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FINRA SIE Practice Exam 140 Questions with Verified Answers,100% CORRECT
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FINRA SIE Practice Exam 140 Questions with Verified Answers
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FINRA SIE Practice Exam 140 Questions with VerifiedAnswers
What is true about treasury stock? - CORRECT ANSWER It is issued stock that has
been subsequentially reacquired by the corporation
Under the securities act of 1933 Registration is required for - CORRECT ANSWER
American depository receipts (ADRs)
Under normal circumstances, a customer's letter of intent on a mutual fund
purchase is valid for what maximum period of time? - CORRECT ANSWER 13
months
A firm is a participant in a public offering to sell a substantial amount of 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
In what situation is an employee of a public company permitted to trade upon
information without violating insider trading laws? - CORRECT ANSWER An
independent securities analyst explains to the employee why the earnings for the
company next quarter could be marketably poor than expected
Roth 401(k) and Roth Individual Retirement Account (IRA) plans share what
feature? - CORRECT ANSWER Qualified distributions are excluded from federal
income tax
What is the greatest risk in a variable life insurance policy? - CORRECT ANSWER
Market risk
Stability in the value of a debt portfolio is greatest when - CORRECT ANSWER
Maturities of the debt securities are short
, All of the following risks apply to both foreign and domesic debt instruments -
CORRECT ANSWER - Political risk
- Repayment risk
- Interest rate risk
What is true regarding the concept of an annuity contract - CORRECT ANSWER
The kind of annuity selected party determines the payment amounts to the
annutant
What is the essential difference between a primary distribution and a secondary
distribution? - CORRECT ANSWER A primary distribution involves a sale of newly
issued shares by the issuer, while a secondary distribution involves a sale of
already issued and outstanding shares
A member of a stock exchange responsible for providing liquidity in a security by
being willing to buy and sell at times is known as - CORRECT ANSWER A market
maker
An associated person who is not a registered representative is permitted to
engage and what type of activity? - CORRECT ANSWER Provide account opening
forms to a new customer
What represents the effect of a stock split? - CORRECT ANSWER The price per
share of common stock decreases.
What product is adversely impacted if the issuer's credit rating is downgraded -
CORRECT ANSWER Exchange traded notes
What type of security 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
A broker-dealer is permitted to accept payment for a new issue from a new
customer when the - CORRECT ANSWER Registration is effective
A transaction in which a writer covers a position by purchasing an option is called
- CORRECT ANSWER A closing purchase
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