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Chapters 3 & 4 SIE Flashcards | StudBud
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Chapters 3 & 4 SIE
Chapters 3 & 4 SIE
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SIE exam prep.
Flashcards
19 cards
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Practice quiz
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Questions
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Answers
1
Which of the following statements is TRUE concerning the call provisions on a bond?
bondholder likely to exercise call provision when interest rates are rising
The issuer likely to exercise call provision when interest rates are fallin
Issuer is likely to exercise call provision when interest rates are rising
bondholder likely to exercise call provision when interest rates are fallin
2
If interest rates are rising, the prices of existing bonds will likely be:
fluctuating
Staying the same
rising
falling
3
Stocks have which of the following characteristics?
Cash Dividends
Semi-annual payments
Timely return of principal
Capital gain at maturity
4
A company is considering buying its stock in the secondary market. One of the regulatory concerns is:
The amount of commissions it will pay
Whether the stock is traded on an exchange
The number of broker-dealers it uses on any given day
The amount of money it will spend
5
Are You Ready To Kick Some SIE Ass?
YES
ALL DAY
YOU BETCHA
OF COURSE
6
Authorized shares of a company represent:
The number of share the company buys back from old accounts
The number of shares that a company is permitted to issue
The number of shares that a company has issued and sold to investors
The number of shares that a company has repurchased
7
A warrant has a sub price of $50. If market price of common stock is $56 & market price of the preferred stock is $75.
$25
$6
$19
$0
8
A co. involved in an internet-based business & plans to use earnings to get opportunities, doesn't plan to pay dividends
Cyclical Stock
Income Stock
Blue-Chip Stock
Growth Stock
9
The term "Level debt service" represents:
Principal payments that are equal each year
Interest payments that are equal each year
Interest and principal payments that are equal each year
Interest payments that are equal but all of the principal comes at maturity
10
Which of the following calls features is NOT disclosed on a bond confirmation?
CATASTOPHE
PARTIAL
IN-WHOLE
LOTTERY
11
The risk that an issuer may be unable to meet its debt service obligations is referred to as:
Business risk
Interest-rate risk
Credit RIsk
Market Risk
12
Which of the following statements is TRUE regarding warrants?
The subscription price is typically below the stock's current market price.
Warrants receive cash dividends.
Warrants are considered long-term.
Warrants are guaranteed by the Options Clearing Corporation.
13
An investor owns 1,000 shares preferred stock which has a 6% dividend. What quarterly amount will the investor receive?
$120
$60
$6,000
$1,500
14
When the first coupon for a bond offering covers a period of less than six months, it's referred to as a:
SHORT COUPON
VARIABLE COUPON
LONG COUPON
FLOATING COUPON
15
Which type of preferred stock may increase the most if the value of the company's common stock appreciates?
Callable preferred stock
Convertible Preferred Stock
Cumulative Preferred stock
participating preferred stock
16
Which of the following bonds is the MOST advantageous to a bondholder?
A bond with a put provision
A bond with a put provision
A bond with a partial call provision
A bond with an in-whole call provision
17
To prohibit mgmt & early investors from cashing out too early from IPO, underwriters will request which of the following
A lock-up agreement
A control securities agreement
A restricted securities agreement
A rule 144 agreement
18
An issuer of securities that's engaged in a stock buyback is NOT able to purchase its shares at:
9:30AM
3:33PM
2:00PM
10:00AM
19
Preemptive rights give stockholders the right to:
Purchase the common stock of an affiliated company
Purchase the warrants of the same company
Purchase the common stock of the same company
Purchase the preferred stock of the same company
