SIE Practice Exam 1

A decline in the gross domestic product (GDP) must last for at least how many quarters to be considered a recession?

Which of the following actions is required when a firm receives cash in excess of $10,000 from one customer in one business day ?

A firm is a participant in a public offering. To sell a substantial amount of the securities to its customers, the firm agrees to repurchase the shares at no less than the original sales price. Such agreements are:

Under industry regulations, an initial purchase of $3,000 of common stock in a margin account requires a cash deposit of:

Regular way settlement on treasury bond is:

At the time of issuance, which of the following securities normally has the longest period of expiration?

Under the Securities Act of 1933, registration is required for which of the following securities?

In the event of a stock split , which of the following parties is required to maintain a record of the shareholders eligible to receive the additional shares?

FinCEN accomplishes its mission to safeguard the financial system from the abuses of financial crime, including terrorist financing and money laundering, by enforcing:

Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer opens and closes which of the following positions?

Which of the following considerations should a registered representative explain to a customer when recommending a 529 college savings plan?

When is interest on Treasury notes paid?

Which of the following actions is required if a broker0dealer's anti0money laundering (AML) program?

In a period of low inflation and economic recession, the Federal Reserve is expected to take which of the following actions?

Which of the following statements is true about all U.S, government agency issues?

In the over-the-counter market, the term "spread" refers to the difference between the:

What is the cost basis of an inherited mutual fund?

Under a system of statutory voting, a common stockholder has as many votes for each vacancy on the board of directors as the number of:

Under FINRA rules, non cash compensation connected with the sale of variable ckntraxrs includes all of the following items except:

No-load mutual funds may have lower expense ratios than load mutual funds for which of the following reasons?

Which of the following comparisons best describes the essential difference between a primary distribution and a secondary distribution?

An investor owns 100 shares of XYZ common stock at the current market price of $50 per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock position will be:

UTMA accounts are opened under the tax ID of the:

Which of the following communications with the public is considered misleading?

The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:

To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following product does a corporation issue?

Which of the following statements is true regarding a customer account held as tenants in common?

Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in which the mayor is currently seeking re-election. A municipal finance professional who resides in the town and works for ABC contributed $200 to the mayor's-election campaign 13 months ago. If the employee wants to support the campaign further without impacting the municipal securities business of the firm, he is permitted to make an additional contribution of up to what amount ?

A registered representative is reviewing the following portfolio: -30% ABC Energy Company -30% XYZ Health Care Company -30% Exchange-traded fund(tracks the S&P 500) -10% Money market funds Which of the following risks is inherent in this portfolio?

A Company announces a tender offer to its shareholders with the intent to buy a maximum of 1 million shares of its outstanding stock at $10 per share and sets no minimum number of shares to be purchased. An investor wants to participate in this offer and tenders his 1,000 share position. At the close of the offer period, only 900,000 shares have been tendered. How many if an, of the investor's shares will the company purchase?

Which of the following investments are generally traded according to their average line rather than their stated maturity dates?

Which of the following investment risks is the greatest risk in a variable life insurance policy?

The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar basis?

A savings account at a bank is guaranteed by which of the following entities?

Which of the following responses describes an advantage of index funds?

Stability in the value of a debt portfolio is greatest when:

At issue, which of the following debt securities mature in one year or less?

A customer is an officer of a company that is involved in some significant changes. All of the following items are examples of corporate affairs that could be considered inside information if the customer shares them with his registered representative except:

Call protection is most valuable to a bond owner when bond prices are generally:

A married couple who earned income that exceeded $300,000 in each of the prior two years and reasonably expects the same for the current year is:

When a broker-dealer charges a commission on a securities transaction, it has acted as:

Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the following investor?

All of the following risks apply to both foreign and domestic debt instruments except:

Which of the following Form U4 reportable events results in a statutory disqualification?

Which fo the following actions violates FINRA rules regarding selling away?

Company ABC annoys a 20% stock divided for its common shareholders. If a customer holds 1,000 shares at $50.00, what is the new price and number of shares following the payment of the stock dividend.?

Under SEC Regulation S-P (Consumer Privacy), which of the following information must a firm include in tis customer privacy and out-put notices.

Upon expiration, all in-the-money S&P 100 index call options are settled by the delivery of which of the following?

Which of the following represents the effect of a stock split?

Which of the following stakeholders has first claim priority in a Chapter 11 proceeding?

Under normal circumstances a customer's letter of intent on a mutual fund purchase is valid for what maximum period of time?

The owner of which of the following products is most exposed to inflationary risk>

When selling a fixed amount of a base currency to purchase a counter currency, which of the following factors is primarily used to determine how much of the counter currency the customer will receive?

Blue-sky laws are regulated by which of the following entities?

Which of the following security types provides investors with a stated maturity date, a floating interest rate, and an option to put the security back to a financial intermediary on a daily or weekly basis?

A customer has a cash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her an account statement?

The redemption value of an open-end investment company's shares is based on the :

Which of the following products is adversely impacted if the issuer's credit rating is downgraded?

A Transaction in which a writer covers a position by purchasing an option is called:

In which of the following situations is an employee of a public company permitted to trade upon information without violating insider trading laws?

A broker-dealer is permitted to accept payment for a new issue from a new customer when the:

Direct participation programs (DPPs) provide:

A registered representative (RR) who wants to place a mutual fund advertisement must obtain written approval from which of the following parties?

Which of the following outcomes are possible for the writer of a covered call option?

Which of the following statements is true about treasury stock

If a market maker posts a quote of 10.00 - 10.10 [25x10], which of the following actions is the market maker willing to take?

A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling at what price per share at expiration?

The call provision of a bond stipulates which of the following factors?

Which of the following statements is true regarding the concept of an annuity contract?

Under FINRA rules, which of the following activities by a registered representative requires written notification her firm?

A member of a stock exchange responsible for providing liquidity in a security by being willing to buy and sell at all time is known as:

Roth 401(k) and Roth individual retirement account( IRA) plans share which of the following features ?

The primary purpose of a syndicate desk in the context of an equity offering is to:

A registered representative (RR) wants to participate in a private securities transaction. Which of the following actions must the RR take?

An associated person who is not a registered representative is permitted to engage in which of the following activities?