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FINRA SIE - Securities Industry Essentials Exam (SIE)

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Page: 4 / 6
Total 188 questions

A confirmation indicates a 100-share purchase of Company ABC at $11. According to SEC rules, which of the following information is required to be stated on the confirmation?

A.

The firm's cost basis in the security

B.

The firm's inventory level at the time of trade execution

C.

That the firm did not act as a market maker in the security

D.

The capacity in which the firm acted when executing the trade

Which of the following responses describes a common feature of a hedge fund?

A.

Low liquidity for investors

B.

Low minimum investment requirement

C.

Primarily focused on fixed income investments

D.

Transparent as to the underlying investments and strategies

A company files a registration statement with the SEC to register a new Issue of securities. The company does not plan to sell all the registered shares at this time and instead plans to gradually sell new shares over a three-year period. This registration is called a:

A.

shelf registration.

B.

Rule 144 offering.

C.

best efforts offering.

D.

SEC Regulation S offering.

Which of the following rates is subject to the most frequent changes?

A.

Prime

B.

Call loan

C.

Discount

D.

Federal funds

Which of the following statements best describes an American Depositary Receipt (ADR)?

A.

ADRs trade like U.S. issues and are quoted in U.S. dollars.

B.

ADRs trade like U.S. issues and are quoted in foreign currency.

C.

ADRs represent shares of a U.S. security held in foreign commercial banks.

D.

ADRs represent shares of a foreign security held in foreign commercial banks.

A customer purchased $80,000 of Fund XYZ two years ago. He now wants to buy $50,000 of Fund LMN offered within the same fund family, which offers a $100,000 breakpoint under right of accumulation. Which of the following statements is true?

A.

The additional investment qualifies for a $100,000 breakpoint.

B.

Each fund requires contributions of $100,000 to qualify for a breakpoint.

C.

The customer must sign a new letter of intent to receive the $100,000 breakpoint on the additional purchase.

D.

The customer will receive a sales charge discount on his next purchase after the account balance of the fund reaches $100,000.

Under which of the following circumstances, if any, is a registered representative (RR) permitted to share in the profits and losses of security interests that the RR has purchased jointly with a customer?

A.

Only when the customer is an accredited investor

B.

Only if the RR’s firm is also a participant in the sharing arrangement

C.

When the profits and losses are proportionate to the amount contributed by the RR

D.

Under no circumstances

Which of the following types of debt securities has the highest liquidity?

A.

Treasury bonds

B.

Mortgage bonds

C.

Municipal bonds

D.

Corporate bonds

The provision that allows a bond issuer to purchase bonds from customers prior to the maturity date on the bond is known as a:

A.

Put

B.

Call

C.

Conversion

D.

Defeasement

Which of the following responses describes a warrant?

A.

An interest-paying security

B.

Redemption rights for a debt instrument

C.

The right to purchase a specified amount of shares

D.

A fixed-income security issued by a state or municipality