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EXAMFX SIE EXAM AND PRACTICE EXAM
NEWEST 2024-2025 ACTUAL EXAM COMPLETE
300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
EXAMFX SIE EXAM
An investor receives a confirmation for the purchase of a foreign company's shares that was executed on a U.S. exchange. What type of shares has the investor purchased? - CORRECT ANSWER-American Depository Receipts (ADRs)
Who is responsible for transferring ownership of the stock certificate? - CORRECT ANSWER -Transfer agent
What type of common stock has no dividend or voting rights? - CORRECT ANSWER -Treasury stock
A convertible preferred stock with a conversion ratio of 4:1 is
trading at $100 and is at parity with the common stock. What is the price of the common stock? - CORRECT ANSWER -$25
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What is the term for a portion of total authorized shares that are actually sold to investors? - CORRECT ANSWER -Issued shares
A shareholder owns 100 shares of stock with cumulative voting rights. If there are 4 vacancies being voted upon, what is the maximum number of votes the shareholder may cast for any one vacancy? - CORRECT ANSWER -400
What does the capitalization of a corporation consist of? - CORRECT ANSWER -Stocks and bonds
What is the term for securities purchased in unregistered, private sales from the issue? - CORRECT ANSWER -Restricted securities
What is the term for the number of outstanding shares of a corporation multiplied by the stock price? - CORRECT ANSWER-Market Cap (market capitalization)
Typically, preferred stock has a par value of what amount? -
CORRECT ANSWER -$100
How is the number of outstanding stock shares calculated? - CORRECT ANSWER -Issued shares minus Treasury stock 2 / 4
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In bankruptcy liquidation what is paid out first? - CORRECT ANSWER-Employee back wages
What kind of bond is issued at a deep discount from the U.S.Treasury? - CORRECT ANSWER -Zero-coupon bond
What is another name for high-yield bonds? - CORRECT ANSWER-Junk bonds or speculative bonds
Which type of municipal bond is backed by the full faith, credit and taxing power of the issuer? - CORRECT ANSWER -General Obligation bonds
A municipality issued bonds to finance improvements to its sewer system. Bondholders will be repaid through increased rates for water and sewer services. What type of bonds are these? - CORRECT ANSWER -Revenue bonds
What is measured by the yield to maturity? - CORRECT ANSWER-The total performance of a bond from the time of purchase until maturity
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If the underwriter is selected by the issuer to purchase bonds, what status does this give the offering? - CORRECT ANSWER - Negotiated
For discount bonds, name the yields from highest to lowest. - CORRECT ANSWER -Yield to maturity, current yield, nominal yield
Which government agency issues are backed by the full faith and credit of the U.S. government? - CORRECT ANSWER - GNMA (Ginnie Mae)
The quote "Bid 1.50 and Ask 1.45" is for what type of U.S.Treasury security? - CORRECT ANSWER -T-Bills
What are the terms to maturity for a bond and how long is each
term? - CORRECT ANSWER -Short term: less than 2 years
(Bills), intermediate term: 2 to 10 years (Notes), and long term: more than 10 years (bonds).
When a bond is sold, who receives the accrued interest? - CORRECT ANSWER -The seller
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