SIE Course Exam with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Regular way settlement ✔Correct Answer-Trade date plus two business days (T + 2)
Record Date ✔Correct Answer-The date on which the corporation closes the updating of the
stock record book.
anti fraud provisions apply to ______ securities. ✔Correct Answer-Anti-fraud applies to ALL
securities and transactions
Reallowance ✔Correct Answer-a fee paid to non-syndicate outside broker/dealer firms who
requested shares or assisted in the distribution of shares during an underwriting.
joint tenants with rights of survivorship (JTWROS) ✔Correct Answer-An account for two or
more people, generally a husband and wife. Upon the death of either party, the surviving tenant
becomes the sole owner of the securities.
Preferred Stock ✔Correct Answer-An equity security that represents ownership in the
corporation just as common stock does, but has priority over common stock in receiving
dividends and sharing in assets if the company is dissolved. Preferred stock typically pays a fixed
dividend and is generally classified as a fixed income security.
Current yield formula ✔Correct Answer-Current Yield = Annual Dividends / Market price
Limited Partners ✔Correct Answer-Liability is limited to the amount of their "at risk"
investment in the entity.
What is an exercise or strike price? ✔Correct Answer-It is the fixed price on an option contract
at which call buyers buy stock on exercise and put buyers sell stock on exercise.
Calculating the annual coupon amount. ✔Correct Answer-Coupon Rate X Par Value
Investors who are bullish will either _______ a put option or _________ a call option.
✔Correct Answer-Investors who are bullish with either SELL a put option or BUY a call option.
Insider ✔Correct Answer-An insider is an officer, director, or principal stockholder (more than
10% ownership in a company).
Sales Literature ✔Correct Answer-Includes research reports, newsletters, performance
reports, form letters, telemarketing scripts, seminar texts, and reprints.
, Short term bonds react the ________ to changes in interest rates. ✔Correct Answer-Short
term bonds react the QUICKEST to changes in interest rates.
Continuing Education - Regulatory Element ✔Correct Answer-Registered Persons must
complete the regulatory element of their requirement within 120 days after the anniversary of
either:
1. The second anniversary date of their initial registration
2. Every three years thereafter as long as the person remains registered.
Full Power of Attorney ✔Correct Answer-Full power of attorney allows the broker/dealer or
another party to make purchase and sale decisions for the account and withdraw cash or
securities from the account.
Money Laundering ✔Correct Answer-Money laundering is the acceptance of large amounts of
cash from individuals or businesses where the money is suspected of being used for illegal
purposes.
Options Premium ✔Correct Answer-An options premium is the price at which an option
contract trades. Premiums are paid by buyers and received by sellers.
Manager's Fee ✔Correct Answer-A fee collected by the managing underwriter for performing
managerial functions for the syndicate.
Securities Exchange Act of 1934 ✔Correct Answer-The Act of 1934 was designed to protect
the public against unfair and inequitable practices in secondary market securities transactions.
Coverdell and Education Savings Accounts ✔Correct Answer-Coverdell and 529/College
Savings Accounts are tax-exempt accounts for the qualified education expenses of a designated
beneficiary to pay for education expenses.
Reg T Initial Requirements for a Margin Account Short ✔Correct Answer-1. Minimum equity
to open a short account is $2000, no exceptions.
2. Stock price of: a. $0 up to #5: Deposit of @2.50 per share or 100% of the market value,
whichever is greater; b. $5 up and up: Deposit of $5.00 per share or Regulation T (50%),
whichever is greater.
If interest rates go UP, prices on bonds go ___________ ✔Correct Answer-If interest rates go
UP, prices on bonds go DOWN
Registered Representative ✔Correct Answer-A representative is defined to include anyone
who solicits or conducts business in securities and anyone who trains such persons.
Current Yield Formula ✔Correct Answer-Current Yield = Annual Interest / Current market
price
Answers |Latest Version |Already Graded A+
Regular way settlement ✔Correct Answer-Trade date plus two business days (T + 2)
Record Date ✔Correct Answer-The date on which the corporation closes the updating of the
stock record book.
anti fraud provisions apply to ______ securities. ✔Correct Answer-Anti-fraud applies to ALL
securities and transactions
Reallowance ✔Correct Answer-a fee paid to non-syndicate outside broker/dealer firms who
requested shares or assisted in the distribution of shares during an underwriting.
joint tenants with rights of survivorship (JTWROS) ✔Correct Answer-An account for two or
more people, generally a husband and wife. Upon the death of either party, the surviving tenant
becomes the sole owner of the securities.
Preferred Stock ✔Correct Answer-An equity security that represents ownership in the
corporation just as common stock does, but has priority over common stock in receiving
dividends and sharing in assets if the company is dissolved. Preferred stock typically pays a fixed
dividend and is generally classified as a fixed income security.
Current yield formula ✔Correct Answer-Current Yield = Annual Dividends / Market price
Limited Partners ✔Correct Answer-Liability is limited to the amount of their "at risk"
investment in the entity.
What is an exercise or strike price? ✔Correct Answer-It is the fixed price on an option contract
at which call buyers buy stock on exercise and put buyers sell stock on exercise.
Calculating the annual coupon amount. ✔Correct Answer-Coupon Rate X Par Value
Investors who are bullish will either _______ a put option or _________ a call option.
✔Correct Answer-Investors who are bullish with either SELL a put option or BUY a call option.
Insider ✔Correct Answer-An insider is an officer, director, or principal stockholder (more than
10% ownership in a company).
Sales Literature ✔Correct Answer-Includes research reports, newsletters, performance
reports, form letters, telemarketing scripts, seminar texts, and reprints.
, Short term bonds react the ________ to changes in interest rates. ✔Correct Answer-Short
term bonds react the QUICKEST to changes in interest rates.
Continuing Education - Regulatory Element ✔Correct Answer-Registered Persons must
complete the regulatory element of their requirement within 120 days after the anniversary of
either:
1. The second anniversary date of their initial registration
2. Every three years thereafter as long as the person remains registered.
Full Power of Attorney ✔Correct Answer-Full power of attorney allows the broker/dealer or
another party to make purchase and sale decisions for the account and withdraw cash or
securities from the account.
Money Laundering ✔Correct Answer-Money laundering is the acceptance of large amounts of
cash from individuals or businesses where the money is suspected of being used for illegal
purposes.
Options Premium ✔Correct Answer-An options premium is the price at which an option
contract trades. Premiums are paid by buyers and received by sellers.
Manager's Fee ✔Correct Answer-A fee collected by the managing underwriter for performing
managerial functions for the syndicate.
Securities Exchange Act of 1934 ✔Correct Answer-The Act of 1934 was designed to protect
the public against unfair and inequitable practices in secondary market securities transactions.
Coverdell and Education Savings Accounts ✔Correct Answer-Coverdell and 529/College
Savings Accounts are tax-exempt accounts for the qualified education expenses of a designated
beneficiary to pay for education expenses.
Reg T Initial Requirements for a Margin Account Short ✔Correct Answer-1. Minimum equity
to open a short account is $2000, no exceptions.
2. Stock price of: a. $0 up to #5: Deposit of @2.50 per share or 100% of the market value,
whichever is greater; b. $5 up and up: Deposit of $5.00 per share or Regulation T (50%),
whichever is greater.
If interest rates go UP, prices on bonds go ___________ ✔Correct Answer-If interest rates go
UP, prices on bonds go DOWN
Registered Representative ✔Correct Answer-A representative is defined to include anyone
who solicits or conducts business in securities and anyone who trains such persons.
Current Yield Formula ✔Correct Answer-Current Yield = Annual Interest / Current market
price
