FINRA SIE Exam 2 Questions with Newest
complete questions and correct verified
answers (detailed answers) already graded A+
If interest Rates fall the issuer will most likely call which bonds first? -
{✔✔ANSWER✔✔}-High Dividend Rate preferred issues trading at a
premium
If a fund distributes a capital gain to shareholders which statements are true
I The capital gain is taxable if taken as a check
II The capital gain is not taxable if taken as a check
III The capital gain is taxable if it is auto reinvested
IV The capital gain is not taxable if it is auto reinvested - {✔✔ANSWER✔✔}-I
and III
The capital gain is taxable either way because it is distributed
,Which of the following are types of Oil and Gas direct participation programs?
I Exploratory
II Income
III Balanced
IV Combination - {✔✔ANSWER✔✔}-I II and IV
Balanced is not a DPP
What benefits do oil drilling programs provide? - {✔✔ANSWER✔✔}-
Intangible drilling costs are 100% deductible in the year the drilling takes place
These programs give an immediate deduction
Which is most subject to reinvestment risk?
I Zero Coupon Bonds
II Low Coupon Bonds
III Medium Coupon Bonds
, IV High Coupon Bonds - {✔✔ANSWER✔✔}-IV High Coupon bonds are the
most susceptible to reinvestment risk
A customer places an to buy bonds. The order reads
"Buy 5M ABC 9s M'35 @ 90 GTC"
At which of the following will the price be executed
I 89
II 90
III 91
IV 92 - {✔✔ANSWER✔✔}-I and II
What are some actions by a corporation will affect an individuals common
shareholder's equity - {✔✔ANSWER✔✔}-Conversion of convertible
preferred stocks or bond
Repurchase of common shares
Issuance of additional common shares
complete questions and correct verified
answers (detailed answers) already graded A+
If interest Rates fall the issuer will most likely call which bonds first? -
{✔✔ANSWER✔✔}-High Dividend Rate preferred issues trading at a
premium
If a fund distributes a capital gain to shareholders which statements are true
I The capital gain is taxable if taken as a check
II The capital gain is not taxable if taken as a check
III The capital gain is taxable if it is auto reinvested
IV The capital gain is not taxable if it is auto reinvested - {✔✔ANSWER✔✔}-I
and III
The capital gain is taxable either way because it is distributed
,Which of the following are types of Oil and Gas direct participation programs?
I Exploratory
II Income
III Balanced
IV Combination - {✔✔ANSWER✔✔}-I II and IV
Balanced is not a DPP
What benefits do oil drilling programs provide? - {✔✔ANSWER✔✔}-
Intangible drilling costs are 100% deductible in the year the drilling takes place
These programs give an immediate deduction
Which is most subject to reinvestment risk?
I Zero Coupon Bonds
II Low Coupon Bonds
III Medium Coupon Bonds
, IV High Coupon Bonds - {✔✔ANSWER✔✔}-IV High Coupon bonds are the
most susceptible to reinvestment risk
A customer places an to buy bonds. The order reads
"Buy 5M ABC 9s M'35 @ 90 GTC"
At which of the following will the price be executed
I 89
II 90
III 91
IV 92 - {✔✔ANSWER✔✔}-I and II
What are some actions by a corporation will affect an individuals common
shareholder's equity - {✔✔ANSWER✔✔}-Conversion of convertible
preferred stocks or bond
Repurchase of common shares
Issuance of additional common shares
