SIE Chapter 3

Question 1

Customer account statement are required to be sent quarterly unless the account contains

Accepted Answer

penny stocks

Question 2

Investor sells put options, buys the underlying stock to keep the price from falling

Accepted Answer

supporting

Question 3

how long must a B/D hold the record of a complaint?

Accepted Answer

4 years

Question 4

Investor sells stock at a loss to offset a capital gain

Accepted Answer

a wash sale

Question 5

Placing orders to buy or sell stock ahead of orders that could move the market

Accepted Answer

Front running

Question 6

If the price of the stock falls to a certain price, then the investor wants to buy the stock.

Accepted Answer

Buy Limit

Question 7

All of the following would be legal investments in an IRA EXCEPT

Accepted Answer

WL issued by insurance company

Question 8

which of the following is a taxable event for an investor when it occurs?

Accepted Answer

Cash dividend distribution

Question 9

Falsely reporting trades that never occurred or entering orders to influence stock price

Accepted Answer

Marketing the close

Question 10

All are true about an investor that sells a stock short EXCEPT

Accepted Answer

loss in limited to the amount of the investment

Question 11

Entering orders designed to keep a stock from rising

Accepted Answer

Capping

Question 12

Transactions designed to give the illusion of increased activity or volume in a stock

Accepted Answer

Matched order

Question 13

When an investor is long a stock

Accepted Answer

the investor is bullish

Question 14

Any activity intended to keep a stock price stable

Accepted Answer

Pegging

Question 15

Which of the following securities will settle regular way, T+1?

Accepted Answer

treasury bond

Questions 15