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SIE Exam Unit 18 Issues 44 Questions with Verified Answers,100% CORRECT
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SIE Exam Unit 18 Issues 44 Questions with Verified Answers
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SIE Exam Unit 18 Issues 44 Questions with Verified AnswersAll of the following would be required for a discretionary account except
A) the account must receive Financial Industry Regulatory Authority (FINRA)
approval prior to the first trade.
B) a principal at the firm must authorize discretion.
C) all trades must be promptly approved by a principal at the firm.
D) the customer must authorize discretion. - CORRECT ANSWER The account must
receive Financial Industry Regulatory Authority (FINRA) approval prior to the first
trade
Selling long is equivalent to which of the following?
A) Selling to open then buying to close
B) Selling to open
C) Selling short
D) Selling to close - CORRECT ANSWER Selling to Close
When a customer owns a position and then sells that position, that is referred to
as selling _____________ or selling ________ __________ - CORRECT ANSWER
Long, to Close
When a customer _______________ a position and then ______________ that
position, that is referred to as selling long or selling to close - CORRECT ANSWER
Owns, Sells
All of the following are required for a discretionary account except
A) all trades must be promptly approved by a principal at the firm.
B) the customer must authorize discretion.
C) a principal at the firm must authorize discretion.
, D) the account must receive FINRA approval prior to the first trade. - CORRECT
ANSWER The account must receive FINRA approval prior to first trade
Short sellers have
A) limited profit and loss potential.
B) unlimited profit and loss potential.
C) limited profit potential and an unlimited loss potential.
D) unlimited profit potential and limited loss potential. - CORRECT ANSWER
Limited profit potential and unlimited loss potential
Short sellers are _______________ - CORRECT ANSWER Bearish
Because stock could only go down as far as zero, the profit for a
________________ _________________ is limited to the difference between the
price the stock was shorted at and zero - CORRECT ANSWER Short Seller
Meeting the location requirements and the borrowing of securities when a
customer wants to sell short is done by
A) the customer who wants to sell short.
B) the purchaser of the securities being sold short.
C) the customer or entity that the shares will be borrowed from.
D) the broker-dealer on behalf of the short-selling customer. - CORRECT ANSWER
The broker dealer on behalf of the short selling customer
Meeting the location requirements and the borrowing of securities is done by the
back office of the _______________ ________________ on behalf of the short-
selling customer. - CORRECT ANSWER Broker Dealer
Which of the following transactions has the least risk?
A) Buying to open
B) Selling short
C) Short against the box
D) Selling to open - CORRECT ANSWER Short against the box
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