SIE Questions
The SEC is a federal government agency responsible for all of the following, EXCEPT: -
Answer Prosecute violators of criminal activity
- this is under the Department of Justice
The SEC is responsible for:
- creating/enforcing penalties for violation of federal securities law
- Protect US investors
- Require issuers to provide full and fair disclosure regarding their securities to investors
Which of the following is the exchange for options trading and the SRO for broker-
dealers engaging in the options market? - Answer CBOE
- Chicago Board Options Exchange
BFDIC is associated with which of the following? - Answer Protecting bank account
deposits in the US banks from bankruptcy
Following the execution of a trade, custody of client assets and securities are
maintained by a(n): - Answer Clearing broker-dealer
The main objectives of the Securities Act of 1933 are to: - Answer Provide full and fair
disclosures regarding new issues and to prevent misrepresentation and fraud in the sale
of securities
When an issuer sells securities in a primary offering, the net proceeds are paid to the: -
Answer Issuer
Which the following underwriting agreements guarantees the issuer of an initial public
offering (IPO) that all of the shares will be purchased? - Answer Firm Commitment
Which of the following underwriting agreements allows an underwriter to step in, buy
remaining shares, and then sell those shares to the public? - Answer Standby
The cooling-off period is a minimum of _____ days - Answer 20
An investor owned a stock for 18 months before selling it to another investor. This trade
placed in the: - Answer Secondary market
Which of the following is considered an electronic trading exchange in the First Market?
- Answer NASDAQ
Who receives the net proceeds from securities that are sold in the secondary market? -
Answer Investors
, ABC is quoted at 15 - 16 what is the ask? - Answer 16
Which of the following terms is NOT associated with the secondary market? - Answer
Public offering price
- Only in the primary market
All of the following are contained in a confirmation statement, except: - Answer Profit or
loss on the security position traded
The primary reason investors buy stock in a corporation is to: - Answer Financially
benefit if the share price increases
Which of the following has the lowest priority claim on assets if a corporation goes
bankrupt? - Answer Common stockholders
What is the maximum loss for a corporation's stockholder? - Answer The value of the
investment in the company
How many shares of stock are in a round lot? - Answer 100
Which type of security must all corporations issue? - Answer Common stock
All of the following are true regarding treasury stock, EXCEPT: - Answer It has voting
rights
- Treasury stocks are authorized but not outstanding, does not receive dividends, and
have been issued and repurchased by the company
If XYZ Corporation issued 10 million shares of common stock and has 1 million in its
treasury, how many shares are considered outstanding? - Answer 9 million = 10 million
- 1 million
Outstanding Shares = Issued Shares - Treasury Shares
Which of the following is an arbitrary number used for accounting purposes? - Answer
Par value
Which stock valuation method is determined by supply and demand? - Answer Market
value
Investors do NOT vote on which of the following? - Answer Amounts of dividend
payments
What determines the number of votes a stockholder has? - Answer Number of shares
owned
Which of the following voting methods gives smaller shareholders a better chance of
gaining representation on the Board of Directors? - Answer Cumulative voting
The SEC is a federal government agency responsible for all of the following, EXCEPT: -
Answer Prosecute violators of criminal activity
- this is under the Department of Justice
The SEC is responsible for:
- creating/enforcing penalties for violation of federal securities law
- Protect US investors
- Require issuers to provide full and fair disclosure regarding their securities to investors
Which of the following is the exchange for options trading and the SRO for broker-
dealers engaging in the options market? - Answer CBOE
- Chicago Board Options Exchange
BFDIC is associated with which of the following? - Answer Protecting bank account
deposits in the US banks from bankruptcy
Following the execution of a trade, custody of client assets and securities are
maintained by a(n): - Answer Clearing broker-dealer
The main objectives of the Securities Act of 1933 are to: - Answer Provide full and fair
disclosures regarding new issues and to prevent misrepresentation and fraud in the sale
of securities
When an issuer sells securities in a primary offering, the net proceeds are paid to the: -
Answer Issuer
Which the following underwriting agreements guarantees the issuer of an initial public
offering (IPO) that all of the shares will be purchased? - Answer Firm Commitment
Which of the following underwriting agreements allows an underwriter to step in, buy
remaining shares, and then sell those shares to the public? - Answer Standby
The cooling-off period is a minimum of _____ days - Answer 20
An investor owned a stock for 18 months before selling it to another investor. This trade
placed in the: - Answer Secondary market
Which of the following is considered an electronic trading exchange in the First Market?
- Answer NASDAQ
Who receives the net proceeds from securities that are sold in the secondary market? -
Answer Investors
, ABC is quoted at 15 - 16 what is the ask? - Answer 16
Which of the following terms is NOT associated with the secondary market? - Answer
Public offering price
- Only in the primary market
All of the following are contained in a confirmation statement, except: - Answer Profit or
loss on the security position traded
The primary reason investors buy stock in a corporation is to: - Answer Financially
benefit if the share price increases
Which of the following has the lowest priority claim on assets if a corporation goes
bankrupt? - Answer Common stockholders
What is the maximum loss for a corporation's stockholder? - Answer The value of the
investment in the company
How many shares of stock are in a round lot? - Answer 100
Which type of security must all corporations issue? - Answer Common stock
All of the following are true regarding treasury stock, EXCEPT: - Answer It has voting
rights
- Treasury stocks are authorized but not outstanding, does not receive dividends, and
have been issued and repurchased by the company
If XYZ Corporation issued 10 million shares of common stock and has 1 million in its
treasury, how many shares are considered outstanding? - Answer 9 million = 10 million
- 1 million
Outstanding Shares = Issued Shares - Treasury Shares
Which of the following is an arbitrary number used for accounting purposes? - Answer
Par value
Which stock valuation method is determined by supply and demand? - Answer Market
value
Investors do NOT vote on which of the following? - Answer Amounts of dividend
payments
What determines the number of votes a stockholder has? - Answer Number of shares
owned
Which of the following voting methods gives smaller shareholders a better chance of
gaining representation on the Board of Directors? - Answer Cumulative voting
