STC SIE STUDY GUIDE 2026 ACTUAL
QUESTIONS WITH SOLUTIONS GRADED A+
● List some responsibilities of a transfer agent Answer: Issue and cancel
securities, pay dividends and interest, mail shareholder reports, handle
lost or stolen certificates
● an RRs employer is referref to as? Answer: An RR's employer is
referred to as a Broker-Dealer (BD
● The third market is the term used to describe ____ and ____ listed
securities trading ________________ Answer: The third market is the
term used to describe NYSE and AMEX listed securities trading over-
the-counter.
● A _______ is any person that executes ________ transactions in
securities for its own account Answer: A dealer is any person that
executes principal transactions in securities for its own account.
● True or False: A hedge fund is an example of a client that may benefit
from a prime-brokerage arrangement. Answer: true
● QIB stands for Answer: Qualified Institutional Buyer (QIB)
, ● Explain a prime-brokerage arrangement Answer: A situation in which
multiple BDs execute a client's trades and report them to one
independent BD for settlement
● What are the Pink Sheets Answer: A real-time electronic quotation
system for OTC equities
● Define the term dealer Answer: A person engaged in the business of
buying securities for, and selling securities from, his own account
● List some examples of issuers Answer: Corporations, the U.S.
Treasury, foreign governments, states and other municipalities
● The ______________ is where trades of NYSE or AMEX exchange-
listed securities occur in the over-the-counter market Answer: The third
market is where trades of NYSE or AMEX exchange-listed securities
occur in the over-the-counter market
● Which department of a broker-dealer makes recommendations to
investors? Answer: sales
● Where can you find quotes for stocks not listed on an exchange or
Nasdaq Answer: The OTCBB and Pink Sheets
QUESTIONS WITH SOLUTIONS GRADED A+
● List some responsibilities of a transfer agent Answer: Issue and cancel
securities, pay dividends and interest, mail shareholder reports, handle
lost or stolen certificates
● an RRs employer is referref to as? Answer: An RR's employer is
referred to as a Broker-Dealer (BD
● The third market is the term used to describe ____ and ____ listed
securities trading ________________ Answer: The third market is the
term used to describe NYSE and AMEX listed securities trading over-
the-counter.
● A _______ is any person that executes ________ transactions in
securities for its own account Answer: A dealer is any person that
executes principal transactions in securities for its own account.
● True or False: A hedge fund is an example of a client that may benefit
from a prime-brokerage arrangement. Answer: true
● QIB stands for Answer: Qualified Institutional Buyer (QIB)
, ● Explain a prime-brokerage arrangement Answer: A situation in which
multiple BDs execute a client's trades and report them to one
independent BD for settlement
● What are the Pink Sheets Answer: A real-time electronic quotation
system for OTC equities
● Define the term dealer Answer: A person engaged in the business of
buying securities for, and selling securities from, his own account
● List some examples of issuers Answer: Corporations, the U.S.
Treasury, foreign governments, states and other municipalities
● The ______________ is where trades of NYSE or AMEX exchange-
listed securities occur in the over-the-counter market Answer: The third
market is where trades of NYSE or AMEX exchange-listed securities
occur in the over-the-counter market
● Which department of a broker-dealer makes recommendations to
investors? Answer: sales
● Where can you find quotes for stocks not listed on an exchange or
Nasdaq Answer: The OTCBB and Pink Sheets
