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SIE Review
SIE Review
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1
The stock price decreases in a...
Multiple stock split
Inverse stock split
Stock split
Reverse stock split
2
After liquidating a stock position an investor reinvested the proceeds into an S&P 500 Index fund. What risk was reduced
Business
Economic
Political
Market
3
Name the US Federal Government regulatory body tasked with the protection of investors in the financial market?
FINRA
All of them are
SEC
US Treasury Department
4
If a covered person is subject to any disciplinary action, the ____ will be treated as the person's new base date.
Original base date
Date of the completion of the disciplinary action
Date of the disciplinary action
None of the above
5
Blue Sky Laws add an additional layer of protection at what level?
The investor level
The market level
The firm level
All of the above
6
What type of securities can be issued in the primary market?
Debt Securities
Government Securities
Equity Securities
None of the above
7
Which fee is based on the number of shares sold and the level of involvement in the process?
Management fee
Underwriter fee
None of the above
Selling concession
8
What must be given to anyone who is offered the securities in a new issue?
Tombstone
Red herring
Prospectus
Form S-1
9
How many members are on the FOMC (Federal Open Market Committee)?
12
10
7
5
10
What represents the total return of a fixed income security?
Yield-to-maturity
Yield-to-call
Current yield
Total yield
11
If the settlement period of an asset is 1 day it will be notated as...
T
1T
T-1
T+1
12
What is the overall mission of the SEC?
To regulate large financial institutions in the US
To protect investors and the financial markets
To ensure investors make a good return on their investments
To regulate trade in financial markets
13
If an individual with a permissive registration is a principal, their registered supervisor must be a...
Principal
Representative
A representative OR a principal
None of the above
14
What type of treasury security has a maturity greater than 10 years?
T-Bills
T-Options
T-Bonds
T-Notes
15
In what market do brokers or dealers trade with institutional investors?
Secondary Market
The Third Market
Primary Market
The Fourth Market
16
What are the primary tools used by The Fed to promote monetary policy?
Reserve Requirements
All of the above
Open Market Operations
The discount rate
17
What rule details the emergency preparedness rule and Business Continuity Plan procedures?
Rule 5250
Rule 4200
Rule 3340
Rule 4370
18
Which type of adviser receives a flat fee for their services?
Static
Fee-based
Flat
Commission-based
19
Government agency bonds engage in the following activities:
Provide liquiditty to the mortgage markets
Securitize mortgages, pay interest income
Lending liquidity of last resort
Buy mortgages, securitize loans, dist through dealers
20
Which of the following is subject only to minimal SEC regulatory requirements?
A seasoned issue
An IPO
A best effort sale
A private placement sale
21
Portfolio rebalancing is guided by...
All of the above
The portfolio manager's discretion
The asset allocation structure of the portfolio
Current market rates
22
A short position is also known as a ___ position.
Lion
Tiger
Bull
Bear
23
Which of the following describes a broker-dealer?
An entity that assesses and assumes an issuer's risk for a fee
An individual who provides recommendations for a fee
A firm that gives assets with the goal of receiving financial returns
An individual or firm that buys and sells financial instruments
24
Any person who fails to pass a qualification exam by FINRA is permitted to retake the exam after a period of how long?
30 days
60 days
1 year
180 days
25
Systematic risk is also known as...
Unavoidable risk
Market risk
Undiversifiable risk
All of the above
26
Which type of quote has the foreign currency on top and domestic currency on the bottom?
Nominal
Real
Direct
Indirect
27
The following currently allow earned income contributions to be made beyond age 70 1/2 EXCEPT?
Employer sponsored 403(b)
Traditional IRA
Roth IRA
Employer sponsored 401(k)
28
In what phase of the business cycle show market-wide declines?
Contraction
Peak
Trough
Expansion
29
Which of these is a trust that cannot be altered once it is officially established and takes ownership of the assets?
Irrevocable trust
Revocable trust
Funded trust
Unfunded trust
30
What act states that new issues must be approved by the SEC before being sold to the public?
Securities Act
Public Securities Act
Newly Issued Securities Act
New Issues Act
31
If an investor was optimistic on the underlying asset, they would...
write and buy put options
Write call options or buy put options
write and buy call options
Buy call options or write put options
32
A ____ outlines the company's annual report & topics that will likely be voted on or discussed during an annual meeting.
Prospectus
10-K
Annual report
Proxy statement
33
Which of the following is included in the term "found"?
Formal findings
Informal agreements
Cautionary actions
Examination reports
34
By managing the discount rate, The Fed can influence...
Decisions of businesses and individuals
All of the above
The Federal Funds Rate
The general level of interest rates in the market
35
A ______ is a person's initial registration date.
Base date
Beginning date
Primary date
Active date
36
In what terms are interest rates normally quoted?
Weekly
Monthly
Quarterly
Annual
37
What would the settlement date period for government agency bonds?
Same business day
T + 1 as a government bond
T + 2 regular way
Next business day
38
Which of these is NOT used to determine the amount of liquidity risk an investment carries?
Trading volume
Real value
Bid-ask spread
Trading turnover
39
The term ___, as used in the Firms' Conclusions of Violations Rule, includes formal findings and adverse final actions
Formed
Established
Found
Discovered
40
Who creates and manages fiscal policy?
SEC
Congress
FINRA
Presidential Administration
41
Who has high exposure to currency risk?
The federal government
Domestic companies
All companies
Multinational companies
42
This market is referred to as a dark pool...
Secondary Market
The Third Market
The Fourth Market
Primary Market
43
The term ____ refers to governmental regulatory bodies and authorized non-governmental regulatory bodies.
Regulatory body
Governing body
Regulatory organization
Governing organization
44
Corporate actions affecting their securities may fall into what categories?
Mandatory, stipulated, optional
Optional, voluntary, disclosure-based
Shareholder notice, bondholder notice, SEC notification
Voluntary, mandatory, mandatory with options
45
FINRA is a non-profit, non-government organization.
True
False
46
How long must a member retain records of Form U5 filings, according to the recordkeeping requirements>
2 years
4 years
3 years
1 year
47
When does an IPO occur?
When a company repurchases stock
When a company issues new shares of stock
When a company issues new bonds
All of the above
48
What form would a corporation file, and with what organization, when seeking to sell a primary offering?
A K-1 to the IRS and SEC
A form S-1 to the SEC
An S-1 to the selling underwriter and SEC
A U-2 to the state administrator and SEC
49
The FDIC ensures the stability and integrity of the nation's financial system through which program:
Supervision
Insurance
Receivership Management
All of the above
50
What represents the total return of a fixed-income security?
Total yield
Yield-to-call
Current yield
Yield-to-maturity
51
All of the following securities do NOT include voting and preemptive rights, except...
Common stock
Secured bonds
Preferred stock
Debentures
52
What does FINRA stand for?
Financial Industry Regulatory Authority
None of the above
Financial Industry Regulation Applicants
Financial Industry Responsible Applicants
53
The secondary market provides a means of liquidity for investors.
True
False
54
The SEC is managed by 7 Commissioners who are appointed by the President of the United States to serve 10 year terms.
True
False
55
____ can also be described as the risk that unexpected inflation will have an unknown impact on the value of an asset.
Interest rate
Credit
Inflationary
Capital risk
56
What type of bond is backed by "user-fees" and "special assessments"?
Industrial Revenue Bonds
Yankee Bonds
Revenue Bonds
General Obligation Bonds
57
If a corporation wants to buy/sell securities, they must provide what?
A business plan
A prospectus
A corporate resolution
An external auditing of the firm
58
What type of order remains active until it is either executed or cancelled?
Good-till-cancelled order
Non-discretionary order
Stop-limit order
Discretionary order
59
In a trust, who is the individual who has control of the assets?
Beneficiary
Trustee
Tenant
Trustor
60
In most transactions, the asset is...
Physically delivered
Physically delivered or settled with cash; both are commonly used
Settled with cash
None of the above
61
The Uniform Application for Broker-Dealer Registration is also known as...
Form BD
Form BDW
Form BR
Form U6
62
What is the minimum number of registered General Securities Principals required of each member?
One
Three
There is NO minimum
Two
63
What can be used as a tool to identify different phases in the business cycle?
The discount rate
Composite indicator indices
GDP
Current market interest rates
64
A ___ transaction occurs when a client makes a trade without the advice of an agent.
Non-discretionary
Unregistered
Unprofessional
Unsolicited
65
There are currently ___ different Uniform Registration Forms that are used for electronic filing.
Six
Four
Five
Three
66
Which of the following is NOT a quality of REITs?
Diversification
Protection against rising interest rates
Stable dividend income
The ability to buy and sell shares easily
67
Most derivative contracts are settled...
Electronically
Physically
In cash
By book-entry
