Chapter 6 Pass Perfect SIE Questions And Answers {100% Correct}
2026 Latest Update!!!
1. Which is prohibited when selling mutual fund A selling group member selling
shares? shares to the public at a discount
from the public ottering price
2. Which statement us TRUE regarding the federal neither the investment company nor
tax treatment of a "regulated" mutual fund in- the investors have federal tax liability
vesting solely in municipal securities? on income but capital gains distrib-
utions will be taxable
3. Which of the following are NOT true of REITs? They must distribute at least 95% of
their income annually to their share-
holders
4. Net Asset Value per share for a mutual fund can fund has made dividend distribu-
be expected to decrease if the: tions to shareholders
5. Which of the following is true of a unit invest- it has virtually no ongoing expenses
ment trust?
6. A fund that distributes at least 90% of its Net regulated fund
Investment Income to shareholders is termed
a(n)
7. Which of the following best fits the definition of Recommending or making trades in
churning a client's account in order to gener-
ate commissions
8. in an oil and gas income program, there are: no tangible drilling costs and high
depletion deductions
9. All of the following statements are true regard- manages the fund
ing the sponsor of a mutual fund EXCEPT the
sponsor:
1/6
, Chapter 6 Pass Perfect SIE Questions And Answers {100% Correct}
2026 Latest Update!!!
10. Regarding investments in limited partnerships, The partnership is not taxable entity
which statement is TRUE?
11. A 200% Leveraged inverse Dow Jones Industrial down 10% in price when the DIJA
Average Index ETF would be expected to move: moves up 5%
12. When comparing a mutual fund to a hedge Hedge funds are liquid
fund, which statement is FALSE?
13. A mutual fund's NAV is figured using: forward pricing
14. No load funds do not impose any of the follow- management fee
ing fees EXCEPT:
A. Front end sales charge
B. Redemption fee
C. Management fee
D. Contingent deferred sales charge
15. A growth fund would likely invest in which of the common stock options
following securities?
16. Exchange traded funds are not redeemable
17. which statement is FALSE regarding mutual The expense ratio will rise if the fund
fund expense ratios? experiences large investment inflows
18. Mutal funds are: issued and redeemed by the mutual
fund company
19. all of the following terms apply to publicly trad- redeemable
ed fund shares except:
A.) One-time issuance
2/6
2026 Latest Update!!!
1. Which is prohibited when selling mutual fund A selling group member selling
shares? shares to the public at a discount
from the public ottering price
2. Which statement us TRUE regarding the federal neither the investment company nor
tax treatment of a "regulated" mutual fund in- the investors have federal tax liability
vesting solely in municipal securities? on income but capital gains distrib-
utions will be taxable
3. Which of the following are NOT true of REITs? They must distribute at least 95% of
their income annually to their share-
holders
4. Net Asset Value per share for a mutual fund can fund has made dividend distribu-
be expected to decrease if the: tions to shareholders
5. Which of the following is true of a unit invest- it has virtually no ongoing expenses
ment trust?
6. A fund that distributes at least 90% of its Net regulated fund
Investment Income to shareholders is termed
a(n)
7. Which of the following best fits the definition of Recommending or making trades in
churning a client's account in order to gener-
ate commissions
8. in an oil and gas income program, there are: no tangible drilling costs and high
depletion deductions
9. All of the following statements are true regard- manages the fund
ing the sponsor of a mutual fund EXCEPT the
sponsor:
1/6
, Chapter 6 Pass Perfect SIE Questions And Answers {100% Correct}
2026 Latest Update!!!
10. Regarding investments in limited partnerships, The partnership is not taxable entity
which statement is TRUE?
11. A 200% Leveraged inverse Dow Jones Industrial down 10% in price when the DIJA
Average Index ETF would be expected to move: moves up 5%
12. When comparing a mutual fund to a hedge Hedge funds are liquid
fund, which statement is FALSE?
13. A mutual fund's NAV is figured using: forward pricing
14. No load funds do not impose any of the follow- management fee
ing fees EXCEPT:
A. Front end sales charge
B. Redemption fee
C. Management fee
D. Contingent deferred sales charge
15. A growth fund would likely invest in which of the common stock options
following securities?
16. Exchange traded funds are not redeemable
17. which statement is FALSE regarding mutual The expense ratio will rise if the fund
fund expense ratios? experiences large investment inflows
18. Mutal funds are: issued and redeemed by the mutual
fund company
19. all of the following terms apply to publicly trad- redeemable
ed fund shares except:
A.) One-time issuance
2/6
