SIE Exam 2 with all Correct & 100% Verified Answers |
Latest Version |Already Graded A+
If an investor owns Treasury bonds that will mature in 20 years, she is exposed to: ✔Correct
Answer-Inflationary Risk
Listed equity options cease trading at: ✔Correct Answer-4:00PM Eastern Time on the
expiration date
Who sets Regulation T requirements?
A) Regulation T is set by the FRB
B) Regulation T requires payment by settlement date
C) Regulation T is set by FINRA
D) Regulation T is set by the SEC ✔Correct Answer-A) Regulation is set by the FRB
A corporate bond that has no specific collateral backing and is guaranteed by the "full faith and
credit" of the issuing corporation is called a: ✔Correct Answer-Debenture
The BG mutual fund has a NAV of $11.72 and an offering price of $12.67. What is the sales
charge for this fund? ✔Correct Answer-7.5%
Offering Price - NAV
Difference/Offering Price = Sales Charge
If an issuer's convertible bonds are converted by bondholders, what is the effect on the issuer's
outstanding common stock? ✔Correct Answer-It will increase the number of outstanding
shares
A bond has a 6% coupon and is trading with a 8.34% basis. The bond is trading at which of the
following price levels? ✔Correct Answer-A discount
*YTM (basis) is higher than coupon rate = Discount
The practice of selling dividends is prohibited because: ✔Correct Answer-The amount of the
dividend is already included in the price the customer pays for the fund
Where does the interest paid on revenue bonds come from? ✔Correct Answer-Interest is
usually paid from the earnings of the facility for which the bond was issued
, Many investors prefer to receive variable annuity payments under the straight life payout option
because: ✔Correct Answer-Provides the maximum cash flow of all payout options
A facility is created by the issuance of industrial development revenue bonds. The bonds are
backed by: ✔Correct Answer-The corporation that leases the facility
A corporation that has issued common or preferred stock has created: ✔Correct Answer-
Outstanding Equity
A security with a high beta: ✔Correct Answer-Outperforms the market when its gaining and
underperforms the market when its losing
A corporation wishes to open a cash account. Which of the following documents is required?
✔Correct Answer-A corporate resolution
A regulation D offering may be sold to a maximum of: ✔Correct Answer-35 non accredited
investors
If a bond is currently selling for less than par valu, then: ✔Correct Answer-The current yield is
higher than the nominal yield
Broker-dealers must provide a privacy notice to every customer: ✔Correct Answer-Before
disclosing nonpublic, personal information
For a person who has a variable life insurance policy, which of the following risks is the greatest
concern? ✔Correct Answer-Market Risk
Which of the following statements is TRUE concerning filing a registration application with
FINRA? ✔Correct Answer-It is a violation for an application to be incomplete or misleading
Which organization is charged with the responsibility of regulating the blue-sky laws?
✔Correct Answer-State securities regulators
A 529 plan may be offered by which of the following methods? ✔Correct Answer-Sold directly
or by an advisor
In what situation can a registered person of a broker-dealer borrow funds from a customer
without approval of her firm? ✔Correct Answer-The customer is the brother-in law of the
registered person.
*Non-immediate family
Latest Version |Already Graded A+
If an investor owns Treasury bonds that will mature in 20 years, she is exposed to: ✔Correct
Answer-Inflationary Risk
Listed equity options cease trading at: ✔Correct Answer-4:00PM Eastern Time on the
expiration date
Who sets Regulation T requirements?
A) Regulation T is set by the FRB
B) Regulation T requires payment by settlement date
C) Regulation T is set by FINRA
D) Regulation T is set by the SEC ✔Correct Answer-A) Regulation is set by the FRB
A corporate bond that has no specific collateral backing and is guaranteed by the "full faith and
credit" of the issuing corporation is called a: ✔Correct Answer-Debenture
The BG mutual fund has a NAV of $11.72 and an offering price of $12.67. What is the sales
charge for this fund? ✔Correct Answer-7.5%
Offering Price - NAV
Difference/Offering Price = Sales Charge
If an issuer's convertible bonds are converted by bondholders, what is the effect on the issuer's
outstanding common stock? ✔Correct Answer-It will increase the number of outstanding
shares
A bond has a 6% coupon and is trading with a 8.34% basis. The bond is trading at which of the
following price levels? ✔Correct Answer-A discount
*YTM (basis) is higher than coupon rate = Discount
The practice of selling dividends is prohibited because: ✔Correct Answer-The amount of the
dividend is already included in the price the customer pays for the fund
Where does the interest paid on revenue bonds come from? ✔Correct Answer-Interest is
usually paid from the earnings of the facility for which the bond was issued
, Many investors prefer to receive variable annuity payments under the straight life payout option
because: ✔Correct Answer-Provides the maximum cash flow of all payout options
A facility is created by the issuance of industrial development revenue bonds. The bonds are
backed by: ✔Correct Answer-The corporation that leases the facility
A corporation that has issued common or preferred stock has created: ✔Correct Answer-
Outstanding Equity
A security with a high beta: ✔Correct Answer-Outperforms the market when its gaining and
underperforms the market when its losing
A corporation wishes to open a cash account. Which of the following documents is required?
✔Correct Answer-A corporate resolution
A regulation D offering may be sold to a maximum of: ✔Correct Answer-35 non accredited
investors
If a bond is currently selling for less than par valu, then: ✔Correct Answer-The current yield is
higher than the nominal yield
Broker-dealers must provide a privacy notice to every customer: ✔Correct Answer-Before
disclosing nonpublic, personal information
For a person who has a variable life insurance policy, which of the following risks is the greatest
concern? ✔Correct Answer-Market Risk
Which of the following statements is TRUE concerning filing a registration application with
FINRA? ✔Correct Answer-It is a violation for an application to be incomplete or misleading
Which organization is charged with the responsibility of regulating the blue-sky laws?
✔Correct Answer-State securities regulators
A 529 plan may be offered by which of the following methods? ✔Correct Answer-Sold directly
or by an advisor
In what situation can a registered person of a broker-dealer borrow funds from a customer
without approval of her firm? ✔Correct Answer-The customer is the brother-in law of the
registered person.
*Non-immediate family
