1.
SIE, Understanding Products and Their Risks,SIE
Someone who purchases shares of a corporation's common stock has
1 out of 100
2.
SIE, Understanding Products and Their Risks,SIE
Which of the following regarding capital and money markets is true
2 out of 100
3.
SIE, Understanding Products and Their Risks,SIE
Shelby Bogden, your client, purchased a 6% corporate bond with a current yield of 5%. The bond was purchased at
3 out of 100
4.
SIE, Understanding Products and Their Risks,SIE
Which of the following is a characteristic shared by both corporate debentures and income bonds
4 out of 100
5.
SIE, Understanding Products and Their Risks,SIE
All of the following accounts are for unincorporated businesses except
5 out of 100
6.
SIE, Understanding Products and Their Risks,SIE
Regarding investment products, which of the following is true?
6 out of 100
7.
SIE, Understanding Products and Their Risks,SIE
A customer investing in common equity securities could realize all of the following except
7 out of 100
8.
SIE, Understanding Products and Their Risks,SIE
All of the following statements about a home office are true except
8 out of 100
9.
SIE, Understanding Products and Their Risks,SIE
Common shareholders wanting to vote on issues at a shareholder meeting can do so in all of the following ways except
9 out of 100
10.
SIE, Understanding Products and Their Risks,SIE
Exempt from the penny stock rules are
10 out of 100
11.
SIE, Understanding Products and Their Risks,SIE
An individual owning shares of a corporation's common stock would have all of the following rights except
11 out of 100
12.
SIE, Understanding Products and Their Risks,SIE
For preferred shares, the annual dividend payment is
12 out of 100
13.
SIE, Understanding Products and Their Risks,SIE
All of the following could be characterized as benefits to owning common stock except
13 out of 100
14.
SIE, Understanding Products and Their Risks,SIE
A company has distributed profits to its shareholders. This type of distribution would most likely be in the form of
14 out of 100
15.
SIE, Understanding Products and Their Risks,SIE
Which of these is an equity security?
15 out of 100
16.
SIE, Understanding Products and Their Risks,SIE
An example of a fixed-income security would include all of the following except
16 out of 100
17.
SIE, Understanding Products and Their Risks,SIE
All corporations will issue
17 out of 100
18.
SIE, Understanding Products and Their Risks,SIE
Each of the following are likely benefits of owning shares of common stock except
18 out of 100
19.
SIE, Understanding Products and Their Risks,SIE
Characteristics common to penny stocks would include which of the following?
19 out of 100
20.
SIE, Understanding Products and Their Risks,SIE
A customer has held an account with a broker-dealer for over one year. A registered representative associated with the firm recommends the purchase of an unlisted security trading at $3.50. What documentation, if any, is required prior to the trade?
20 out of 100
21.
SIE, Understanding Products and Their Risks,SIE
Because common stock can be sold or given away, it is considered to be
21 out of 100
22.
SIE, Understanding Products and Their Risks,SIE
Common stockholders owning dividend paying stocks are exposed to
22 out of 100
23.
SIE, Understanding Products and Their Risks,SIE
Under the rules, a penny stock is defined as an unlisted, security trading at less than
23 out of 100
24.
SIE, Understanding Products and Their Risks,SIE
A company's business operations are overseen by
24 out of 100
25.
SIE, Understanding Products and Their Risks,SIE
Voting rights are a privilege generally afforded to
25 out of 100
26.
SIE, Understanding Products and Their Risks,SIE
When a company wants to issue additional shares of stock, the preemptive right given to existing shareholders allows those shareholders to
26 out of 100
27.
SIE, Understanding Products and Their Risks,SIE
In the dividend disbursement process three of the four critical dates are determined by the board of directors (BOD) but one is determined by either Financial Industry Regulatory Authority (FINRA) for OTC stocks or the exchange for listed stocks. Which one is it?
27 out of 100
28.
SIE, Understanding Products and Their Risks,SIE
A share of stock in the hands of a stockholder represents
28 out of 100
29.
SIE, Understanding Products and Their Risks,SIE
Before effecting an initial penny stock transaction for a new customer, the registered representative must do all of the following except
29 out of 100
30.
SIE, Understanding Products and Their Risks,SIE
Regarding the rights of a common stockholder, each of the following is true except
30 out of 100
31.
SIE, Understanding Products and Their Risks,SIE
Regarding transferability for common shares, which of the following is true?
31 out of 100
32.
SIE, Understanding Products and Their Risks,SIE
Common shareholders have the right to
32 out of 100
33.
SIE, Understanding Products and Their Risks,SIE
Which of the following is an example of an equity security?
33 out of 100
34.
SIE, Understanding Products and Their Risks,SIE
By electing a board of directors (BOD), stockholders have
34 out of 100
35.
SIE, Understanding Products and Their Risks,SIE
The decision to pay a dividend rests with
35 out of 100
36.
SIE, Understanding Products and Their Risks,SIE
A common stock shareholder's residual right to corporate assets refers to which of the following?
36 out of 100
37.
SIE, Understanding Products and Their Risks,SIE
A shareholder feels strongly about some of the issues to be voted on at the next shareholder meeting but is unable to attend. Which of the following is true?
37 out of 100
38.
SIE, Understanding Products and Their Risks,SIE
Common shareholders have the right to receive an audited set of financial statements of the company's performance
38 out of 100
39.
SIE, Understanding Products and Their Risks,SIE
Common shareholders have the right to receive an audited set of financial statements of the company's performance
39 out of 100
40.
SIE, Understanding Products and Their Risks,SIE
A penny stock is best described as
40 out of 100
41.
SIE, Understanding Products and Their Risks,SIE
In order to receive a declared dividend a shareholder must be an owner of record at the close of business on the
41 out of 100
42.
SIE, Understanding Products and Their Risks,SIE
A common stock shareholder's residual right to corporate assets refers to which of the following?
42 out of 100
43.
SIE, Understanding Products and Their Risks,SIE
In order to receive a declared dividend a shareholder must be an owner of record at the close of business on the
43 out of 100
44.
SIE, Understanding Products and Their Risks,SIE
By electing a board of directors (BOD), stockholders have
44 out of 100
45.
SIE, Knowledge of Capital Markets,SIE
The Securities Act of 1933 requires that
45 out of 100
46.
SIE, Knowledge of Capital Markets,SIE
Which of the following is true regarding the primary market?
46 out of 100
47.
SIE, Knowledge of Capital Markets,SIE
Regarding primary offerings, which of the following is true?
47 out of 100
48.
SIE, Knowledge of Capital Markets,SIE
A corporation needs to build a new manufacturing facility costing several hundred million dollars. In which of the following markets could this new capital be raised?
48 out of 100
49.
SIE, Knowledge of Capital Markets,SIE
A corporation sells shares to the investing public in order to raise capital. This is known as
49 out of 100
50.
SIE, Knowledge of Capital Markets,SIE
A company is considering raising capital without going through the registration process requirements mandated by the Securities Act of 1933. To be exempt from the act, which of the following offerings might they employ?
50 out of 100
51.
SIE, Knowledge of Capital Markets,SIE
Which of the following statements is true?
51 out of 100
52.
SIE, Knowledge of Capital Markets,SIE
Each of the following may be traded on an exchange except
52 out of 100
53.
SIE, Knowledge of Capital Markets,SIE
Private placements are primarily sold to
53 out of 100
54.
SIE, Knowledge of Capital Markets,SIE
Which of the following best describes a prospectus?
54 out of 100
55.
SIE, Knowledge of Capital Markets,SIE
For nonexempt securities being offered to the public for the first time by a corporate issuer, which of the following would be applicable?
55 out of 100
56.
SIE, Knowledge of Capital Markets,SIE
The primary purpose of the Securities Act of 1933 is to
56 out of 100
57.
SIE, Knowledge of Capital Markets,SIE
For primary and secondary markets, which of the following is true?
57 out of 100
58.
SIE, Knowledge of Capital Markets,SIE
The XYZ Company is looking to offer shares of its common stock to the public. Which of the following laws enacted by Congress would have the most relevance to the issuance of these securities?
58 out of 100
59.
SIE, Knowledge of Capital Markets,SIE
If an officer of a bank with the authority to purchase and sell securities on behalf of the bank wants to purchase new issues, which of the following statements is true?
59 out of 100
60.
SIE, Knowledge of Capital Markets,SIE
Public offerings of securities are regulated under
60 out of 100
61.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Which of the following best describes how a sell stop at 39 order would be filled?
61 out of 100
62.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Which of the following best describes how a market order to sell would fill if placed when the price of the stock is a 40?
62 out of 100
63.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
A market order to buy must be executed when and at what available price?
63 out of 100
64.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Caleb McCann got a tip from his brother Nate on XYZ stock two months ago. Caleb hasn't previously been investing in the stock market but has been watching this stock since he got the tip from his brother. Caleb is now very bullish on XYZ and wants to place a trade. Which of the following would you recommend?
64 out of 100
65.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Your client, Mary Quinn, wants to place an order to sell a stock in her portfolio when the current price is 45, but she is only willing to sell if she can sell for at least 47. Which order should she place?
65 out of 100
66.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Your client, Jane Anderson, has owned QRS for a few years but has now turned bearish on QRS. What transaction would you recommend?
66 out of 100
67.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
John Christensen places a buy limit order at 42 when the market price of the stock is at 45. Which of the following best describes how the order would fill?
67 out of 100
68.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Which of the following would be required for a good 'til canceled order to remain in force for more than six months?
68 out of 100
69.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Which of the following best describes how a market order to buy would fill if placed when the market price of the stock was at 40?
69 out of 100
70.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Which of the following best describes how a buy stop at 39 would fill?
70 out of 100
71.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
A customer enters the following order: Sell 1,000 shares of XYZ at 23. Which of the following executions would the customer accept?
71 out of 100
72.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Your client, Alice Tate, with no other positions in her margin account, is bearish on ABC stock. Which of the following transactions would you recommend?
72 out of 100
73.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
If left unexecuted, a good til cancel (GTC) order will automatically be canceled when?
73 out of 100
74.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
"An order is entered by a customer to sell at 30 stop limit. Once the order is entered, the stock trades in the following sequence: 32, 29, 31, and 33. The order would be executed and the investor would receive a price of"
74 out of 100
75.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
A GTC order is left unexecuted at the end of the trading day on the last business day of April. Which of the following is true?
75 out of 100
76.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
A customer enters a market order. This type of order can be
76 out of 100
77.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
How long can a good 'til canceled order remain in force without being reconfirmed by the customer?
77 out of 100
78.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Who must reconfirm a good 'til canceled order for it to stay in force more than six months?
78 out of 100
79.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Your client, Randall Stephens, has been bearish on LMN stock and sold it short several months ago. He now believes the company is in a good position for a turnaround and wants to change his strategy on LMN. What should he do to implement his new strategy?
79 out of 100
80.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
A customer is given a quote for ABC as: 17.00 – 17.25 6 × 12. This quote indicates the customer can
80 out of 100
81.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Which of the following best describes the size of a quote?
81 out of 100
82.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Unless otherwise specified, the size of a firm quote is
82 out of 100
83.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
The ask price represents
83 out of 100
84.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Subject to market liquidity, which of the following orders is most likely to be executed immediately?
84 out of 100
85.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
The spread a dealer makes is best described as
85 out of 100
86.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Shares must be borrowed in order to
86 out of 100
87.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Selling shares not yet borrowed or located to be borrowed is
87 out of 100
88.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
When investors open a position by going long the security, they can close the position by
88 out of 100
89.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
What is the spread on a stock quote?
89 out of 100
90.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
An opening transaction can be
90 out of 100
91.
SIE, Understanding Trading, Customer Accounts and Prohibited Activities,SIE
Which of the following transactions has the most risk?
91 out of 100
92.
SIE, Overview of Regulatory Framework,SIE
An individual would most likely be statutorily disqualified from working in the securities industry for which of the following reasons?
92 out of 100
93.
SIE, Overview of Regulatory Framework,SIE
An application for Financial Industry Regulatory Authority (FINRA) membership carries the applying firm's specific agreement to do which of the following?
93 out of 100
94.
SIE, Overview of Regulatory Framework,SIE
The U-4 form requires registered representatives to disclose all of the following except
94 out of 100
95.
SIE, Overview of Regulatory Framework,SIE
Which of the following is true regarding a registered person who wishes to move her registration from one broker-dealer to another?
95 out of 100
96.
SIE, Overview of Regulatory Framework,SIE
Fingerprint records are required for each of the following employees of a registered broker-dealer except
96 out of 100
97.
SIE, Overview of Regulatory Framework,SIE
When a new associated person is hired at a broker-dealer firm, which of the following is responsible for seeing that Form U-4 is completed and filed?
97 out of 100
98.
SIE, Overview of Regulatory Framework,SIE
Before submitting an application to enroll, part of the process for an associated person to engage in the investment banking or securities business, is to have the member firm that sponsors them ascertain the individuals
98 out of 100
99.
SIE, Overview of Regulatory Framework,SIE
Members and non-members alike can look into a broker's service and qualifications record by accessing which of the following services?
99 out of 100
100.
SIE, Overview of Regulatory Framework,SIE
Information on the Form U-4 is extensive and includes names (aliases) and addresses in addition to which of the following?
100 out of 100
