SIE practice exam Questions & Answers(RATED A) A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is - ANSWER 600 Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is
- ANSWER 7300
Large time deposits of more than $100,000 are considered to be found in what part of the money supply? - ANSWER M3 By purchasing shares of stock in a company, investors can benefit from which of the following?An increase in the price of the shares An increase in price of the company's debt securities An increase in the yield of the company's outstanding debt securities The receipt of profits to be distributed - ANSWER An Increase in price of shares and The receipts of profit to be distributed An offering in which one or more stockholders in the corporation are selling all or a portion of their own shares to the investing public for the first time is known as - ANSWER a secondary offering Which of the following is an example of an unsecured debt security?Debenture Preferred stock Mortgage bond Income bond - ANSWER Debenture and Income bond Mutual funds that market directly to the public, using no underwriter and charging no sales charge, are called - ANSWER No load funds During the cooling-off period, underwriters of new securities may accept orders to purchase shares not accept orders to purchase shares not accept indications of interest regarding potential purchases of shares accept indications of interest regarding potential purchases of shares - ANSWER not accept orders to purchase shares and accept indications of interest regarding potential purchase of shares The USA PATRIOT Act's required Customer Identification Program is designed chiefly to prevent real estate fraud 1 / 2
funding of terrorist activities use of insider information money laundering - ANSWER funding of terrorist activity and money laundering An investor owning 400 shares of CDS stock receives notice that the stock will be split.When the split is complete, the customer owns 600 shares of stock. The split must have been - ANSWER a forward, uneven split Each SRO functions under the SEC's oversight and is accountable to the commission for enforcing federal securities laws. While the MSRB regulates all matters related to the underwriting and trading of state and municipal securities, it does not have enforcement powers of its rules. Which of the following does the MSRB rely on for enforcement of these rules? - ANSWER Financial industry regulatory authority Under what circumstances could a broker-dealer firm share in a financial loss with a customer? - ANSWER If the loss was due to an error on the part of the firm Under the Uniform Transfers to Minors Act (UTMA) a custodian has control over the account and can do each of the following EXCEPT - ANSWER sell short and write uncovered call options An individual is solicited with a cold call made by a registered representative. He tells the representative he is not interested in this investment or in making any future investments. Which of the following actions is required by the Telephone Consumer Protection Act of 1991? - ANSWER No calls may be made to the prospect by anyone at the firm Which of the following are TRUE regarding mutual fund sales charges?They are used to defray fund expenses, such as operating costs and salaries.They are set by the fund's transfer agent.They are not an expense to the fund, but to the investor.They are used to compensate the fund's underwriter and sales representatives. - ANSWER They are not an expense to the fund, but to the investor and they are used to compensate the fund's underwriter and sales representatives An investor anticipates that a fall in interest rates is imminent. This investor, now wanting to purchase bonds in order to lock in interest income, would likely buy - ANSWER noncallable bonds Which of the following describes the results of a 1 for 2 reverse stock split? - ANSWER Half as many shares at twice the original price Associated persons or registered representatives who want to work outside of their existing employment with their current broker-dealer may do so if they provide prior written notice to the member. In which of the following would notice not be required? -
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