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FINRA SIE exam final update Questions and
Answers |With 100% Verified Solutions | Updated
& Verified | 2025
Rights of Common stock Owners - ✔ANASWER✔-Right to
inspect records/books Right to transfer ownership
Preemptive right
Divs
right to assets
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Vote
What percentage of stock Dividend would be considered a stock
split? - ✔ANASWER✔->25%
5:4 forward split with 300 shares @ 30$ - ✔ANASWER✔-
300 x 5/4
30 x ⅘
Preemptive Rights - ✔ANASWER✔-The right to keep
proportional ownership if more/less shares are issued
Preemptive Rights Security - ✔ANASWER✔-short term
security that gives owner option to buy certain # of shares @
smaller price than market value
Preemptive Rights Security length - ✔ANASWER✔-
Typically 30-60 days
Items that don't require shareholder vote - ✔ANASWER✔-
Cash dividend
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Stock dividend
Preemptive right security distribution
Items that require shareholder vote - ✔ANASWER✔-Split
Preferred stock/bond creation
Statutory Voting - ✔ANASWER✔-1:1 PER POSITION voting
Cumulative voting - ✔ANASWER✔-1:1 voting TOTAL
ADVANTAGE FOR SMALL INVESTOR
If Interest rates Rise: Preferred stock prices: -
✔ANASWER✔-fall
What are Warrants - ✔ANASWER✔-option to buy stock at
fixed price, usually above market price when the warrant is
issued
Attached to new stock/bonds as incentive
American Depository Receipts (ADR) - ✔ANASWER✔Allows
trading of foreign securities in US
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Priced in US dollars
Has Exchange Rate Risk
Term bond issue - ✔ANASWER✔-when every bond issued has
same interest rate and maturity
Serial Bonds - ✔ANASWER✔-every bond issued has
DIFFERENT interest and maturity dates
Balloon maturity - ✔ANASWER✔-bond w/ largest principal
will mature the latest
Series bonds - ✔ANASWER✔-Same maturity
DIFFERENT dates
-construction project, theres a known date, but dont need all the
money at once
Reinvestment risk - ✔ANASWER✔-risk that interest rates will
fall over the period of a bond
FINRA SIE exam final update Questions and
Answers |With 100% Verified Solutions | Updated
& Verified | 2025
Rights of Common stock Owners - ✔ANASWER✔-Right to
inspect records/books Right to transfer ownership
Preemptive right
Divs
right to assets
,2|Page
Vote
What percentage of stock Dividend would be considered a stock
split? - ✔ANASWER✔->25%
5:4 forward split with 300 shares @ 30$ - ✔ANASWER✔-
300 x 5/4
30 x ⅘
Preemptive Rights - ✔ANASWER✔-The right to keep
proportional ownership if more/less shares are issued
Preemptive Rights Security - ✔ANASWER✔-short term
security that gives owner option to buy certain # of shares @
smaller price than market value
Preemptive Rights Security length - ✔ANASWER✔-
Typically 30-60 days
Items that don't require shareholder vote - ✔ANASWER✔-
Cash dividend
,3|Page
Stock dividend
Preemptive right security distribution
Items that require shareholder vote - ✔ANASWER✔-Split
Preferred stock/bond creation
Statutory Voting - ✔ANASWER✔-1:1 PER POSITION voting
Cumulative voting - ✔ANASWER✔-1:1 voting TOTAL
ADVANTAGE FOR SMALL INVESTOR
If Interest rates Rise: Preferred stock prices: -
✔ANASWER✔-fall
What are Warrants - ✔ANASWER✔-option to buy stock at
fixed price, usually above market price when the warrant is
issued
Attached to new stock/bonds as incentive
American Depository Receipts (ADR) - ✔ANASWER✔Allows
trading of foreign securities in US
, 4|Page
Priced in US dollars
Has Exchange Rate Risk
Term bond issue - ✔ANASWER✔-when every bond issued has
same interest rate and maturity
Serial Bonds - ✔ANASWER✔-every bond issued has
DIFFERENT interest and maturity dates
Balloon maturity - ✔ANASWER✔-bond w/ largest principal
will mature the latest
Series bonds - ✔ANASWER✔-Same maturity
DIFFERENT dates
-construction project, theres a known date, but dont need all the
money at once
Reinvestment risk - ✔ANASWER✔-risk that interest rates will
fall over the period of a bond
