SIE Exam Chapters 1-7 with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
Who obtains the CUSIP for a municipal bond? ✔Correct Answer-The underwriter
If a company splits their stock, who maintains a record of shareholders eligible to receive the
additional shares? ✔Correct Answer-The transfer agent
An investor can be granted an extension of time by ✔Correct Answer-FINRA and the
transacting exchange
Who is exempt from FINRA rule 5130, which prohibits the purchase of IPO's by member firms
and associated persons? ✔Correct Answer-An associated person whose limited registration
permits selling only investment company products
Rule 147 offering ✔Correct Answer-80 % of proceeds must be invested in the state, 100% of
purchasers must reside in the state, 80% of assets and revenue must be in the state
Is the OTC an auction market? ✔Correct Answer-NO
When is the first time that a broker/dealer can accept payment from a customer for a new
issue? ✔Correct Answer-On the effective date
Reg A ✔Correct Answer-Small issue exemption ($5 million or less)
Restricted Stock must be paid for ✔Correct Answer-In its entirety
A well-known seasoned issuer is issuing securities in an APO. To meet Act of '33 disclosure
requirements, the issuer may use an ✔Correct Answer-Free-writing prospectus
Under Reg D rule 506, how much money can be raised within 12 months ✔Correct Answer-An
unlimited amount
Under Rule 144, when does an affiliate need to file a Notice of Proposed Sale with the SEC?
✔Correct Answer-If the sale involves more than 5,000 shares ( or if the aggregate dollar amount
is greater then $50,000 in any 90-day period)
A research analyst has a meeting with an employee from investment banking. This is
permissible if ✔Correct Answer-the meeting is attended by a compliance officer
, To be considered an accredited investor, each of the past 2 years the investors income must
exceed ✔Correct Answer-200,000 individual, 300,000 joint
Which of the following transactions uses an offering circular? ✔Correct Answer-Reg A (instead
of prospectus)
Announcement that must be filed in connection with a Reg D offering is ✔Correct Answer-An
offering memorandum
When can a statutory prospectus be presented to an existing client of the brokerage firm?
✔Correct Answer-After the cooling-off period and after the issue is designated as within
compliance (this is the final prospectus)
Under Reg A+ Tier 2, what is the max amount of money that may be raised ✔Correct Answer-
50 million with no more than 15 million by affiliates
f a market maker posts a quote of 12.00-12.10 (25x10) he is willing to ✔Correct Answer-Buy
2,500 shares at $12 and sell 1,000 shares at $12.10
Where do municipals trade? ✔Correct Answer-On OTC
Quiet period for APO ✔Correct Answer-3 days from effective date
Exempt securities ✔Correct Answer-commercial paper that has a maturity not exceeding 270
days, a security issued by a nonprofit organization, US gvmt securities
When an entity is a market maker in a security it is deemed to be acting as ✔Correct Answer-
A principal (dealer)
What is a permissible way for a shareholder to sell into a tender offer? ✔Correct Answer-
Must be net long
Fourth Market ✔Correct Answer-Trades executed directly between investors using Instinet
electronic system
Underwriting agreement is between who? ✔Correct Answer-the issuer and the managing
underwriter
A Rule 144 filing for the sale of restricted securities by control persons is subject to which of the
following time limitations? ✔Correct Answer-90 days
How long is the holding period for controlled perons? ✔Correct Answer-6 mo
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
Who obtains the CUSIP for a municipal bond? ✔Correct Answer-The underwriter
If a company splits their stock, who maintains a record of shareholders eligible to receive the
additional shares? ✔Correct Answer-The transfer agent
An investor can be granted an extension of time by ✔Correct Answer-FINRA and the
transacting exchange
Who is exempt from FINRA rule 5130, which prohibits the purchase of IPO's by member firms
and associated persons? ✔Correct Answer-An associated person whose limited registration
permits selling only investment company products
Rule 147 offering ✔Correct Answer-80 % of proceeds must be invested in the state, 100% of
purchasers must reside in the state, 80% of assets and revenue must be in the state
Is the OTC an auction market? ✔Correct Answer-NO
When is the first time that a broker/dealer can accept payment from a customer for a new
issue? ✔Correct Answer-On the effective date
Reg A ✔Correct Answer-Small issue exemption ($5 million or less)
Restricted Stock must be paid for ✔Correct Answer-In its entirety
A well-known seasoned issuer is issuing securities in an APO. To meet Act of '33 disclosure
requirements, the issuer may use an ✔Correct Answer-Free-writing prospectus
Under Reg D rule 506, how much money can be raised within 12 months ✔Correct Answer-An
unlimited amount
Under Rule 144, when does an affiliate need to file a Notice of Proposed Sale with the SEC?
✔Correct Answer-If the sale involves more than 5,000 shares ( or if the aggregate dollar amount
is greater then $50,000 in any 90-day period)
A research analyst has a meeting with an employee from investment banking. This is
permissible if ✔Correct Answer-the meeting is attended by a compliance officer
, To be considered an accredited investor, each of the past 2 years the investors income must
exceed ✔Correct Answer-200,000 individual, 300,000 joint
Which of the following transactions uses an offering circular? ✔Correct Answer-Reg A (instead
of prospectus)
Announcement that must be filed in connection with a Reg D offering is ✔Correct Answer-An
offering memorandum
When can a statutory prospectus be presented to an existing client of the brokerage firm?
✔Correct Answer-After the cooling-off period and after the issue is designated as within
compliance (this is the final prospectus)
Under Reg A+ Tier 2, what is the max amount of money that may be raised ✔Correct Answer-
50 million with no more than 15 million by affiliates
f a market maker posts a quote of 12.00-12.10 (25x10) he is willing to ✔Correct Answer-Buy
2,500 shares at $12 and sell 1,000 shares at $12.10
Where do municipals trade? ✔Correct Answer-On OTC
Quiet period for APO ✔Correct Answer-3 days from effective date
Exempt securities ✔Correct Answer-commercial paper that has a maturity not exceeding 270
days, a security issued by a nonprofit organization, US gvmt securities
When an entity is a market maker in a security it is deemed to be acting as ✔Correct Answer-
A principal (dealer)
What is a permissible way for a shareholder to sell into a tender offer? ✔Correct Answer-
Must be net long
Fourth Market ✔Correct Answer-Trades executed directly between investors using Instinet
electronic system
Underwriting agreement is between who? ✔Correct Answer-the issuer and the managing
underwriter
A Rule 144 filing for the sale of restricted securities by control persons is subject to which of the
following time limitations? ✔Correct Answer-90 days
How long is the holding period for controlled perons? ✔Correct Answer-6 mo
