A brokerage firm is permitted to hold fully paid customer securities if the

brkrge firm segregates those positions from margin &places them safekeeping

Investment banks perform all of the following functions EXCEPT:

accept time and demand deposits

Which of the following is true of a trust indenture?

allows a trustee to take action on behlf of a bndhldr in case bnd default

Which of the following os true regarding indications of Interest (IOI's)

They may be accepted during the cooling off period

Which of the following is a non-exempt security under the Securities Act of 1933?

Commercial Paper maturing in over 270 days

If a publicly traded corp declares bankruptcy

an 8k report must be filed w/in 4 business days

Which stment is true re: a brkrge firm holding fully paid customer securities? Brokerage firms:

Can hold fully paid scrts if segregated from marginable and kept safe

Which statement is TRUE regarding intrastate offerings under Rule 147?

Resale of scrts is Prmtted w/in state immdtly; resale is prhibited 6mths

A stabilizing bid is a bid for shares by the underwriters in an effort to:

Prop up the price of a new issue

You buy stock on the primary market, what have you done?

Paid the issuer or an underwriter for partial ownership of the issue

During the waiting period after the initial regstrtion stmt is filed with SEC, what may an issuing co. do?

Solicit indications of interest from likely investors

The underwriting spread is:

$ invst bank makes btwn cost to prchse&issrs scrty&the ^ price it sells at

A trustee in a bond issue

is paid by the issuing corporation

the main purpose of the Securities and Exchange Act of 1934 is to:

establish anti-fraud rules for security market participants

All of the following persons are prhbted from buying a new common stock under Rule 5130 EXCEPT:

Grandfather of a registered representative who lives in another state

All of the following securities would be exempt from state registration except:

Securities sold in an intra-state offering

All of the following are true of the Securities Act of 1933 except?

requires that all scrties are rgstered w/ fedgov't prior to offering 4 sale

Which statement is true about an introducing broker-dealer?

Introducing broker-dealers maintain their accts at a clearing firm

All of the following are benefits of a shelf registration EXCEPT:

1 rgstrtion covers a public offering of scrties for up to 5 yrs in advance

An issuer that registers scrties on an auto shelf rgstrtn stmt must offer those scrties to the public

w/in 3 yrs frm intial effec date of rgtration dpnding on kind of offering

Which statement is TRUE regarding trading of that cmpny's stock by an officer of a publicly traded co?

officers are not allowed to sell their own company stock short

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SIE Mastery IV

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Questions 34

Answers

1
A brokerage firm is permitted to hold fully paid customer securities if the
brkrge firm segregates those positions from margin &places them safekeeping
Cstmer identifies in writing specific scrties that wishes brkrge firm hold
Brkrge firm sends the customer a written receipt for securities being held
Customer gives a full poa to the brokerage firm and signs a rehypothecation
2
the 20 day period following the filing period of a security is known as the:
Pre-filing period
Holding period
Review segment
Cooling off period
3
Investment banks perform all of the following functions EXCEPT:
accept time and demand deposits
assist issuers in publicizing new issue offerings
distribute new issues on an agency basis
buy new securities offerings from issuers on a principal basis
4
Which of the following is true of a trust indenture?
allows a trustee to take action on behlf of a bndhldr in case bnd default
must be in place before any crprate bond issue is made avlble to the public
Each of the other answer's is true
rspnsbility of indpt 3 prty to appnt outside trustee to ovrsee rghts bndhld
5
The Trust Indenture Act of 1939 is concerned w/ and protects investors in which type of security?
Debt Secutities
Indentures
Unit Investment Trusts
Trusts
6
An issuer is required to make an 8k filing with the SEC for all of the following EXCEPT:
Declaration of cash dividend
Declaration of Bankruptcy
Election of new members of BOD
Proposal of Merger with another corporation
7
Which of the following os true regarding indications of Interest (IOI's)
They are binding commitments
They must be accompanied by a deposit
require the issuer to guarentee that the securities will in fact be issued
They may be accepted during the cooling off period
8
Which of the following is a non-exempt security under the Securities Act of 1933?
GNMA Pass Through Certificates
Commercial Paper maturing in over 270 days
Small Business Investment Company Shares
Fixed Annuity Contracts
9
If a publicly traded corp declares bankruptcy
a 10k report must be filed w/in 4 business days
an 8k report must be filed immediately
a 10k report must be filed immediately
an 8k report must be filed w/in 4 business days
10
Which of the following is a federally covered security?
A US Treasury Bond
A commodity futures contract
A stock listed on Nasdaq
A security sold to a natural person with $1m to invest
11
Which stment is true re: a brkrge firm holding fully paid customer securities? Brokerage firms:
can hold fully paid customer securites w/out restriction
can hold fully paid cstmr scrties if $ value of pstns kept in depository
cannot hold fully paid customer securities under any circumstances
Can hold fully paid scrts if segregated from marginable and kept safe
12
Which statement is TRUE regarding intrastate offerings under Rule 147?
Resale of scrts is prhbted w/in that state for 6mnths; outside state prmted
Resale of scrts is Prmtted w/in state immdtly; resale is prhibited 6mths
Resale of the securities is prohibited w/in and outside for 6mnths
Resale of scrts prmtted w/in&outside that state immdtly after initial offer
13
The Securities Act of 1933 is primarily concerned with registration of
non-exempt issues
Broker-dealers
self-regulatory organizations
exempt issues
14
A/an...cmmitment is a type of undrwrtng in which the undrwrter commits to sell a min # of shares or the offrng is cncld.
Competitive
Mini-Max
All or None
Firm
15
A stabilizing bid is a bid for shares by the underwriters in an effort to:
win an underwriting contract
collect inidications of interest from investors
Prop up the price of a new issue
Encourage sales in the secondary market
16
All of the following are exempt issues at the state level EXCEPT:
Municipal Bonds
Corporate Bonds
Commercial Paper under 270 days
US Treasury Bonds
17
You buy stock on the primary market, what have you done?
Paid the issuer or an underwriter for partial ownership of the issue
Paid a third party in order to become a holder of the issuer's debt
Paid another investor for partial ownership of the issuer
Lent money to the issuer
18
Which of the followingis subject to the regulation requirements of the Securities Act of 1933?
Municipal Debt
Eurodollar Debt
Foreign Government Debt
American Depositary Receipts
19
During the waiting period after the initial regstrtion stmt is filed with SEC, what may an issuing co. do?
Take out detailed ads promoting the security
Provider addt'l info to clients
Solicit indications of interest from likely investors
Begin accepting sales
20
All of the following are federal covered scrts EXCEPT:
OTC Securities
Shares in a Nasdaq-listed company
Bond issued by a corporation with stocks listed on NYSE
Shares issued by a mutual fund
21
The fdrl lgstltion that requires issuers of scrties to register the scrties and provide full disclosure to investors is?
The Securities Act of 1933
The Investment Company Act of 1940
The uniform Securities Act of 1956
The Securities and Exchange Act of 1934
22
The underwriting spread is:
$ invst bank makes btwn cost to prchse&issrs scrty&the ^ price it sells at
A business's profit/expenses
dffrnc btwn the cptal in an invstmnt bank's ledger&real captal it trades
The # of sponsers or underwriters an investment bank procures
23
Stabilizing bids may NOT be entered
At the POP
Above the POP
Below the POP
by the syndicate manager
24
A trustee in a bond issue
is appointed by bond holders
is typically a broker-dealer
is paid by the issuing corporation
is charged with the rspnsibility of protecting the issuer's claim to assets
25
the main purpose of the Securities and Exchange Act of 1934 is to:
Regulate the sake if new issue securites
establish anti-fraud rules for security market participants
Create the SEC
Establish anti-money laundering rules for securites market participants
26
All of the following stmts about SIPC are true EXCEPT:
SIPC is an insurance fund protecting customer accts against b-d insolvency
SIPC is a US Gov't Agency
SIPC is a non-profit agency
Every b-d registered under the Scrtes and Exchng Act 34 must member of SIPC
27
All of the following persons are prhbted from buying a new common stock under Rule 5130 EXCEPT:
Grandfather of a registered representative who lives in another state
Uncle of a registered representative who is supported by representative
Husband or wife of a registered representative
Brother of registed Representative
28
All of the following securities would be exempt from state registration except:
Municipal securities sold outside the issuer's state
Securities listed on NYSE
Securities sold in an intra-state offering
Mutual Funds
29
All of the following are true of the Securities Act of 1933 except?
The Act reqrs that cmpny's financial stmts be certified by indpndt accntnts
reqrs cmpnies2publicly disclose all rlvant fncl info abt scrties b4 offer
1 of purposes is to prhibit fraud and deceit in the marketing of securities
requires that all scrties are rgstered w/ fedgov't prior to offering 4 sale
30
Which statement is true about an introducing broker-dealer?
Introducing broker-dealers maintain their accts at a clearing firm
Introducing broker-dealers send cstmrs trade confirmation and stmts of acct
Introducing broker-dealers cannot be FINRA members
Introducing broker-dealer keep custody of customers funds and securities
31
All of the following are exempt issues under the Securities Act of 1933 EXCEPT:
Real Estate Investment Trusts
Municipal Revenue Bonds
Savings and Loan Issues
Us Gov't Bonds
32
All of the following are benefits of a shelf registration EXCEPT:
1 rgstrtion covers a public offering of scrties for up to 5 yrs in advance
A corp may get btr price for scrities durng the PO;they can wait for best t
The issuer may sell part of the scrties at a given time&another part later
1 rgstrtion covers a public offering of scrties for up to 3 yrs in advance
33
An issuer that registers scrties on an auto shelf rgstrtn stmt must offer those scrties to the public
w/in 3 yrs frm intial effec date of rgtration dpnding on kind of offering
Immediately
W/in 45 days of the effective date of the registration statement
w/in 1 year of the initial effective date of the registration
34
Which statement is TRUE regarding trading of that cmpny's stock by an officer of a publicly traded co?
officers are not allowed to sell their own company stock short
officers are only allwd to sell their own stock short with permission BOD
officers must disgorge any profits from gains on stock positions held 1 yr
Officers may not buy put options on their company's stock

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