SIE (SIE)

All of the following would be taxed at "earned income" rates under IRS regulations EXCEPT: correct answer: -Interest payments Under the Internal Revenue Code, royalty income from books, plays, or magazine articles, is reported as: correct answer: -earned income Which of the following would be defined as "portfolio income" under IRS regulations? correct answer: -Long term capital gains Royalties received from an oil and gas program are: correct answer: -passive income An inves...

Do the following Investment Companies/Products offer continuous share offering or fixed share counts? Mutual Funds Closed-End Funds UIT ETF correct answer: Mutual Funds: Continuous Closed-End Funds: Fixed UIT: Fixed ETF: Fixed What Term signifies that a share of common stock can be freely transferred, assigned, or delivered to another entity? a) Fungible b)Negotiable c)Portable d)Endorsable correct answer: b - A negotiable security is one that can be freely transferred, assigne...

Regular Way Settlement for Equities correct answer: T + 2 The First Day that a Buyer Buys Stock Without a Dividend correct answer: Ex-Dividend date The Last Day a Buyer Can Buy Stock and Receive the Dividend correct answer: business day before the ex-date When Ex-Dividend Date Happens Relative to the Record Date for Regular Way Trades correct answer: 1 business day before Fixed Rate Equity Security that Responds to Market Conditions like a Bond correct answer: Preferred Stock ...

how are in the money index calls options delivered correct answer: cash qualified distribution correct answer: deductible- excluded from fed income tax nonsystematic risk correct answer: bysiness or selection asset back security correct answer: traded based on average life rather than stated maturity which action is required for BD AML program correct answer: designate AML compliance officer muni accruied interest method correct answer: 30/360 stock exchange member willin...

Convertible Bondholders - Creditors of a corporations Dollar quote - Percentage of par quote Term bonds - Quoted as a percentage of par Series bonds - Same maturity, different dates of issuance Serial bond - Same date of issuance, different maturity Serial bond offering - Single issue date, differing maturities Capital appreciation - Benefit of a zero coupon bond Discount - Par value in excess of purchase price Depreciation - Non-cash expense, loss in value of an asset ...

Under SEC regulation S-P, which of the following information must a firm include in its customer privacy and opt-out notices? correct answer: the policies to protect the security of nonpublic information under industry regulations, an initial purchase of $3,000 of common stock in a margin account requires a cash deposit of correct answer: $2,000, remember $2000 is the MINIMUM requirement DPPs provide correct answer: exposure to non-correlated assets the primary purpose of a syndicate...

What is the U.S. Government agency that has enforcement authority over the U.S. securities markets? correct answer: SEC Both FINRA and the Securities and Exchange Commission (SEC) regulate and have enforcement capability over the U.S. securities markets and market participants. However, the SEC is a government agency, while FINRA is an SRO - a self-regulatory organization under SEC oversight. The Municipal Securities Rulemaking Board is another SRO that creates rules for municipal market ...

What is a "market, not-held" order? correct answer: Customer allows the rep to use her own judgement as to the price and time at which the transactions will be executed What is the taxation for non-qualified variable annuities? correct answer: - Growth distributions are taxed How do you calculate the parity price of a stock? correct answer: Parity Price = Market Value / Conversion Ratio = Market Value / (Par Value/Conversion Price) What is the term to describe rising unemployment a...

Roth 401 (k) and Roth individual retirement account (IRA) plans share which of the following features? correct answer: Qualified distributions are excluded from federal income tax All of the following risks apply to both foreign and domestic debt instruments except: correct answer: Exchange The redemption value of an open-end investment company's shares is based on the: correct answer: NAV computed after the order is received A decline in the gross domestic product (GDP) must last f...

The redemption value of an open-end investment company's shares is based on the: previous offering price previous closing NAV NAV computed after the order is received offering price computed after the order is received correct answer: NAV computed after the order is received The computation of dollar prices and accrued interest on municipal bonds is normal on what calendar basis? 30/360 30/365 Actual/360 Actual/365 correct answer: 30/360 Blue-sky laws are regulated by which of t...