How long is the quiet period for an add-on offering or APO - ANSWER3 days following the effective date
Which of the following is NOT true regarding a nonqualified retirement plan?
A. Excess over cost basis is taxed
B. It can discriminate in offering its benefits and selecting participants
C. ...
SIE Exam 2024-2025 Questions &
Answers 100% Correct!!
How long is the quiet period for an add-on offering or APO - ANSWER3 days following the effective
date
Which of the following is NOT true regarding a nonqualified retirement plan?
A. Excess over cost basis is taxed
B. It can discriminate in offering its benefits and selecting participants
C. It needs IRS approval
D. Tax on accumulation is deferred - ANSWERC. It needs IRS approval
In an options contract, which party receives the premium and is obligated to buy the underlying
security at the strike price?
A. Put writer
B. Call holder
C. Call writer
D. Put holder - ANSWERA. Put writer
All the following are considered self-regulatory organizations for the regulation of securities offerings
and trading EXCEPT
A. MSRB.
B. FINRA.
C. CBOE.
D. SEC. - ANSWERD. SEC
All of the following investments are subject to currency exchange risk EXCEPT
A. Foreign stocks.
B. U.S. Treasury Bonds.
C. ADRs (American Depositary Receipts).
D. International Growth Fund. - ANSWERB. U.S. Treasury Bonds
,A corporation has issued 10 million shares of common stock that are currently trading for $5 per
share. There are 2 million shares of treasury stock. What is the total value of outstanding common
stock shares?
A. $8 million
B. $10 million
C. $40 million
D. $60 million - ANSWERC. $40 million
The investment company concept allows the individual investor to...
A. Have a greater claim than other shareholders.
B. Realize a greater return on an investment.
C. Defer taxes by reinvesting distributions in additional shares.
D. Achieve wide diversification with a relatively small investment. - ANSWERD. Achieve wide
diversification with a relatively small investment.
Serial bonds
A. Have a single maturity date.
B. Are savings bonds.
C. Have varying maturity dates.
D. Are issues that matured all at once. - ANSWERC. Have varying maturity dates.
Which of the following is exempt from FINRA Rule 5130, which prohibits the purchase of IPOs by
member firms and associated persons?
A. An associated person who works for a member firm in the selling group
B. An associated person whose limited registration permits selling only investment company
products
C. An associated person who works for a member of the syndicate, but does not plan on selling the
IPO to customers
D. An associated person who works for a member firm not involved in the syndicate - ANSWERB. An
associated person whose limited registration permits selling only investment company products
Why would an investor choose an index fund as a holding in her portfolio?
,A. Active management
B. Lower management fees
C. Stock holdings are frequently bought and sold
D. Guaranteed return - ANSWERB. Lower management fees
An investor owns an emerging market mutual fund that includes investments in a country where the
government was overthrown by the military. This investment is subject to
A. Timing risk.
B. Political risk.
C. Liquidity risk.
D. Regulatory risk. - ANSWERB. Political risk.
According to FINRA rules, members are required to report any violations of laws, rules, and
regulations within how many days?
A. 3 days
B. 10 days
C. 15 days
D. 30 days - ANSWERD. 30 days
Regulation T of the Securities Exchange Act of 1934 gave the power to establish margin requirements
to
A. Issuing corporation.
B. Broker/dealers.
C. Securities Exchange Commission.
D. Federal Reserve Board. - ANSWERD. Federal Reserve Board
Uniform Termination Notice for Securities Industry Registration is also known as
A. Form 10K.
B. Form S-1.
C. Form U4.
D. Form U5. - ANSWERD. Form U5
When a brokerage firm is acting as a dealer, it is acting in the capacity of a/an
, A. Fiduciary.
B. Broker.
C. Principal.
D. Agent. - ANSWERC. Principal
Which member of a stock exchange provides liquidity in a security by being willing to buy and sell at
any time?
A. Registered representative
B. Underwriter
C. Registered principal
D. Market maker - ANSWERD. Market maker
Which of the following would be included in the definition of an investment adviser?
A. A business professor who teaches a class in portfolio management
B. A broker/dealer who charges a fee for analyzing client portfolios
C. An individual who publishes a quarterly newsletter with a model portfolio that includes buy/sell
recommendations
D. An attorney who works with his client on a Chapter 11 re-organization - ANSWERB. A
broker/dealer who charges a fee for analyzing client portfolios
Some securities are exempt from the registration and prospectus requirements of the Securities Act
of 1933. All of the following securities are among this exempt class EXCEPT
A. A security issued by a nonprofit organization.
B. A security offered for sale in only one state.
C. U.S. government securities.
D. Commercial paper that has a maturity not exceeding 270 days. - ANSWERB. A security offered for
sale in only one state.
With respect to the Securities Exchange Act of 1934, which of the following is FALSE?
A. All publicly held companies are required to file an annual report and distribute the report to
shareholders.
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