal age voters
Approval by the state legislature
Approval by the bond trustee
DApproval by the appropriate state agency
Term 2 of 167
Which of the following often provides capital to start-up businesses?
Mutual funds
ETFs
Private equity funds
ETNs
,Definition 3 of 167
Report information concerning the complaint to its SRO on a quarterly basis
Member firms are required to report statistical and summary information regarding customer
complaints to the appropriate SRO on a quarterly basis. If the complaint from a customer involves
theft, forgery, or misappropriation of funds, the firm must promptly notify the SRO.
A customer buys a 6 3/4% bond at 101 3/4. The yield-to-maturity on the bond is:
A customer wants to save for retirement for both himself and his spouse by funding Roth
IRAs. The customer's spouse does not work and the customer's $103,000 annual salary is the
couple's only income. In total, how much can the customer contribute to their Roth IRAs?
A customer buys a May S&P 500 call option with a strike price of 4000 and pays a premium
of $300. On the May expiration date, if the S&P 500 closes at 4005, what will the customer
realize?
A customer lost $14,000 on a new issue and filed a complaint with his registered
representative. The RR's firm provided the customer with a written response and, although
the customer didn't receive any reimbursement, he was satisfied with the response. The firm
is required to:
,Term 4 of 167
A mother wants to gift money to her son. If she doesn't want the son to be able to use the money
for living expenses, which of the following accounts is the most beneficial?
A Trust account
B 529 plan
C Joint Account
D Managed fee based account
Trust account
Municipal general obligation bonds
Mutual funds
Employees of broker-dealers who intend to open outside accounts for the purpose of
executing securities transactions are required to obtain the prior written consent of their
firm. However, the requirements of this rule do not apply to accounts that are limited to
transactions involving redeemable investment company securities (mutual fund shares),
unit investment trusts, variable contracts, or 529 plans.
The general level of interest rates
Term 5 of 167
Which of the following is the BEST rationale for why a mutual fund charges a redemption fee?
To discourage investors from redeeming shares too quickly
To compensate salespersons
To compensate the investment adviser
To encourage investors to sell their shares
, Term 6 of 167
An individual who sells preferred stock must deliver the shares within:
Indexing
Making adjustments to the investments in a portfolio based on changes that are made to an
market index or average is referred to as indexing. Asset allocation is balancing the
contents of a portfolio based on the risk tolerance and investment objectives of a client.
Sector rotation is an active strategy that involves moving money from one industry to
another to beat the return in the market. Dollar-cost averaging follows a regular schedule
of investing the same amount of money as the market fluctuates. This avoids timing the
market and may result in the average cost per share being less than the average price per
share.
Issuers
A call provision allows the bond issuer to redeem its outstanding bonds before they reach
maturity. The benefit to the issuer is that, if the bond is called, it's no longer required to
make periodic interest payments.
The firm files for bankruptcy and ceases doing business.
T+2
Settlement for corporate securities is two business days after the trade date, which is also
referred to as T + 2. (17558)
Term 7 of 167
If market interest rates increase, the prices of outstanding bonds:
Will decrease
Liquidity needs
Will not change
Will increase
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