SIE Full Exam with all Correct & 100% Verified Answers |
Latest Version |Already Graded A+
The function of the sponsor of the fund is which of the following? ✔Correct Answer-
Distributing shares of the fund
The sponsor of the fund distributes, or is in charge of the sale of the fund's shares. Distributors
must have a selling agreement with the fund
The custodian is ✔Correct Answer-responsible for safekeeping; the transfer agent for
customer redemptions and other services; and the investment advisor for the trading of the
fund's portfolio.
A broker-dealer has just received the new account paperwork for an UGMA account. Which of
the following parties' names appears on the account form? ✔Correct Answer-The custodian
of the account
Standby Commitment ✔Correct Answer-the underwriter agrees to purchase for resale, any
percentage of a rights offering that is not subscribed during a two to four-week standby period.
Customer background and financial information must be sent to an options customer for
verification ✔Correct Answer-Within 15 days after the customer is approved for options
trading
When a corporation goes into bankruptcy, common stockholders ✔Correct Answer-Are the
last party to recover their investment
The tax advantages a limited partnership offers ✔Correct Answer-Should be of use to the
investor if the partnership investment is recommended
Are most useful in sheltering other passive income
Limited partnerships should be recommended only to investors who can benefit from the tax
features that are available. The passive losses that are passed through may be used to offset
other passive income only
The typical fee compensation paid to a private equity manager is ✔Correct Answer-2% of
invested capital
20% of funds net profits
If an XYZ oct 50 call is in-the-money by 7 points, what must the spot price be? ✔Correct
Answer-57
, Trade shredding ✔Correct Answer-prohibited practice where a customer order is split into
multiple smaller orders for the primary purpose of increasing monetary payments. Note that
this activity is permissible if the purpose is to achieve best execution for a customer.
The Official Statement ✔Correct Answer-contains the most complete financial information
about the issuer, and a detailed description of the municipal issue.
Karen made a $2,000 contribution to her Traditional IRA in November. After she looked at her
1099 wage statement the following February, showing annual compensation of $78,000, she
wished that she had made a larger contribution. Can she? ✔Correct Answer-Yes, up to her tax
filing deadline
All IRA contributions must be made by the due date of the individual's federal income tax
return, which usually is the next April 15.
An investor wishes to purchase 2 XYZ Jan 50 calls trading at 3 that are purchased in August.
What is the initial margin requirement for these calls? ✔Correct Answer-$600
A call or put contract with 9 months or less to expiration must be purchased in full. The initial
margin requirement in this example is 2 contracts x $300 per contract or $600.
A municipal broker-dealer has sold bonds to a client in a secondary market transaction. Which
of the following statements is TRUE regarding the customer confirmation? ✔Correct Answer-
the confirmation must be given or sent to the client at or prior to the completion of the trade
(settlement).
If Margaret exchanges one mutual fund for another in her IRA, what is the tax consequence?
✔Correct Answer-None
IRA owners are free to buy, sell, exchange or trade assets within their accounts without current
tax consequences.
How is income generated from option contracts? ✔Correct Answer-sellers receive premiums
The seller ("writer") receives a premium, and in return agrees to sell assets to the buyer at a
stated price, by a specified date.
When a company engages in a reverse stock split, ✔Correct Answer-The share price will go
up, resulting in increased potential interest in the company
Rules against anti-manipulation in the primary market sale of exempt securities are addressed in
✔Correct Answer-The Securities Act of 1933
An investor would be most vulnerable to credit risk in his portfolio as the result of his ownership
of ✔Correct Answer-Subordinate debentures or any bonds
Latest Version |Already Graded A+
The function of the sponsor of the fund is which of the following? ✔Correct Answer-
Distributing shares of the fund
The sponsor of the fund distributes, or is in charge of the sale of the fund's shares. Distributors
must have a selling agreement with the fund
The custodian is ✔Correct Answer-responsible for safekeeping; the transfer agent for
customer redemptions and other services; and the investment advisor for the trading of the
fund's portfolio.
A broker-dealer has just received the new account paperwork for an UGMA account. Which of
the following parties' names appears on the account form? ✔Correct Answer-The custodian
of the account
Standby Commitment ✔Correct Answer-the underwriter agrees to purchase for resale, any
percentage of a rights offering that is not subscribed during a two to four-week standby period.
Customer background and financial information must be sent to an options customer for
verification ✔Correct Answer-Within 15 days after the customer is approved for options
trading
When a corporation goes into bankruptcy, common stockholders ✔Correct Answer-Are the
last party to recover their investment
The tax advantages a limited partnership offers ✔Correct Answer-Should be of use to the
investor if the partnership investment is recommended
Are most useful in sheltering other passive income
Limited partnerships should be recommended only to investors who can benefit from the tax
features that are available. The passive losses that are passed through may be used to offset
other passive income only
The typical fee compensation paid to a private equity manager is ✔Correct Answer-2% of
invested capital
20% of funds net profits
If an XYZ oct 50 call is in-the-money by 7 points, what must the spot price be? ✔Correct
Answer-57
, Trade shredding ✔Correct Answer-prohibited practice where a customer order is split into
multiple smaller orders for the primary purpose of increasing monetary payments. Note that
this activity is permissible if the purpose is to achieve best execution for a customer.
The Official Statement ✔Correct Answer-contains the most complete financial information
about the issuer, and a detailed description of the municipal issue.
Karen made a $2,000 contribution to her Traditional IRA in November. After she looked at her
1099 wage statement the following February, showing annual compensation of $78,000, she
wished that she had made a larger contribution. Can she? ✔Correct Answer-Yes, up to her tax
filing deadline
All IRA contributions must be made by the due date of the individual's federal income tax
return, which usually is the next April 15.
An investor wishes to purchase 2 XYZ Jan 50 calls trading at 3 that are purchased in August.
What is the initial margin requirement for these calls? ✔Correct Answer-$600
A call or put contract with 9 months or less to expiration must be purchased in full. The initial
margin requirement in this example is 2 contracts x $300 per contract or $600.
A municipal broker-dealer has sold bonds to a client in a secondary market transaction. Which
of the following statements is TRUE regarding the customer confirmation? ✔Correct Answer-
the confirmation must be given or sent to the client at or prior to the completion of the trade
(settlement).
If Margaret exchanges one mutual fund for another in her IRA, what is the tax consequence?
✔Correct Answer-None
IRA owners are free to buy, sell, exchange or trade assets within their accounts without current
tax consequences.
How is income generated from option contracts? ✔Correct Answer-sellers receive premiums
The seller ("writer") receives a premium, and in return agrees to sell assets to the buyer at a
stated price, by a specified date.
When a company engages in a reverse stock split, ✔Correct Answer-The share price will go
up, resulting in increased potential interest in the company
Rules against anti-manipulation in the primary market sale of exempt securities are addressed in
✔Correct Answer-The Securities Act of 1933
An investor would be most vulnerable to credit risk in his portfolio as the result of his ownership
of ✔Correct Answer-Subordinate debentures or any bonds
