Securities Industry Essentials (SIE) Test with all Correct &
100% Verified Answers |Actual Complete Exam |Already
Graded A+
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
A 30/360
B 30/365
C Actual/360
D Actual/365 ✔Correct Answer-A
A transaction in which a writer covers a position by purchasing an option is called:
A. a closing sale
B. a closing purchase
C. an opening sale
D. an opening purchase ✔Correct Answer-B
At the time of issuance, which of the following securities normally has the longest period to
expiration?
A. rights
B. options
C. warrants
D. repurchase agreements ✔Correct Answer-C
Under Federal Reserve T, a 90-day restriction is imposed when a customer opens and closes
which of the following positions?
A. The same stock on the same day in a margin account
B. The same stock in different accounts on the same day
C. The same stock in different accounts in the same household.
D. The same stock in cash account without paying for the stock ✔Correct Answer-D
A married couple who earned income that exceeded $300,000 in each of the prior two years
and reasonably expects the same for the current year is:
A. a qualified investor.
B. an accredited investor
C. an institutional investor
D. a qualified institutional buyer (QIB) ✔Correct Answer-B
Direct participation programs (DDPs) provide:
A. liquidity and transparency
B. exposure to non-correlated assets with steady returns
, C. market-related correlations with higher average returns
D. investors with direct purchases of stock from public companies ✔Correct Answer-B
In which of the following situations is an employee of a public company permitted to trade upon
information without violating insider trading laws?
A. An independent securities analyst explains to the employee why the earnings for the
company next quarter could be markedly poorer than expected.
B. The employee's neighbor works for the government and informs him that the government
will award a major contract to the company next month.
C. The employee's spouse works in the corporate headquarters and shares with him a
conversation overheard at work regarding possible acquisition targets.
D. A coworker informs the employee of a conversation he had with the administrative assistant
to the company's general counsel regarding key developments in an ongoing class action
lawsuit. ✔Correct Answer-A
Blue-sky laws are regulated by which of the following entities?
A. SEC
B. MSRB
C. FINRA
D. State securities regulators ✔Correct Answer-D
The last transaction in XYZ 5.50s was at 102. This bond is selling at:
A. par
B. a premium
C. a discount
D. asset value ✔Correct Answer-B
Which of the following outcomes are possible for the writer of a covered call option?
A. Profit limited and loss limited
B. Profit limited and loss unlimited
C. Profit unlimited and loss limited
D. Profit unlimited and loss unlimited ✔Correct Answer-A
In a period of low inflation and economic recession, the Federal Reserve is expected to take
which of the following actions?
A. Decrease taxes
B. Raise the federal funds rate
C Buy bonds in the open market
D. Require banks to increase reserves ✔Correct Answer-C
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in which
the mayor is currently seeking re-election. A municipal finance professional who resides in the
town and works for ABC contributed $200 to the mayor's re-election campaign 13 months ago.
If the employee wants to support the campaign further without impacting the municipal
100% Verified Answers |Actual Complete Exam |Already
Graded A+
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
A 30/360
B 30/365
C Actual/360
D Actual/365 ✔Correct Answer-A
A transaction in which a writer covers a position by purchasing an option is called:
A. a closing sale
B. a closing purchase
C. an opening sale
D. an opening purchase ✔Correct Answer-B
At the time of issuance, which of the following securities normally has the longest period to
expiration?
A. rights
B. options
C. warrants
D. repurchase agreements ✔Correct Answer-C
Under Federal Reserve T, a 90-day restriction is imposed when a customer opens and closes
which of the following positions?
A. The same stock on the same day in a margin account
B. The same stock in different accounts on the same day
C. The same stock in different accounts in the same household.
D. The same stock in cash account without paying for the stock ✔Correct Answer-D
A married couple who earned income that exceeded $300,000 in each of the prior two years
and reasonably expects the same for the current year is:
A. a qualified investor.
B. an accredited investor
C. an institutional investor
D. a qualified institutional buyer (QIB) ✔Correct Answer-B
Direct participation programs (DDPs) provide:
A. liquidity and transparency
B. exposure to non-correlated assets with steady returns
, C. market-related correlations with higher average returns
D. investors with direct purchases of stock from public companies ✔Correct Answer-B
In which of the following situations is an employee of a public company permitted to trade upon
information without violating insider trading laws?
A. An independent securities analyst explains to the employee why the earnings for the
company next quarter could be markedly poorer than expected.
B. The employee's neighbor works for the government and informs him that the government
will award a major contract to the company next month.
C. The employee's spouse works in the corporate headquarters and shares with him a
conversation overheard at work regarding possible acquisition targets.
D. A coworker informs the employee of a conversation he had with the administrative assistant
to the company's general counsel regarding key developments in an ongoing class action
lawsuit. ✔Correct Answer-A
Blue-sky laws are regulated by which of the following entities?
A. SEC
B. MSRB
C. FINRA
D. State securities regulators ✔Correct Answer-D
The last transaction in XYZ 5.50s was at 102. This bond is selling at:
A. par
B. a premium
C. a discount
D. asset value ✔Correct Answer-B
Which of the following outcomes are possible for the writer of a covered call option?
A. Profit limited and loss limited
B. Profit limited and loss unlimited
C. Profit unlimited and loss limited
D. Profit unlimited and loss unlimited ✔Correct Answer-A
In a period of low inflation and economic recession, the Federal Reserve is expected to take
which of the following actions?
A. Decrease taxes
B. Raise the federal funds rate
C Buy bonds in the open market
D. Require banks to increase reserves ✔Correct Answer-C
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in which
the mayor is currently seeking re-election. A municipal finance professional who resides in the
town and works for ABC contributed $200 to the mayor's re-election campaign 13 months ago.
If the employee wants to support the campaign further without impacting the municipal
