SIE (SIE)

when a broker dealer charges a commission on a securities transaction, he is acting as: correct answer: an agent in the event of a stock split, who maintains a record of the shareholders eligible to receive additional shares? correct answer: transfer agent an associated person who is not a registered representative is permitted to engage in what activity? correct answer: provide account opening forms to a new customer what type of security provides investors with a stated maturity da...

Business Cycle Order correct answer: Expansion, Peak, Contraction, Trough Notice Filing correct answer: A method of registering securities at the state level that is only for Federal Covered Securities Downturns in the business cycle or economic contractions are characterized by all of the following correct answer: higher consumer debt rising numbers of bond defaults rising numbers of bankruptcies Which of the following would be associated with loans made to member banks of the Fed...

a company announces a tender offer to its shareholders with the intent to buy a maximum of 1 million shares of its outstanding stock at $10 per share and sets no minimum of shares to be purchased. An investor wants to participate in this offer and tenders his 1000 share position. At the close of the offer period, only 900,000 shares have been tendered. How many, if any, of the investor's shares will the company purchase? a. 0 b. 100 c. 900 d. 1000 correct answer: 1000 Company ABC anno...

To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following product does a corporation issue? correct answer: Rights A customer has a cash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her an account statement? correct answer: Quarterly Broker-dealer ABC seeks to underwrite a municipal securities offering by a ...

FINRA SIE Outline| 107 Questions| With Complete Solutions The Securities Act of 1933 correct answer: The Securities Act of 1933 focused on greater transparency for investors After the stock market crash of 1929, it was passed into law to protect investors. Greater financial transparency and accuracy and less fraud or manipulation. The legislation had two main goals: to ensure more transparency in financial statements so investors could make informed decisions about investments; and t...

What type of risk is unique to a specific industry, business enterprise, or investment type? correct answer: Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? correct answer: Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium correct answer: the cost of an option contract, exp...

In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions? A) Decrease Taxes B) Require banks to increase reserve C) Buy bonds in the open market correct answer: Buy bonds in the open market Under FINRA rules which of the following activities by a registered representative requires written notification to her firm? A) Gambling resulting in winnings in excess of $10,000 B) Driving part time for a transportation netw...

Which stakeholder has first claim priority in a Chapter 11 proceeding? correct answer: Secured Debt Holders What is a firm required to do when receiving cash in excess of $10,000 from one customer in one business day? correct answer: File a Currency Transaction Report If a registered representative drives UBER part time, what is required? correct answer: They must provide written notification to the firm as mandated by FINRA. A customer has a cash balance in her account with long pos...

purpose of securities industry correct answer: matching investors with money to issuers that need that money to finance issuer correct answer: legal entity that sells securities in order to finance its operations (business, governments) ie. us treasury, us gov agencies, foreign governments, state and local governments, corps, banks methods issuers use to raise capital correct answer: 1) issue debt securities (bonds) and 2) issues equity securities (stocks) debt securities correct ans...

Exempt Securities from SEC Registration correct answer: -securities listed by the U.S. or federal agencies -Municipal Bonds -Securities issued by banks, savings institutions and credit unions -Public utility stocks or bonds -Securities issued by religious, educational or nonprofit organizations -Notes, bills of exchange, bankers acceptances and commercial paper with an initial maturity of 270 days or less -Insurance policies and fixed annuities Exempt Transactions from SEC Registration...