SIE Practice Exam
Which corporate voting procedures entitles a shareholder to one vote per share, and votes must be
divided evenly among the candidates being voted on? correct answersStatutory voting
What market refers to the trading of exchange-listed securities in the over-the-counter market? These
trades allow institutional investors to trade blocks of securities directly, rather than through an exchange,
providing liquidity and anonymity to buyers. correct answersThird market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding the investors
position? correct answersThe investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of the securities
industry? correct answersSecurities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the professional backgrounds
of brokers and brokerage firms, as well as investment advisor firms and advisors? correct
answersBrokerCheck
The Federal Reserve Board performs what actions? correct answersIt sets monetary policy, but does not
set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a correct answersRights
offering
The difference between a bond's price and the conversion parity price is referred to as correct
answersconversion premium
An individual who meets what criteria must register as an investment adviser? correct answersThe
individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
, The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to the normally
specified rate, as well as an additional dividend based on a specific predetermined condition is called a
correct answersparticipating preferred stock
Profit sharing plans have what characteristic? correct answersthey can be invested entirely in company
stock
What is true regarding the Central Registration Depository (CRD)? correct answersIt was developed by
NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a single, nationwide
computer system
Its computerized database contains the licensing and disciplinary histories on more than 650,000
securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms? They
operate both manually and electronically to facilitate price discovery during market opens, closes, and
during periods of trading imbalances and instability. correct answersDesignated Market Makers
If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would be
needed to be classified as an economic depression? correct answers3 quarters
What is a correct reason to purchase a particular investment for a client's portfolio? correct answersBlue
chip common stocks because they provide a hedge against inflation
An unconditional promise to pay a sum of money to a payee, either at a fixed or determinable future
time, under specific terms is called a correct answersPromissory note
A trade surplus results from correct answersa country exporting more than it imports
Which corporate voting procedures entitles a shareholder to one vote per share, and votes must be
divided evenly among the candidates being voted on? correct answersStatutory voting
What market refers to the trading of exchange-listed securities in the over-the-counter market? These
trades allow institutional investors to trade blocks of securities directly, rather than through an exchange,
providing liquidity and anonymity to buyers. correct answersThird market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding the investors
position? correct answersThe investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of the securities
industry? correct answersSecurities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the professional backgrounds
of brokers and brokerage firms, as well as investment advisor firms and advisors? correct
answersBrokerCheck
The Federal Reserve Board performs what actions? correct answersIt sets monetary policy, but does not
set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a correct answersRights
offering
The difference between a bond's price and the conversion parity price is referred to as correct
answersconversion premium
An individual who meets what criteria must register as an investment adviser? correct answersThe
individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
, The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to the normally
specified rate, as well as an additional dividend based on a specific predetermined condition is called a
correct answersparticipating preferred stock
Profit sharing plans have what characteristic? correct answersthey can be invested entirely in company
stock
What is true regarding the Central Registration Depository (CRD)? correct answersIt was developed by
NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a single, nationwide
computer system
Its computerized database contains the licensing and disciplinary histories on more than 650,000
securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms? They
operate both manually and electronically to facilitate price discovery during market opens, closes, and
during periods of trading imbalances and instability. correct answersDesignated Market Makers
If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would be
needed to be classified as an economic depression? correct answers3 quarters
What is a correct reason to purchase a particular investment for a client's portfolio? correct answersBlue
chip common stocks because they provide a hedge against inflation
An unconditional promise to pay a sum of money to a payee, either at a fixed or determinable future
time, under specific terms is called a correct answersPromissory note
A trade surplus results from correct answersa country exporting more than it imports
