SIE Final Exam Questions and Answers Already Passed
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Module
SIE
Institution
SIE
SIE Final Exam Questions and Answers
Already Passed
Which division of a brokerage firm helps a corporation with the planning and timing of a stock
offering and also supports the underwriting process?
The investment banking department
If a customer is using an online-focused discount bro...
1 SIE Final Exam Questions and Answers Already Passed Which division of a brokerage firm helps a corporation with the planning and timing of a stock offering and also supports the underwriting process? ✔✔ The investm ent banking department If a customer is using an online -focused discount broker -dealer and incurs a commission, what role is the firm most likely fulfilling? ✔✔ Acting as an agent What is a true aspect of a prime broker's services? ✔✔ It can handle both the execution and clearing of trades and might offer securities lending to hedge funds. What does the third market involve? ✔✔ The trading of securities that are listed on an exchange but conducted in the over -the-
counter (OTC) market 2 When ABC Brokerage acquires 600 shares from a client and adds them to its own holdings, what function is it performing? ✔✔ Acting as a dealer How does an investment advisory firm usually charge its clients? ✔✔ By applying a fee based on the total assets under management What kind of fee does a broker -dealer charge when operating in an agency role? ✔✔ A commission How is the term "dark pool" best described in the context of equity trading? ✔✔ A venue where investors trade anonymously without displaying quotes publicly Which statement about clearing corporations is NOT correct? ✔✔ They do not handle automated changes in ownership records for securities. What does the Pink Marketplace display? ✔✔ It lists market makers for stocks not listed on major exchanges like the NY SE or Nasdaq. 3 Which entity provides clearing services for equity transactions? ✔✔ The National Securities Clearing Corporation (NSCC) If a market maker shows a bid of 23.50 and an offer of 23.70 for a stock, what does this imply? ✔✔ The market maker buys shares at 23.50 and sells them at 23.70 What is the term for an account where a broker -dealer executes transactions but the processing firm does not know the identities of the clients? ✔✔ An omnibus account Which activity is typically NOT performed by t he investment banking department of a broker -
dealer? ✔✔ Buying and selling securities for both its own account and that of its clients What is the name of the market where an issuer raises funds by selling securities directly to investors? ✔✔ The primary market 4 Which organization aims to enhance the volume of securities transactions by using a book -entry system instead of physical certificates? ✔✔ The Depository Trust & Clearing Corporation (DTCC) Who does a municipal advisor typically provide guidance t o? ✔✔ A local municipality planning to issue new securities A broker -dealer is clearing its trades through another broker -dealer but is not disclosing specific information regarding its clients. Who is responsible for maintaining the account records? ✔✔The introducing broker -dealer. Which of the following statements is FALSE regarding a broker -dealer acting as a market maker in a stock? ✔✔It makes money by charging commissions for executing transactions A customer sells 500 shares of stock to a broker -dealer that makes a market in the stock. The broker -dealer acted in a(n): ✔✔Principal capacity and charged the customer a markdown
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