SIE Exam
Which corporate voting procedures entitles a shareholder to one
vote per share, and votes must be divided evenly among the
candidates being voted on? - ✓✓Statutory voting
What market refers to the trading of exchange-listed securities in
the over-the-counter market? These trades allow institutional
investors to trade blocks of securities directly, rather than through
an exchange, providing liquidity and anonymity to buyers. -
✓✓Third market
An investor sells a naked call on Omikron for a $250 premium.
What is true regarding the investors position? - ✓✓The investor's
potential loss is unlimited
Which act created the SEC and empowered it with broad authority
over all aspects of the securities industry? - ✓✓Securities
Exchange Act of 1934
,A free tool provided by FINRA that is intended to help consumers
research the professional backgrounds of brokers and brokerage
firms, as well as investment advisor firms and advisors? -
✓✓BrokerCheck
The Federal Reserve Board performs what actions? - ✓✓It sets
monetary policy, but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis
is called a - ✓✓Rights offering
The difference between a bond's price and the conversion parity
price is referred to as - ✓✓conversion premium
An individual who meets what criteria must register as an
investment adviser? - ✓✓The individual provides advice or
analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to
receive dividends equal to the normally specified rate, as well as
, an additional dividend based on a specific predetermined
condition is called a - ✓✓participating preferred stock
Profit sharing plans have what characteristic? - ✓✓they can be
invested entirely in company stock
What is true regarding the Central Registration Depository (CRD)?
- ✓✓It was developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and
regulatory process into a single, nationwide computer system
Its computerized database contains the licensing and disciplinary
histories on more than 650,000 securities professionals and 5,200
securities firms
Who is responsible for maintaining fair and orderly markets for an
assigned set of listed firms? They operate both manually and
electronically to facilitate price discovery during market opens,
closes, and during periods of trading imbalances and instability. -
✓✓Designated Market Makers
If real GDP declined the last 3 quarters, how many more
consecutive quarters of decline would be needed to be classified
as an economic depression? - ✓✓3 quarters
Which corporate voting procedures entitles a shareholder to one
vote per share, and votes must be divided evenly among the
candidates being voted on? - ✓✓Statutory voting
What market refers to the trading of exchange-listed securities in
the over-the-counter market? These trades allow institutional
investors to trade blocks of securities directly, rather than through
an exchange, providing liquidity and anonymity to buyers. -
✓✓Third market
An investor sells a naked call on Omikron for a $250 premium.
What is true regarding the investors position? - ✓✓The investor's
potential loss is unlimited
Which act created the SEC and empowered it with broad authority
over all aspects of the securities industry? - ✓✓Securities
Exchange Act of 1934
,A free tool provided by FINRA that is intended to help consumers
research the professional backgrounds of brokers and brokerage
firms, as well as investment advisor firms and advisors? -
✓✓BrokerCheck
The Federal Reserve Board performs what actions? - ✓✓It sets
monetary policy, but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis
is called a - ✓✓Rights offering
The difference between a bond's price and the conversion parity
price is referred to as - ✓✓conversion premium
An individual who meets what criteria must register as an
investment adviser? - ✓✓The individual provides advice or
analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to
receive dividends equal to the normally specified rate, as well as
, an additional dividend based on a specific predetermined
condition is called a - ✓✓participating preferred stock
Profit sharing plans have what characteristic? - ✓✓they can be
invested entirely in company stock
What is true regarding the Central Registration Depository (CRD)?
- ✓✓It was developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and
regulatory process into a single, nationwide computer system
Its computerized database contains the licensing and disciplinary
histories on more than 650,000 securities professionals and 5,200
securities firms
Who is responsible for maintaining fair and orderly markets for an
assigned set of listed firms? They operate both manually and
electronically to facilitate price discovery during market opens,
closes, and during periods of trading imbalances and instability. -
✓✓Designated Market Makers
If real GDP declined the last 3 quarters, how many more
consecutive quarters of decline would be needed to be classified
as an economic depression? - ✓✓3 quarters
