100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Achievable SIE Exam 2024 Questions & Answers 100% Correct!! $15.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Achievable SIE
  4.  
  5. Achievable SIE

Exam (elaborations)

Achievable SIE Exam 2024 Questions & Answers 100% Correct!!
 0 purchase
  • Course
  • Achievable SIE
  • Institution
  • Achievable SIE

issuer - ANSWERan organization that distributes and sells securities to investors security - ANSWERlegal term for investment (stocks, bonds, mutual funds, options, ETFs) equity - ANSWERformal term for ownership two ways to make money on common stock - ANSWER1. capital appreciation/gains 2...

[Show more]

Preview 4 out of 45  pages

Document information

  • October 18, 2024
  • 45
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • achievable sie exam 2024 questions answers 100

Written for

  • Achievable SIE
  • Achievable SIE

Seller

avatar-seller
papersmaster01

Reviews received

Content preview

Achievable SIE Exam 2024 Questions &
Answers 100% Correct!!

issuer - ANSWERan organization that distributes and sells securities to investors



security - ANSWERlegal term for investment (stocks, bonds, mutual funds, options, ETFs)



equity - ANSWERformal term for ownership



two ways to make money on common stock - ANSWER1. capital appreciation/gains

2. cash dividends



retained earnings - ANSWERprofits retained by a company that are often used to expand and
reinforce business operations, NOT paid by dividend



growth companies - ANSWERdirect profits back into operations and do not pay dividends, grow
faster than the general economy



rights of common stockholders - ANSWER- right to pro-rate share of dividends

- right to vote

- right to inspect books and records

- right to maintain proportionate ownership

- right to vote for stock splits

- right to assets upon liquidation

- right to transfer ownership



types of dividends - ANSWER- cash: paid on a per share basis on common stock

- stock: payment of extra shares, same value of position overall

- product: in form of inventory or another company's stock, not common bc taxable regardless of
investor's desire for product

,board of directors (BOD) - ANSWERgroup of individuals voted in by stockholders (one vote per
share), large influence over direction and success of company



statutory vote - ANSWERstockholder applies only the amount of votes they have to each BOD
position being voted on, better for large stockholders



cumulative vote - ANSWERstockholder applies total amount of votes they have to any BOD position
being voted on, better for small stockholders



proxies - ANSWERvoting materials used by investors unable to attend the annual meeting



two dilutive effects on ownership - ANSWERissuance of new shares, issuance of convertible securities



forward stock split - ANSWERincrease numbers of shares, lowers price; same overall value, require
stockholder approval




warrants - ANSWERissued at a fixed exercise price at a premium to the market price, as a
"sweetener" directly from the company during the sale of another security

- no intrinsic value at issuance

- have time value, long-term (typically 5 years +)

- outcomes: exercise, trade, expire



negotiable securities - ANSWERtrade in the secondary market between investors



redeemable securities - ANSWERpurchased directly from the issuer, not another investor



primary distribution - ANSWERsale of securities occurs and proceeds go to the issuer



secondary distribution - ANSWERstock is sold to the public for the first time, but shares were
previously owned by a party other than the issuer (officers or directors)

,types of market within secondary market - ANSWER-first market: listed stocks trade on stock
exchanges

-second market: unlisted stocks trade OTC

-third market: listed stocks trade OTC

-fourth market: institutions trade through ECNs



broker-dealers - ANSWERfinancial companies that primarily help their customers buy and sell
securities



introducing brokers - ANSWERsmaller broker-dealers that primarily maintain relationships with
customers and facilitate their trades



clearing brokers - ANSWERlarge broker-dealers that maintain custody, process orders, and provide
clearing services in addition to facilitating trades for their customers; acts as intermediary between
investors and clearinghouses

reverse stock split - ANSWERdecrease number of shares, raise price; same overall value, require
stockholder approval



order of rights to assets upon liquidation - ANSWER1. unpaid wages

2. unpaid taxes

3. secured creditors (lien)

4. unsecured creditors (no lien)

5. junior unsecured creditors

6. preferred stockholders

7. common stockholders

*lien: right to property if a loan can't be repaid



transfer agent - ANSWERmaintains book of stockholders, issues and redeems shares when a
transaction occurs, distributes proxies and dividends to stockholders



types of shares - ANSWERauthorized, issued, outstanding, treasury



rights - ANSWERpre-emptive right: right to purchase new shares at a fixed price before they're
publicly offered (to maintain percent ownership without dilution)

, - have intrinsic value at issuance

-little time value, short term (90 days or less)

-outcomes: exercise, trade, expire




clearinghouse - ANSWERan organization responsible for ensuring a trade is properly finalized,
ensures buyers deliver cash and sellers deliver securities



settlement types - ANSWERregular-way: two business days after trade

cash: same day if executed by 2:30 pm



selling short - ANSWERselling borrowed securities, bearish, unlimited risk




stock: one business day prior to record date

cash: day after payable date



controlled by NYSE for NYSE trades, controlled by FINRA for OTC market



payable date - ANSWERwhen dividend is paid to shareholders, controlled by BOD, reportable to IRS
on this date



Financial Industry Regulatory Authority (FINRA) - ANSWERa self-regulatory organization (SRO) that is
empowered to enforce laws and regulations in finance



American depositary receipts (ADRs) - ANSWERUS-registered receipts for foreign investments
created by domestic financial firms with foreign branches, traded in US dollars in US markets

-subject to currency exchange risk

-no voting or preemptive rights

- dividends paid in USD

-foreign gov't tax withholding creates a US tax credit

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 papersmaster01. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $15.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

66184 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$15.99
  • (0)
Add to cart
Added