SIE Exam Chapters 1-5 with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
1. Bid Represents a clients selling price
-This is the price at which the MM will buy
2. dealer to NASDAQ
dealer
markets -Non-physical; phone and computer network
-Negotiated market
-unlimited number of registered "market makers"
-Classified as a securities
3. OTCBB
(Bulletin exchange Must be reporting
Board)
companies
4. Third Market - Listed securities traded otc
-Do not maintain an inventory
5. Issuers Are legal entities that raise capital by issuing securities. These include:
Corporations
U.S. Treasury and Government
Agencies State and local governments
Banks
Foreign Governments
6. Equity Used by corporations and banks
-represents ownership
7. Debt Ex: Notes and bonds
Represent and issuers promise to pay
8. Broker -Firm acts as a agent or conduit
-Finds another party willing to take the other side of trade
-Collect commission for the service
-No risk to the firm
, SIE Exam Chapters 1-5 with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
9. Dealer -Firm acts as a principal
-Firm takes the other side of the trade
-Entitled to markup/markdown
-Risk= Using their own money to take the other side of the trade
10. Investmen -Issuance
t Banking
-Acts as an underwriter
-Merger and Acquisition
-Private Equity
-Debt and equity capital markets
11. Research -Research reports on which companies should be bought or sold
12. Private Client - Retail Brokerage
13. Sales and -Fixed income
Trad- ing
-Equity
-Bonds and debt
14. Market-Maker Is a broker-dealer that chooses to display quotes to buy or sell a
specific amount of securities at specific prices
-Quotes are firm for at least 100 shares=round
lots Make Spreads
15. Ask or Offer Represents a clients purchase price
-This is the price at which the MM will sell
16. Investment Is a firm that charges customers a fee for managing their securities
Ad- viser
portfolios.
-The fee is based on the assets under management
17. Municipal Advi- -An IA is considered a large or institutional customer of a broker dealer
sor
Is a person or firm who advises municipalities on bond otterings and must
be registered with the SEC
, SIE Exam Chapters 1-5 with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
-Typically advise issuers (ex: state, county or city) regarding the
structure and timing of a new ottering.
18. institutional in- Customers with a large amount of assets
vestor -Banks
-Insurance companies
-Investment companies
-corporations, partnerships
-Registered investment advisers
-public and private pension plans
-Hedge funds
19. Retail Investor - Individual Investors who are not defined as institutional investors
20. Accredited Institutional investors as well as individuals who have met a financial test
In- vestors
-Net worth of $1,00,000 excluding primary residence
-Annual income of $200,000 in each of the last 2 years, $300,000 for
21. Qualified Insti- married couples
tutional
Buyer (QIB) Buyer must own and invest a minimum of $100 of securities
-cannot be a natural person
22. primary market market for selling financial assets that can only be redeemed by the original
holder
Issuer-Underwriter-Investor
23. IPO Initial Public Ottering
24. secondary Trading markets that facilitate the exchange of existing financial
mar- ket
instruments among investors
25.
, SIE Exam Chapters 1-5 with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
Non-Exchnage Often low prices and thinly traded
Issues (OTC)
-Two systems which otter real-time quotations:
1. OTCBB (Bulletin Board)
2. OTC Pink Markets
26. OTC Pink Markets May be non-reporting companies
27. Trader Execute trades for their firm or their firms clients
-Do not maintain an inventory
28. Fourth Market transactions made directly between large institutional buyers and sellers of
secu- rities
29. Dark Pools Provides liquidity for large institutional investors and high-frequency traders.
-Quotes are not disseminated to the public
-Limits impact on the market
-Anonymous
30. DTTC: Depository Provides cleaning, settlement and information services for its members
Trust and Clear- -Is parents of the National Securities Clearing Corporation
ing Corp
-Guarantees Settlements
-Removes counterparty risk
-Transactions among members are completed through computerized
31. Introducin bookkeep- ing entries.
g Firms
-Omnibus
-Fully Disclosed
32. omnibus -A single account is set up at the clearing account
-Specific client information is maintained by the introducing firm
-Record-keeping responsibilities rest with the introducing firm
+4
Actual Complete Exam |Already Graded A+
1. Bid Represents a clients selling price
-This is the price at which the MM will buy
2. dealer to NASDAQ
dealer
markets -Non-physical; phone and computer network
-Negotiated market
-unlimited number of registered "market makers"
-Classified as a securities
3. OTCBB
(Bulletin exchange Must be reporting
Board)
companies
4. Third Market - Listed securities traded otc
-Do not maintain an inventory
5. Issuers Are legal entities that raise capital by issuing securities. These include:
Corporations
U.S. Treasury and Government
Agencies State and local governments
Banks
Foreign Governments
6. Equity Used by corporations and banks
-represents ownership
7. Debt Ex: Notes and bonds
Represent and issuers promise to pay
8. Broker -Firm acts as a agent or conduit
-Finds another party willing to take the other side of trade
-Collect commission for the service
-No risk to the firm
, SIE Exam Chapters 1-5 with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
9. Dealer -Firm acts as a principal
-Firm takes the other side of the trade
-Entitled to markup/markdown
-Risk= Using their own money to take the other side of the trade
10. Investmen -Issuance
t Banking
-Acts as an underwriter
-Merger and Acquisition
-Private Equity
-Debt and equity capital markets
11. Research -Research reports on which companies should be bought or sold
12. Private Client - Retail Brokerage
13. Sales and -Fixed income
Trad- ing
-Equity
-Bonds and debt
14. Market-Maker Is a broker-dealer that chooses to display quotes to buy or sell a
specific amount of securities at specific prices
-Quotes are firm for at least 100 shares=round
lots Make Spreads
15. Ask or Offer Represents a clients purchase price
-This is the price at which the MM will sell
16. Investment Is a firm that charges customers a fee for managing their securities
Ad- viser
portfolios.
-The fee is based on the assets under management
17. Municipal Advi- -An IA is considered a large or institutional customer of a broker dealer
sor
Is a person or firm who advises municipalities on bond otterings and must
be registered with the SEC
, SIE Exam Chapters 1-5 with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
-Typically advise issuers (ex: state, county or city) regarding the
structure and timing of a new ottering.
18. institutional in- Customers with a large amount of assets
vestor -Banks
-Insurance companies
-Investment companies
-corporations, partnerships
-Registered investment advisers
-public and private pension plans
-Hedge funds
19. Retail Investor - Individual Investors who are not defined as institutional investors
20. Accredited Institutional investors as well as individuals who have met a financial test
In- vestors
-Net worth of $1,00,000 excluding primary residence
-Annual income of $200,000 in each of the last 2 years, $300,000 for
21. Qualified Insti- married couples
tutional
Buyer (QIB) Buyer must own and invest a minimum of $100 of securities
-cannot be a natural person
22. primary market market for selling financial assets that can only be redeemed by the original
holder
Issuer-Underwriter-Investor
23. IPO Initial Public Ottering
24. secondary Trading markets that facilitate the exchange of existing financial
mar- ket
instruments among investors
25.
, SIE Exam Chapters 1-5 with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
Non-Exchnage Often low prices and thinly traded
Issues (OTC)
-Two systems which otter real-time quotations:
1. OTCBB (Bulletin Board)
2. OTC Pink Markets
26. OTC Pink Markets May be non-reporting companies
27. Trader Execute trades for their firm or their firms clients
-Do not maintain an inventory
28. Fourth Market transactions made directly between large institutional buyers and sellers of
secu- rities
29. Dark Pools Provides liquidity for large institutional investors and high-frequency traders.
-Quotes are not disseminated to the public
-Limits impact on the market
-Anonymous
30. DTTC: Depository Provides cleaning, settlement and information services for its members
Trust and Clear- -Is parents of the National Securities Clearing Corporation
ing Corp
-Guarantees Settlements
-Removes counterparty risk
-Transactions among members are completed through computerized
31. Introducin bookkeep- ing entries.
g Firms
-Omnibus
-Fully Disclosed
32. omnibus -A single account is set up at the clearing account
-Specific client information is maintained by the introducing firm
-Record-keeping responsibilities rest with the introducing firm
+4
