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Andrew, FINRA SIE Exam 2024 - Personal Study Set 423 Questions With Verified Answers,100% CORRECT
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Andrew, FINRA SIE Exam 2024 - Personal Study Set 423 Questions With Verified Answers
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Andrew, FINRA SIE Exam 2024 - Personal Study Set 423Questions With Verified Answers
An investor owns 100 shares of XYZ common stock at the current market price of
$50 per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-
split stock position will be: - CORRECT ANSWER 50 shares at $100 per share
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions? - CORRECT ANSWER
The same stock in a cash account without paying for the stock in full.
Under industry regulations, an initial purchase of $3,000 of common stock in a
margin account requires a cash deposit of: - CORRECT ANSWER $2,000
Upon expiration, all in-the-money S&P 100 Index call options are settled by the
delivery of which of the following? - CORRECT ANSWER Cash
In the event of a stock split, which of the following parties is required to maintain
a record of the shareholders eligible to receive the additional shares? - CORRECT
ANSWER Transfer agent
Which of the following statements is true regarding a customer account held as
tenants in common? - CORRECT ANSWER The ownership of the decedent's assets
is governed by their will or state law.
An associated person who is not a registered representative is permitted to
engage in which of the following activities? - CORRECT ANSWER Provide account
opening forms to a new customer.
Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors? - CORRECT ANSWER Qualified institutional buyers (QIBs)
,The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at: -
CORRECT ANSWER a premium
Which of the following represents the effect of a stock split?The price per share of
common stock decreases - CORRECT ANSWER The price per share of common
stock decreases.
To offer its shareholders a privilege to obtain its shares at a fixed price, which of
the following products does a corporation issue? - CORRECT ANSWER Rights
In a period of low inflation and economic recession, the Federal Reserve is
expected to take which of the following actions? - CORRECT ANSWER Buy bonds
in the open market.
Which of the following communications with the public is considered misleading?
- CORRECT ANSWER Literature providing 10-year performance information to
support predictions of future performance.
Which of the following statements is true regarding the concept of an annuity
contract? - CORRECT ANSWER The kind of annuity selected partly determines the
payment amounts to the annuitant.
Which of the following outcomes are possible for the writer of a cover call
option? - CORRECT ANSWER Profit limited and loss limited.
Which of the following actions is required when a firm receives cash in excess of
$10,000 from one customer in one business day? - CORRECT ANSWER File a
Currency Transaction Report (CTR)
Which of the following responses describes an advantage of index funds? -
CORRECT ANSWER Lower management fees due to passive management of the
fund.
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the
following features? - CORRECT ANSWER Qualified distributions are excluded from
federal income tax
,UTMA accounts are opened under the tax ID of the: - CORRECT ANSWER minor
A registered representative is reviewing the following portfolio:
• 30% ABC Energy Company
• 30% XYZ Health Care Company
• 30% Exchange-traded fund (tracks the S&P 500)
• 10% Money market funds
Which of the following risks is inherent in this portfolio? - CORRECT ANSWER
Nonsystematic
Under a system of statutory voting, a common stockholder has as many votes for
each vacancy on the board of directors as the number of: - CORRECT ANSWER
shares owned by the stockholder
The owner of which of the following products is most exposed to inflationary risk?
- CORRECT ANSWER Treasury bonds
A customer has a cash balance in her account together with long positions in
several securities. She has made no securities transactions in the account during
the past 18 months. How often must the firm send her an account statement? -
CORRECT ANSWER Quarterly
At issue, which of the following debt securities mature in one year or less? -
CORRECT ANSWER Money market instruments
Call protection is most valuable to a bond owner when bond prices are generally:
- CORRECT ANSWER Rising
If a market maker posts a quote of 10.00 - 10.10 [25×10], which of the following
actions is the market maker willing to take? - CORRECT ANSWER Buy 2,500 shares
at $10.00 and sell 1,000 shares at $10.10 ; In this scenario, the market maker is
quoting a bid-ask spread of 10.00 - 10.10 with a size of 25x10, Consequently, the
market maker is prepared to purchase 2,500 shares at $10 per share and sell
1,000 shares at $10.10 per share
, Which of the following security types provides investors with a stated maturity
date, a floating interest rate, and an option to put the security back to a financial
intermediary on a daily or weekly basis? - CORRECT ANSWER Variable rate
demand note
Regular way settlement on Treasury bonds is: - CORRECT ANSWER next business
day
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items except: - CORRECT ANSWER
commissions
A firm is a participant in a public offering. To sell a substantial amount of the
securities to its customers, the firm agrees to repurchase the shares at no less
than the original sales price. Such agreements are: - CORRECT ANSWER prohibited
as fraudulent and manipulative
A company announces a tender offer to its shareholders with the intent to buy a
maximum of 1 million shares of its outstanding stock at $10 per share and sets no
minimum number of shares to be purchased. An investor wants to participate in
this offer and tenders his 1,000 share position. At the close of the offer period,
only 900,000 shares have been tendered. How many, if any, of the investor's
shares will the company purchase? - CORRECT ANSWER 1,000
Direct participation programs (DPPs) provide: - CORRECT ANSWER exposure to
non-correlated assets
What are non-correlated assets? - CORRECT ANSWER In simple terms, assets that
move in the same direction at the same time have positive correlation, while
assets that move in opposite directions have negative correlation. Non-correlated
assets are those that move independently of each other, with a correlation of 0.
When selling a fixed amount of a base currency to purchase a counter currency,
which of the following factors is primarily used to determine how much of the
counter currency the customer will receive? - CORRECT ANSWER The spot
exchange rate
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