SIE Study guides, Class notes & Summaries

Part of the SIE Exam note package, covers Unit 1 - Primary and Secondary Markets. All key information has been bolded/underlined, including textbook screenshots and emphasis on key test topics. A must for anyone studying for the FINRA Securities Industry Exam on short notice!

QUESTIONS AND ANSWERS

SIE EXAM WITH 100% ACCURATE ANSWERS What is the core responsibility of the FRB? - correct answer To Maintain Price Stability According to the Securities Act of 1933 compliance protocol, what information does a company have to disclose to its investors before the initial public offering? - correct answer Financial Statements and information about the offered securities Why was the FDIC created? - correct answer To prevent bank runs and ensure that safety of customers' funds Which ...

SIE Exam With Questions And Answers...

1. Under normal circumstances, a customer's LOI on a mutual fund purchase is valid for what amx period time? A. 3 months B. 6 months C. 13 months 24 months : C. 13 months FinCEN accomplishes its mission to safeguard the financial system from the abuses of financial crime, including terrorist financing and money laundering, by enforcing: A. SEC regulations B. The Bank Secrecy Act C. The Securities Act of 1933 D. The Investment Company Act of 1940 : B. The Bank Secrecy A

What is cost basis? A The original purchase price plus any transaction costs B The transaction charges affiliated with the purchase of any security C The net after-tax purchase price per share of common stock D The amount of any gain or loss if a different transaction had occurred : A. The original purchase price plus any transaction costs Which of the following corporate securities carries the greatest risk to the investor? A Commercial paper B Common stock 2 | P a g e C Prefer...

A corporation can avoid registration requirements in the issuance of securities by engaging in a price placement under : Regulation D All of the Following are difference between qualified and non qualified retirement plans EXCEPT : - IRS approval requirement - TAXATION ON ACCUMULATION - Taxation on withdrawals - Taxation on contribution The term for active stock that represents the number of shares owned by the public is : Outstanding stock All of the following are characteristics o...

A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is : 600 Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is : 7300 Large time deposits of more than $100,000 are considered to be found in what part of the money supply? : 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 securit...

The Securities & Exchange Commission (SEC) was created by Congress in A 1929 B 1933 C 1934 D 1940 : 1934 The Act of '34 created the SEC. The term 'disclaimer' is most often associated with A The fact that no agent can guarantee a customer against loss 2 | P a g e B The fact that unregistered securities are more risky than registered ones C The fact that the government cannot guarantee the accuracy of the information in a prospectus D None of the above : The fact that the govern...

What is true about all U.S. government agency securities? : They are exempt from registration under the Securities Act of 1933 No-load mutual funds may have lower expense ratios than load mutual funds for which of the following reasons? : No-load funds are not permitted to charge a 12b-1 fee greater than 25 basis points -To be marketed as a no load fund, this type of fund may not assess a front-end load, a deferred sales load, or a 12b-1 fee (described next) that exceeds .25% of the fu...