Municipal securities - Study guides, Class notes & Summaries

What type of risk is unique to a specific industry, business enterprise, or investment type? - ANSWER-Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? - 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 - ANSWER-the cost of an option contract, expressed in dollars per sh...

SIE Exam for Dummies Book Questions and Answers Already Passed Where must a corporate charter be filed, and what information does it include? A corporate charter must be filed in the state where the corporation is founded. It should detail the founders' names, the type of business, the business location, and the number of authorized shares that can be issued. What does the Securities Act of 1933 regulate? The Securities Act of 1933 oversees the issuance of new corporate securities, manda...

Comprehensive SIE Practice Exam Questions with Verified Solutions What role does the syndicate desk play during an equity offering? It is responsible for creating an order book and managing the allocation of shares. What advantage does investing in index funds offer? Index funds typically incur lower management fees because they follow a passive management approach. How does a primary distribution differ from a secondary distribution? A primary distribution involves the issuer s...

UNIT 3 TEST - MUNICIPAL SECURITIES

Common Stock - ANSWER-Is a security that represents ownership in a corporation. Exercise control by electing a board of directors and voting on corporate policy. Are on the bottom of the priority ladder for ownership structure Have rights to a company's assets only after bondholders, preferred shareholders and other debt holders are paid in full. Preferred Stock - ANSWER-Is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. ...

SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) What is a tender offer? - ANSWER - When a company offers to buy outstanding securities for cash or for cash plus other securities from its stockholders or bondholders What is a buy-back? - ANSWER - Sometimes referred to as a repurchase, is when a company buys its own outstanding securities in the open ma...

If an agent of a broker-dealer registers in State F in early November, when will their registration expire and need to be renewed? correct answers December 31st of that same year. State registration for all securities professionals expires on December 31st following the date of registration. Who is responsible for administering the Investment Advisers Act of 1940? correct answers The SEC is responsible for administering the IAA of 1940. Since the IAA of 1940 is federal law, it doesn't come u...

During a recession an Investor will buy _______________ bonds, and sell ________________ bonds. correct answers corporate | government The yield spread between government and corporate bonds during a recession should _____________ correct answers widen Ad Valorem tax correct answers A tax levied according to value, generally used to refer to real estate tax. Also called the general tax. Special tax bonds correct answers backed by special taxes (e.g., taxes on tobacco, gasoline, hotel/mo...

Federal Reserve Board : Founded on December 23rd 1913, to oversee financial panics. Independent of direct political influence. Federal Reserve Act was passed to stabilize prices, maximize employment, moderate long term interest. FINRA vs MSRB : FINRA oversees brokerage firms and their associated persons. MSRB- regulates the municipal securities market including dealers, municipal advisers, and issuers. Municipal Securities Rulemaking Board Structure of the Fed : The Board of Gover...

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 : 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 : 30/360 Blue-sky laws are regulated by which of the following entities? 2 | P ...