Exam (elaborations)
SIE Series 6 Exam 66 Questions with Verified Answers,100% CORRECT
- Course
- Institution
SIE Series 6 Exam 66 Questions with Verified Answers
[Show more]
Content preview
SIE Series 6 Exam 66 Questions with Verified Answers12b-1 Fee - CORRECT ANSWER a fee that enables the cost of marketing, to all
existing fund shareholders.
The maximum 12b-1 fee under FINRA rules is .75% of net assets
cannot call a fund a no-load if the 12b-1 exceeds .25% of net assets
Ask Price - POP - CORRECT ANSWER Price at which a market maker will sell 100
shares to public at the next computed net asset value plus a sales charge
AMT - CORRECT ANSWER Alternative minimum tax - tax code that attempts to
make high income taxpayers that use a large amount of tax deductions to reduce
their taxable income pay a fair tax 26-28%
ADR's - CORRECT ANSWER American depository receipts - registered and listed
receipts held by banks such as J.P. Morgan & Chase of foreign corporate securities
bought overseas that trade like any other stock
Asset Allocation Fund - CORRECT ANSWER A mutual fund that invests in a variety
of asset classes such as foreign securities, domestic U.S. securities (common
stocks, preferred stocks, bonds, and money market instruments), real estate,
gold, and other precious metals.
Authorized Stock - CORRECT ANSWER The legal number of stock a corporation can
issue
BA's - CORRECT ANSWER Bankers Acceptance - a money market instrument used
to finance imports and exports
Best Efforts Underwriting - CORRECT ANSWER an investment banker committing
to act as a selling agent assuming no financial risk "makes best efforts to sell"
Bid Price - NAV - CORRECT ANSWER Price at which a market maker will buy 100
shares from the public at the net asset value
, Blend Fund - CORRECT ANSWER a mutual fund that invests in both growth and
value stocks
Blue-chip Stock - CORRECT ANSWER Securities issued from the largest,
consistently profitable american companies. "steady growth and dividends"
Bond - CORRECT ANSWER long term debt security issued by a corporation,
government, or municipality that pays a fixed or variable interest rate semi
annually until maturity which the face value is payed back to the investor.
Bond Indenture - CORRECT ANSWER Written agreement between the issuer and
investor stating the terms of the bond such as the rate of interest, repayment
schedule, and the protections of the bond holder.
Book Entry - CORRECT ANSWER the way bonds, mutual funds, and equity
securities are issued.the record of ownership is kept by the Transfer agent, no
physical certificates.
Book Value - CORRECT ANSWER what a company is worth if the business were
terminated. The value after tangible asset's sold and liability's paid off.
Breakpoint - CORRECT ANSWER the dollar amount regulated by FINRA that an
investor must purchase in order to receive a reduced sales charge. Stated in the
prospectus.
Broker - CORRECT ANSWER under the SA1934 a broker/agent is a person who
brings together a buyer and seller of a security and receives a commission.
Dealer - CORRECT ANSWER under the SA1934 a dealer/principal is a firm who
buys and sells securities for its own account and receives the spread
Broker Dealer - CORRECT ANSWER a FINRA member registered with the SEC and
the state in which it does business that can act as either a broker or a dealer in a
securities transaction
Callable - CORRECT ANSWER Bonds or Preferred stock that issuers redeem at a
specified price and date only if interest rates have dropped
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller paulhans. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now