A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is - ANSWER 600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is - ANSWER 7300
Large time deposits of more than $100,000 are considered to be found in what part of th...
SIE practice exam Questions &
Answers(RATED A)
A customer writes an MMM January 70 put at 6. The maximum potential gain on this
position is - ANSWER 600
Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is
- ANSWER 7300
Large time deposits of more than $100,000 are considered to be found in what part of
the money supply? - ANSWER M3
By purchasing shares of stock in a company, investors can benefit from which of the
following?
An increase in the price of the shares
An increase in price of the company's debt securities
An increase in the yield of the company's outstanding debt securities
The receipt of profits to be distributed - ANSWER An Increase in price of shares and
The receipts of profit to be distributed
An offering in which one or more stockholders in the corporation are selling all or a
portion of their own shares to the investing public for the first time is known as -
ANSWER a secondary offering
Which of the following is an example of an unsecured debt security?
Debenture
Preferred stock
Mortgage bond
Income bond - ANSWER Debenture and Income bond
Mutual funds that market directly to the public, using no underwriter and charging no
sales charge, are called - ANSWER No load funds
During the cooling-off period, underwriters of new securities may
accept orders to purchase shares
not accept orders to purchase shares
not accept indications of interest regarding potential purchases of shares
accept indications of interest regarding potential purchases of shares - ANSWER not
accept orders to purchase shares and accept indications of interest regarding potential
purchase of shares
The USA PATRIOT Act's required Customer Identification Program is designed chiefly
to prevent
real estate fraud
, funding of terrorist activities
use of insider information
money laundering - ANSWER funding of terrorist activity and money laundering
An investor owning 400 shares of CDS stock receives notice that the stock will be split.
When the split is complete, the customer owns 600 shares of stock. The split must have
been - ANSWER a forward, uneven split
Each SRO functions under the SEC's oversight and is accountable to the commission
for enforcing federal securities laws. While the MSRB regulates all matters related to the
underwriting and trading of state and municipal securities, it does not have enforcement
powers of its rules. Which of the following does the MSRB rely on for enforcement of
these rules? - ANSWER Financial industry regulatory authority
Under what circumstances could a broker-dealer firm share in a financial loss with a
customer? - ANSWER If the loss was due to an error on the part of the firm
Under the Uniform Transfers to Minors Act (UTMA) a custodian has control over the
account and can do each of the following EXCEPT - ANSWER sell short and write
uncovered call options
An individual is solicited with a cold call made by a registered representative. He tells
the representative he is not interested in this investment or in making any future
investments. Which of the following actions is required by the Telephone Consumer
Protection Act of 1991? - ANSWER No calls may be made to the prospect by anyone at
the firm
Which of the following are TRUE regarding mutual fund sales charges?
They are used to defray fund expenses, such as operating costs and salaries.
They are set by the fund's transfer agent.
They are not an expense to the fund, but to the investor.
They are used to compensate the fund's underwriter and sales representatives. -
ANSWER They are not an expense to the fund, but to the investor and they are used to
compensate the fund's underwriter and sales representatives
An investor anticipates that a fall in interest rates is imminent. This investor, now
wanting to purchase bonds in order to lock in interest income, would likely buy -
ANSWER noncallable bonds
Which of the following describes the results of a 1 for 2 reverse stock split? - ANSWER
Half as many shares at twice the original price
Associated persons or registered representatives who want to work outside of their
existing employment with their current broker-dealer may do so if they provide prior
written notice to the member. In which of the following would notice not be required? -
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