EXAMFX SIE Questions & Answers |
100% Correct Answers | Verified | Latest
2024 Version
What is the maximum amount of SIPC coverage available to each separate customer? - ✔✔$500,000
including up to $250,000 in cash
If a customer purchases securities and does not settle the account 4 business days, what should the
brokerage firm do first? - ✔✔Ask for an extension of time from the SRO or cancel the trade and sell off
the purchased securities
When must a customer who purchases securities in a cash or margin account pay for the securities? -
✔✔4 business days
What is the maximum insurance the SIPC provides customer accounts for unreturned cash? -
✔✔$250,000
If a customer purchases securities and does not settle the account in 4 business days, what is the
brokerage firm's first order of business? - ✔✔To sell off the purchased securities and freeze the account
for 90 days
What act covers the trading of securities after they have been issued, the regulation of exchanges, and
the regulation of broker/dealers? - ✔✔The Securities Exchange Act of 1934
What term describes the legislation that regulates the sale of securities at the state level? - ✔✔Blue Sky
laws
What entity is responsible for the safekeeping of an investment company's cash and securities? - ✔✔The
custodian
,Between what two parties does the underwriting agreement exist? - ✔✔The issuer and the managing
underwriter
What FINRA bylaw regulates to dealings between member firms? - ✔✔Uniform Practice Code
What FINRA bylaw defines the proper methods for handling violations of trade practice rules? - ✔✔Code
of Procedure
An underwriter is also known as what? - ✔✔Investment Banker
What act of legislation created The Securities and Exchange Commission? - ✔✔The Securities Exchange
Act of 1934
What FINRA bylaw is concerned with the settlement of disputes? - ✔✔Code of Arbitration
What is the maximum insurance the SIPC provides customer accounts for unreturned securities? -
✔✔$500,000
When a firm effects trades for its own account, it is known as the principal. In what capacity is it
considered to act? - ✔✔Dealer
What SRO enforces MSRB rules? - ✔✔FINRA
An investment adviser receives a fee for his services. What is this fee classified as? - ✔✔An operating
expense of the fund
Under Reg. T, what can a customer do if his account is frozen for 90 days? - ✔✔Purchase securities on a
cash basis
Whether the broker/dealer acted as an agent or a principal in a transaction must be disclosed on what
document? - ✔✔Trade confirmation
,If an investor wanted to purchase an unlisted security, where would the order be entered? - ✔✔In the
over-the-counter market
What are the NYSE trading hours? - ✔✔9:30 AM - 4:00 PM Eastern Time
After a security is issued in the primary market, it trades in what market? - ✔✔Secondary market
When is a "red herring" prospectus distributed? - ✔✔During the cooling-off period
What is the term for the date when the SEC receives a registration statement from an issuer? - ✔✔Filing
date
What type of securities offering cannot be advertised to the public? - ✔✔Regulation D
A listed security trading OTC is trading in what market? - ✔✔Third market
A publicly traded company issues more shares in order to finance a new factory. What type of offering is
this? - ✔✔Additional Public Offering (APO)
A formal offer to existing shareholders to purchase their stock above the current market price is what
kind of offer? - ✔✔Tender offer
Under Reg. A of the Securities Exchange Act of 1933, new issues valued at what amount may be exempt
from registration? - ✔✔5,000,000 or less
What rule sets down the requirements for the resale of restricted stock to the public? - ✔✔Rule 144
The proceeds from a sale of a security went directly to the issuer of the security. In what market did this
transaction occur? - ✔✔Primary market
, What is the term for securities that are not required to register with the SEC or meet the prospectus
requirements of the Securities Exchange Act of 1933? - ✔✔Exempt securities
A prospectus is the disclosure document for the public offering of new issues. What is the disclosure
document for private placements called? - ✔✔Offering memorandum
Who represents orders from the public on the trading floor of the NYSE? - ✔✔Floor broker
What is the only form of advertisement permitted by the Securities and Exchange Act of 1933 during the
cooling-off of a new issue? - ✔✔Tombstone
A trade between two institutions executed without an intervening broker/dealer would take place in
what market? - ✔✔The Forth Market
What type of prospectus may be distributed during the cooling-off period of a primary offering? -
✔✔Red Herring
In what type of offering the security sale proceeds go to a party other than the issuer, such as a major
shareholder or another corporation? - ✔✔Secondary offering
When a security is listed, it means that it trades on what? - ✔✔An exchange
Which Act was designed to prevent fraud in the issuing of securities? - ✔✔The Securities Act of 1933
How long is the time period granted to an unseasoned issuer to complete a shelf offering? - ✔✔Two
years
What is the term for a limit order that must be filled in its entirety or not at all? - ✔✔All of None (AON)
100% Correct Answers | Verified | Latest
2024 Version
What is the maximum amount of SIPC coverage available to each separate customer? - ✔✔$500,000
including up to $250,000 in cash
If a customer purchases securities and does not settle the account 4 business days, what should the
brokerage firm do first? - ✔✔Ask for an extension of time from the SRO or cancel the trade and sell off
the purchased securities
When must a customer who purchases securities in a cash or margin account pay for the securities? -
✔✔4 business days
What is the maximum insurance the SIPC provides customer accounts for unreturned cash? -
✔✔$250,000
If a customer purchases securities and does not settle the account in 4 business days, what is the
brokerage firm's first order of business? - ✔✔To sell off the purchased securities and freeze the account
for 90 days
What act covers the trading of securities after they have been issued, the regulation of exchanges, and
the regulation of broker/dealers? - ✔✔The Securities Exchange Act of 1934
What term describes the legislation that regulates the sale of securities at the state level? - ✔✔Blue Sky
laws
What entity is responsible for the safekeeping of an investment company's cash and securities? - ✔✔The
custodian
,Between what two parties does the underwriting agreement exist? - ✔✔The issuer and the managing
underwriter
What FINRA bylaw regulates to dealings between member firms? - ✔✔Uniform Practice Code
What FINRA bylaw defines the proper methods for handling violations of trade practice rules? - ✔✔Code
of Procedure
An underwriter is also known as what? - ✔✔Investment Banker
What act of legislation created The Securities and Exchange Commission? - ✔✔The Securities Exchange
Act of 1934
What FINRA bylaw is concerned with the settlement of disputes? - ✔✔Code of Arbitration
What is the maximum insurance the SIPC provides customer accounts for unreturned securities? -
✔✔$500,000
When a firm effects trades for its own account, it is known as the principal. In what capacity is it
considered to act? - ✔✔Dealer
What SRO enforces MSRB rules? - ✔✔FINRA
An investment adviser receives a fee for his services. What is this fee classified as? - ✔✔An operating
expense of the fund
Under Reg. T, what can a customer do if his account is frozen for 90 days? - ✔✔Purchase securities on a
cash basis
Whether the broker/dealer acted as an agent or a principal in a transaction must be disclosed on what
document? - ✔✔Trade confirmation
,If an investor wanted to purchase an unlisted security, where would the order be entered? - ✔✔In the
over-the-counter market
What are the NYSE trading hours? - ✔✔9:30 AM - 4:00 PM Eastern Time
After a security is issued in the primary market, it trades in what market? - ✔✔Secondary market
When is a "red herring" prospectus distributed? - ✔✔During the cooling-off period
What is the term for the date when the SEC receives a registration statement from an issuer? - ✔✔Filing
date
What type of securities offering cannot be advertised to the public? - ✔✔Regulation D
A listed security trading OTC is trading in what market? - ✔✔Third market
A publicly traded company issues more shares in order to finance a new factory. What type of offering is
this? - ✔✔Additional Public Offering (APO)
A formal offer to existing shareholders to purchase their stock above the current market price is what
kind of offer? - ✔✔Tender offer
Under Reg. A of the Securities Exchange Act of 1933, new issues valued at what amount may be exempt
from registration? - ✔✔5,000,000 or less
What rule sets down the requirements for the resale of restricted stock to the public? - ✔✔Rule 144
The proceeds from a sale of a security went directly to the issuer of the security. In what market did this
transaction occur? - ✔✔Primary market
, What is the term for securities that are not required to register with the SEC or meet the prospectus
requirements of the Securities Exchange Act of 1933? - ✔✔Exempt securities
A prospectus is the disclosure document for the public offering of new issues. What is the disclosure
document for private placements called? - ✔✔Offering memorandum
Who represents orders from the public on the trading floor of the NYSE? - ✔✔Floor broker
What is the only form of advertisement permitted by the Securities and Exchange Act of 1933 during the
cooling-off of a new issue? - ✔✔Tombstone
A trade between two institutions executed without an intervening broker/dealer would take place in
what market? - ✔✔The Forth Market
What type of prospectus may be distributed during the cooling-off period of a primary offering? -
✔✔Red Herring
In what type of offering the security sale proceeds go to a party other than the issuer, such as a major
shareholder or another corporation? - ✔✔Secondary offering
When a security is listed, it means that it trades on what? - ✔✔An exchange
Which Act was designed to prevent fraud in the issuing of securities? - ✔✔The Securities Act of 1933
How long is the time period granted to an unseasoned issuer to complete a shelf offering? - ✔✔Two
years
What is the term for a limit order that must be filled in its entirety or not at all? - ✔✔All of None (AON)
