FINRA SIE Exam 2 Questions with 100%
Correct Answers Latest Version 2025
Graded A+
Who rates commercial paper? - Correct Answer-Moody's, Standard and Poor's, Fitch
NOT BEST's
BEST's DOESNT DO A THING
Treasury notes and Bonds are registered in?
A) Bearer securities
B) Registered to interest only
C) Registered to principal only
D) Fully registered in book entry form - Correct Answer-D
Government and Corporate are registered in book entry form
Which statements are true regarding the relationship interest rates and preferred stock?
- Correct Answer-When interest rates rise preferred stock prices will fall
When interest rates fall the preferred stock prices will rise.
They are inverse! Similar to Bonds
At the time of "when and as if issued" trade the:
I Amount of accrued interest due to the under writer is known
II Amount of accrued interest due to the underwriters is not known
III Settlement date is known
IV Settlement date is not known - Correct Answer-II and IV
Interest due is now known
, Settlement date is not known
Which of the following are defined as investment companies under the Investment
Company Act of 1940 - Correct Answer-1) Management Company
2) Unit Investment Trust
3) Face Amount Certificate Company
( Real Estate Investment Trust are not considered under this act)
Constitutional Debt Limits are imposed on the issuance of? - Correct Answer-General
Obligation bonds
(Moral obligation bonds are not subject to debt limits they are issued in desperation)
Which of the following pay dividends?
I Warrants
II ADR's
III Preferred Stocks
IV Real Estate Investment Trust Shares - Correct Answer-II , III , IV
Warrants are the only ones that do not pay dividends
Which rights do shareholders in a management company have?
I Vote for the Board of Directors
II Vote for the investment adviser of the fund
III Receive semi-annual and annual reports
IV Choose the broker who executes the portfolio transactions - Correct Answer-They
have the following rights
(Voting for BOD, Voting for the adviser, Receive reports)
Trust indenture of a Bond contains the following information? - Correct Answer-Interest
Rate
Maturity
Collateral backing the issue
Correct Answers Latest Version 2025
Graded A+
Who rates commercial paper? - Correct Answer-Moody's, Standard and Poor's, Fitch
NOT BEST's
BEST's DOESNT DO A THING
Treasury notes and Bonds are registered in?
A) Bearer securities
B) Registered to interest only
C) Registered to principal only
D) Fully registered in book entry form - Correct Answer-D
Government and Corporate are registered in book entry form
Which statements are true regarding the relationship interest rates and preferred stock?
- Correct Answer-When interest rates rise preferred stock prices will fall
When interest rates fall the preferred stock prices will rise.
They are inverse! Similar to Bonds
At the time of "when and as if issued" trade the:
I Amount of accrued interest due to the under writer is known
II Amount of accrued interest due to the underwriters is not known
III Settlement date is known
IV Settlement date is not known - Correct Answer-II and IV
Interest due is now known
, Settlement date is not known
Which of the following are defined as investment companies under the Investment
Company Act of 1940 - Correct Answer-1) Management Company
2) Unit Investment Trust
3) Face Amount Certificate Company
( Real Estate Investment Trust are not considered under this act)
Constitutional Debt Limits are imposed on the issuance of? - Correct Answer-General
Obligation bonds
(Moral obligation bonds are not subject to debt limits they are issued in desperation)
Which of the following pay dividends?
I Warrants
II ADR's
III Preferred Stocks
IV Real Estate Investment Trust Shares - Correct Answer-II , III , IV
Warrants are the only ones that do not pay dividends
Which rights do shareholders in a management company have?
I Vote for the Board of Directors
II Vote for the investment adviser of the fund
III Receive semi-annual and annual reports
IV Choose the broker who executes the portfolio transactions - Correct Answer-They
have the following rights
(Voting for BOD, Voting for the adviser, Receive reports)
Trust indenture of a Bond contains the following information? - Correct Answer-Interest
Rate
Maturity
Collateral backing the issue
