FINRA SIE Test with all Correct & 100% Verified Answers |
Latest Version |Already Graded A+
Upon Expiration, all in-the-money S&P 100 Index call options are settled by the delivery of
which of the following? ✔Correct Answer-Cash
Which of the following statements is true about treasury stock? ✔Correct Answer-It is issued
stock that has been subsequently reacquired by the corporation
In the event of a stock split, which of the following parties is required to maintain a record of
the shareholders eligible to receive the additional shares? ✔Correct Answer-Transfer Agent
Which of the following actions is required of a broker-dealer's anti-money laundering (AML)
program? ✔Correct Answer-Designating an AML compliance officer
A registered representative (RR) wants to participate in a private securities transaction. Which
of the following actions must the RR take? ✔Correct Answer-Send written notice to his
supervisor outlining the activity and compensation structure
A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and simultaneously buys 100 shares
of ABC stock for $35 per share. The customer will break even when the stock is selling at what
price per share at expiration? ✔Correct Answer-$38
The call provision of a bond stipulates which of the following factors? ✔Correct Answer-Call
date and call price
When is interest on Treasury notes paid? ✔Correct Answer-Semiannually
The owner of which of the following products is MOST exposed to inflationary risk? ✔Correct
Answer-Treasury bonds (because it's long-term)
A registered representative (RR) who wants to place a mutual fund advertisement must obtain
written approval from which of the following parties? ✔Correct Answer-A registered principal
of the RR's firm
A company announces a tender offer to its shareholders with the intent to buy a maximum of 1
million shares of its outstanding stock at $10 per share and sets no minimum number of shares
to be purchased. An investor wants to participate in this offer and tenders his 1,000 share
position. At the close of the offer period, only 900,000 shares have been tendered. How many, if
any, of the investor's shares will the company purchase? ✔Correct Answer-1,000 (1,000 x 100
= 100,000 shares; 1 million - 900k = 100k)
, 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
securities business of the firm, he is permitted to make an additional contribution of up to what
amount? ✔Correct Answer-$50 ($250 is the limit PER election)
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding?
✔Correct Answer-Secured debt holders
[Order of liquidation at bankruptcy:
1. Unpaid wages
2. Taxes (IRS)
3. Secured claims (mortgages)
4. Secured liabilities (bonds)
5. Unsecured liabilities (debentures) and general creditors
6. Subordinated debt
7. Preferred Stockholders
8. Common stockholders]
An investors owns 100 shares of XYZ common stock at the current market price of $50 per
share. If XYZ conducts a 1-for-2 REVERSE stock split, the investor's post-split stock position will
be: ✔Correct Answer-50 shares at $100 per share
The primary purpose of a syndicate desk in the context of an equity offering is to: ✔Correct
Answer-build an order book and allocate the stock
Which of the following investments are generally traded according to their average life rather
than their stated maturity dates? ✔Correct Answer-Asset-backed securities
UTMA (Minor) accounts are opened under the tax ID of the: ✔Correct Answer-minor
Stability in the value of debt portfolio is greatest when: ✔Correct Answer-maturities of the
debt securities are short
Which of the following statements is true about all U.S. government agency issues? ✔Correct
Answer-They are exempt from registration under the Securities Act of 1933
Which of the following products is adversely impacted if the issuer's credit rating is
downgraded? ✔Correct Answer-Exchange-traded notes (ETNs)
Company ABC announces a 20% stock dividend for its common shareholders. If a customer
holds 1,000 shares at $50.00, what is the new price and number of shares following the
Latest Version |Already Graded A+
Upon Expiration, all in-the-money S&P 100 Index call options are settled by the delivery of
which of the following? ✔Correct Answer-Cash
Which of the following statements is true about treasury stock? ✔Correct Answer-It is issued
stock that has been subsequently reacquired by the corporation
In the event of a stock split, which of the following parties is required to maintain a record of
the shareholders eligible to receive the additional shares? ✔Correct Answer-Transfer Agent
Which of the following actions is required of a broker-dealer's anti-money laundering (AML)
program? ✔Correct Answer-Designating an AML compliance officer
A registered representative (RR) wants to participate in a private securities transaction. Which
of the following actions must the RR take? ✔Correct Answer-Send written notice to his
supervisor outlining the activity and compensation structure
A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and simultaneously buys 100 shares
of ABC stock for $35 per share. The customer will break even when the stock is selling at what
price per share at expiration? ✔Correct Answer-$38
The call provision of a bond stipulates which of the following factors? ✔Correct Answer-Call
date and call price
When is interest on Treasury notes paid? ✔Correct Answer-Semiannually
The owner of which of the following products is MOST exposed to inflationary risk? ✔Correct
Answer-Treasury bonds (because it's long-term)
A registered representative (RR) who wants to place a mutual fund advertisement must obtain
written approval from which of the following parties? ✔Correct Answer-A registered principal
of the RR's firm
A company announces a tender offer to its shareholders with the intent to buy a maximum of 1
million shares of its outstanding stock at $10 per share and sets no minimum number of shares
to be purchased. An investor wants to participate in this offer and tenders his 1,000 share
position. At the close of the offer period, only 900,000 shares have been tendered. How many, if
any, of the investor's shares will the company purchase? ✔Correct Answer-1,000 (1,000 x 100
= 100,000 shares; 1 million - 900k = 100k)
, 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
securities business of the firm, he is permitted to make an additional contribution of up to what
amount? ✔Correct Answer-$50 ($250 is the limit PER election)
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding?
✔Correct Answer-Secured debt holders
[Order of liquidation at bankruptcy:
1. Unpaid wages
2. Taxes (IRS)
3. Secured claims (mortgages)
4. Secured liabilities (bonds)
5. Unsecured liabilities (debentures) and general creditors
6. Subordinated debt
7. Preferred Stockholders
8. Common stockholders]
An investors owns 100 shares of XYZ common stock at the current market price of $50 per
share. If XYZ conducts a 1-for-2 REVERSE stock split, the investor's post-split stock position will
be: ✔Correct Answer-50 shares at $100 per share
The primary purpose of a syndicate desk in the context of an equity offering is to: ✔Correct
Answer-build an order book and allocate the stock
Which of the following investments are generally traded according to their average life rather
than their stated maturity dates? ✔Correct Answer-Asset-backed securities
UTMA (Minor) accounts are opened under the tax ID of the: ✔Correct Answer-minor
Stability in the value of debt portfolio is greatest when: ✔Correct Answer-maturities of the
debt securities are short
Which of the following statements is true about all U.S. government agency issues? ✔Correct
Answer-They are exempt from registration under the Securities Act of 1933
Which of the following products is adversely impacted if the issuer's credit rating is
downgraded? ✔Correct Answer-Exchange-traded notes (ETNs)
Company ABC announces a 20% stock dividend for its common shareholders. If a customer
holds 1,000 shares at $50.00, what is the new price and number of shares following the
