SIE Progress Exam (Chapters 1-4) with all Correct & 100%
Verified Answers |Guaranteed to Pass
Which shares of preferred stock may increase the most if the value of the company's common
stock appreciates?
A. Convertible preferred stock
B. Cumulative preferred stock
C. Participating preferred stock
D. Callable preferred stock ✔Correct Answer-CONVERTIBLE PREFERRED STOCK
The type of market in which an issuer raises capital by selling its securities to investors is
referred to as the: ✔Correct Answer-PRIMARY MARKET
ABC Corporation's charter authorized the issuance of up to 1,000,000 shares of stock. The
company has issued 100,000 shares, but has 5,000 shares of treasury stock. How many shares
of ABC's stock are outstanding? ✔Correct Answer-100,000 issued - 5,000 bought back =
95,000 shares
Concerning dispute arbitration:
A. The SEC administers the process
B. FINRA determines the outcome of the process
C. FINRA helps to administer the process
D. The SEC determines the process ✔Correct Answer-FINRA helps to administer the process
of dispute arbitration
What type of municipal bond permits the issuer to raise property taxes? ✔Correct Answer-
G.O.
During periods of rising interest rates, an investor can expect:
A. The nominal rate of outstanding bonds to fall
B. Short-term bond yields to fall more than long-term bond yields
C. Short-term bond prices to fall more than long-term bond prices
D. Long-term bond prices to fall more than short-term bond prices ✔Correct Answer-Long
term bond prices fall more than short term
The Municipal Securities Rulemaking Board (MSRB) does NOT regulate which of the following?
A. Municipal issuers
B. Municipal salespersons
C. Municipal advertising
D. Municipal dealers ✔Correct Answer-muni issuers
Verified Answers |Guaranteed to Pass
Which shares of preferred stock may increase the most if the value of the company's common
stock appreciates?
A. Convertible preferred stock
B. Cumulative preferred stock
C. Participating preferred stock
D. Callable preferred stock ✔Correct Answer-CONVERTIBLE PREFERRED STOCK
The type of market in which an issuer raises capital by selling its securities to investors is
referred to as the: ✔Correct Answer-PRIMARY MARKET
ABC Corporation's charter authorized the issuance of up to 1,000,000 shares of stock. The
company has issued 100,000 shares, but has 5,000 shares of treasury stock. How many shares
of ABC's stock are outstanding? ✔Correct Answer-100,000 issued - 5,000 bought back =
95,000 shares
Concerning dispute arbitration:
A. The SEC administers the process
B. FINRA determines the outcome of the process
C. FINRA helps to administer the process
D. The SEC determines the process ✔Correct Answer-FINRA helps to administer the process
of dispute arbitration
What type of municipal bond permits the issuer to raise property taxes? ✔Correct Answer-
G.O.
During periods of rising interest rates, an investor can expect:
A. The nominal rate of outstanding bonds to fall
B. Short-term bond yields to fall more than long-term bond yields
C. Short-term bond prices to fall more than long-term bond prices
D. Long-term bond prices to fall more than short-term bond prices ✔Correct Answer-Long
term bond prices fall more than short term
The Municipal Securities Rulemaking Board (MSRB) does NOT regulate which of the following?
A. Municipal issuers
B. Municipal salespersons
C. Municipal advertising
D. Municipal dealers ✔Correct Answer-muni issuers
