1 for specific request mail
STC SIE Exam Prep Questions and Correct Answers |
Latest Update
Who keeps track of the shareholders of a mutual fund?
A. The custodian bank
B. The transfer agent
C. The investment adviser
D. The underwriter
Assignment Expert
Ans: B. The transfer agent
Guru01 - Stuvia
Which of the following choices would NOT be subject to the holding
period restriction under Rule 144?
A. Restricted stock acquired under an investment letter
2026
B. Restricted stock acquired under a stock option plan
C. Control stock acquired under a private placement
©
D. Control stock acquired through an open-market purchase
Ans: D. Control stock acquired through an open-market purchase
There is a required holding period of six months for all restricted stock.
Restricted stock is unregistered stock that was acquired as a result of a
private placement. There is no required holding period for control stock.
However, if an affiliate (control person) acquires stock as a result of a
private placement, this stock would be considered restricted stock rather
than control stock and would be subject to the holding period. Control
stock acquired as a result of an open-market purchase is exempt from the
holding period.
, 2 for specific request mail
The investments that tend to perform the WORST during periods of
inflation are:
A. Bonds
B. Mutual Funds
C. ETFs
D. Gold and Silver
Ans: A. Bonds
Assignment Expert
If a customer exceeds SIPC limits:
A. The customer will receive cash rather than his securities
Guru01 - Stuvia
B. The customer is a secured creditor
C. The customer doesn't have a claim to the excess amount
2026
D. The customer is a general creditor
Ans: D. The customer is a general creditor
©
When discussing the purchase of a variable annuity with a client, the RR
is not required to disclose:
A. Surrender fees
B. Mortality fees
C. Probate fees
D. Administrative fees
Ans: C. Probate fees
Probate fees and costs are associated with establishing the validity of a
will, which is not a disclosure item for annuities. However, surrender,
mortality, and administrative fees must be disclosed
, 3 for specific request mail
Jamie has inherited 500 shares of an investment company. She calls her
broker to redeem the shares and is informed that the kind of investment
company she owns makes no provision for future purchases or
redemptions. What kind of investment company does she own?
A. An open-end fund
B. A closed-end fund
C. A unit investment trust
D. A face-amount certificate company
Assignment Expert
Ans: B. A closed-end fund
Guru01 - Stuvia
A closed-end fund makes no provision for future purchases or
redemptions from the issuing fund.
Which of the following is TRUE if a mutual fund investor chooses to
implement a systematic withdrawal plan from the fund?
2026
A. The dividends and capital gains that are generated from the fund will
©
be sufficient to make the payments.
B. All payments will end on a specific date.
C. The amount of each payment will remain the same.
D. The withdrawals result in a reduction of capital.
Ans: D. The withdrawals result in a reduction of capital.
The only true statement is that the plan results in the reduction of
capital, since shares will need to eventually be redeemed to make
payments.
A husband and wife have combined earnings of greater than $300,000 in
each of the last two years. If it's reasonably expected that this level of
income will remain the same, the couple is considered:
, 4 for specific request mail
A. A qualified investor
B. An accredited investor
C. An institutional investor
D. A qualified institutional buyer (QIB)
Ans: B. An accredited investor
Accredited investors have a net worth of $1 million (excluding their
primary residence) or annual income of $200,000 in each of the last two
years. For married couples to be considered an accredited investor, they
Assignment Expert
need to have income of at least $300,000. A qualified institutional buyer
(QIB) must be institution with $100 million in assets under management
Guru01 - Stuvia
(AUM), but is NOT a natural person.
All of the following persons are permitted to be named as a trusted
contact person for a senior investor, EXCEPT:
2026
A. A family member
©
B. A business associate
C. A law firm
D. A friend
Ans: C. A law firm
To be a trusted contact person for a senior investor, the only
requirements are that the person must be a natural person (not a law
firm) and be at least 18 years old.
Which of the following risks does not apply to both foreign and domestic
debt instruments?
A. Political
STC SIE Exam Prep Questions and Correct Answers |
Latest Update
Who keeps track of the shareholders of a mutual fund?
A. The custodian bank
B. The transfer agent
C. The investment adviser
D. The underwriter
Assignment Expert
Ans: B. The transfer agent
Guru01 - Stuvia
Which of the following choices would NOT be subject to the holding
period restriction under Rule 144?
A. Restricted stock acquired under an investment letter
2026
B. Restricted stock acquired under a stock option plan
C. Control stock acquired under a private placement
©
D. Control stock acquired through an open-market purchase
Ans: D. Control stock acquired through an open-market purchase
There is a required holding period of six months for all restricted stock.
Restricted stock is unregistered stock that was acquired as a result of a
private placement. There is no required holding period for control stock.
However, if an affiliate (control person) acquires stock as a result of a
private placement, this stock would be considered restricted stock rather
than control stock and would be subject to the holding period. Control
stock acquired as a result of an open-market purchase is exempt from the
holding period.
, 2 for specific request mail
The investments that tend to perform the WORST during periods of
inflation are:
A. Bonds
B. Mutual Funds
C. ETFs
D. Gold and Silver
Ans: A. Bonds
Assignment Expert
If a customer exceeds SIPC limits:
A. The customer will receive cash rather than his securities
Guru01 - Stuvia
B. The customer is a secured creditor
C. The customer doesn't have a claim to the excess amount
2026
D. The customer is a general creditor
Ans: D. The customer is a general creditor
©
When discussing the purchase of a variable annuity with a client, the RR
is not required to disclose:
A. Surrender fees
B. Mortality fees
C. Probate fees
D. Administrative fees
Ans: C. Probate fees
Probate fees and costs are associated with establishing the validity of a
will, which is not a disclosure item for annuities. However, surrender,
mortality, and administrative fees must be disclosed
, 3 for specific request mail
Jamie has inherited 500 shares of an investment company. She calls her
broker to redeem the shares and is informed that the kind of investment
company she owns makes no provision for future purchases or
redemptions. What kind of investment company does she own?
A. An open-end fund
B. A closed-end fund
C. A unit investment trust
D. A face-amount certificate company
Assignment Expert
Ans: B. A closed-end fund
Guru01 - Stuvia
A closed-end fund makes no provision for future purchases or
redemptions from the issuing fund.
Which of the following is TRUE if a mutual fund investor chooses to
implement a systematic withdrawal plan from the fund?
2026
A. The dividends and capital gains that are generated from the fund will
©
be sufficient to make the payments.
B. All payments will end on a specific date.
C. The amount of each payment will remain the same.
D. The withdrawals result in a reduction of capital.
Ans: D. The withdrawals result in a reduction of capital.
The only true statement is that the plan results in the reduction of
capital, since shares will need to eventually be redeemed to make
payments.
A husband and wife have combined earnings of greater than $300,000 in
each of the last two years. If it's reasonably expected that this level of
income will remain the same, the couple is considered:
, 4 for specific request mail
A. A qualified investor
B. An accredited investor
C. An institutional investor
D. A qualified institutional buyer (QIB)
Ans: B. An accredited investor
Accredited investors have a net worth of $1 million (excluding their
primary residence) or annual income of $200,000 in each of the last two
years. For married couples to be considered an accredited investor, they
Assignment Expert
need to have income of at least $300,000. A qualified institutional buyer
(QIB) must be institution with $100 million in assets under management
Guru01 - Stuvia
(AUM), but is NOT a natural person.
All of the following persons are permitted to be named as a trusted
contact person for a senior investor, EXCEPT:
2026
A. A family member
©
B. A business associate
C. A law firm
D. A friend
Ans: C. A law firm
To be a trusted contact person for a senior investor, the only
requirements are that the person must be a natural person (not a law
firm) and be at least 18 years old.
Which of the following risks does not apply to both foreign and domestic
debt instruments?
A. Political
