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SIE Series 6 Exam 249 Questions with Verified Answers,100% CORRECT
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SIE Series 6 Exam 249 Questions with Verified Answers
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SIE Series 6 Exam 249 Questions with Verified AnswersOn the 2-year anniversary of their registration and every 3 years thereafter. -
CORRECT ANSWER When must RRs complete the Regulatory Element of
Continuing Education?
True - CORRECT ANSWER True or False: Firm Element Continuing Education
requires BDs to update employees on job and product-related subjects.
U4 - CORRECT ANSWER To apply for a securities license, one must file Form _____
with FINRA.
Action (buy/sell), Amount (quantity), and Asset (security) - CORRECT ANSWER
What three items must be specified on a not held order
A not held order will be considered a day order. - CORRECT ANSWER For how long
may a not held order be maintained?
The Trust Indenture Act of 1939 regulates corporate bond offerings (NOT
municipal or government offerings). - CORRECT ANSWER The Trust Indenture Act
of 1939 regulates ________________ offerings.
state and local tax. - CORRECT ANSWER Though subject to federal tax, interest on
Treasuries is exempt from ________ and ________ tax.
True. The interest is taxed at the federal, state, and local level. - CORRECT
ANSWER True or False: Interest paid on GNMA, FNMA, FHLMC, and SLMA agency
bonds is fully taxable to investors.
new issues. - CORRECT ANSWER The Securities Act of 1933 regulates
_____________.
,Provide investors with full and fair disclosure regarding new issues (prospectus) -
CORRECT ANSWER What is the primary purpose of the Securities Act of 1933?
False - CORRECT ANSWER True or False: The SEC judges an offering's investment
merit and provides approval.
Government/municipal bonds, commercial paper, bankers' acceptances, bank
issues, non-profit and small business issues - CORRECT ANSWER List the securities
that are exempt from registration.
anti-fraud - CORRECT ANSWER Though some securities are exempt from
registration, nothing is exempt from the ____________ provisions of the Act.
35 is the maximum number of non-accredited investors allowed in a Private
Placement. - CORRECT ANSWER ____ is the maximum number of non-accredited
investors allowed in a Private Placement.
Yes, so potential purchasers can provide indications of interest. - CORRECT
ANSWER May a preliminary prospectus (red herring) be sent during the cooling-
off period?
non-binding - CORRECT ANSWER Indications of interest are _______________ on
both the customer and BD.
Return the check to the customer - CORRECT ANSWER What should an RR do if a
client sends a check to purchase securities going through the cooling-off period?
True - CORRECT ANSWER True or False: If a registration statement has not been
filed with the SEC, BDs may not discuss new issue information.
final offering price - CORRECT ANSWER The ____________________ will not
appear in a red herring.
Blue-Sky Laws - CORRECT ANSWER What rules govern the registration of an issue
in any state in which it will be offered?
, true - CORRECT ANSWER True or False: Blue-Sky Laws apply to broker-dealers and
agents operating within a state.
the syndicate. - CORRECT ANSWER In a firm commitment underwriting, unsold
securities are retained by ________________.
the issuer - CORRECT ANSWER In a best-efforts underwriting, unsold securities are
retained by ______________.
All-or-None - CORRECT ANSWER What type of underwriting is cancelled if the
entire issue is not sold?
Mini-max - CORRECT ANSWER What type of underwriting is cancelled if a
specified portion is not sold?
Stand-by - CORRECT ANSWER A ___________ underwriting is used for shares not
purchased through a rights offering.
Stabilization - CORRECT ANSWER ____________ is the only form of price
manipulation allowed by the SEC.
False. Stabilization is designed to support or keep a new issue's price from falling.
- CORRECT ANSWER True or False: Stabilization is designed to artificially raise the
price of a new issue.
public offering price (POP). - CORRECT ANSWER The highest price at which a
stabilizing bid may be placed is the ________________________.
It calls attention to the new issuance of securities and members of the syndicate. -
CORRECT ANSWER What is the purpose of a Tombstone Ad?
What is the purpose of a Tombstone Ad? - CORRECT ANSWER It calls attention to
the new issuance of securities and members of the syndicate.
Secondary Market - CORRECT ANSWER The Securities Exchange Act of 1934
regulates the ____________________.
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