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Securities Industry Essentials Exam (SIE)

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Total Questions : 408

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Question # 111

A customer wants to open an account to trade covered calls and puts. Which of the following communications must be provided to the customer prior to approving the account for trading?

Options:

A.  

Prospectus

B.  

MSRB Investor Brochure

C.  

Margin disclosure statement

D.  

Options disclosure document (ODD)

Discussion 0
Question # 112

Which of the following debt security classes has the highest claim priority ranking?

Options:

A.  

Secured debt

B.  

Subordinated debt

C.  

Senior unsecured debt

D.  

Second lien secured debt

Discussion 0
Question # 113

Which of the following transactions is most profitable if executed prior to a significant rise in a company ' s stock price?

Options:

A.  

Buying a put option

B.  

Buying a call option

C.  

Selling a put option

D.  

Selling a call option

Discussion 0
Question # 114

Which of the following entities settles broker-to-broker equity, listed corporate and municipal bond, and unit investment trust (UIT) transactions in the U.S. equities markets?

Options:

A.  

SEC

B.  

FINRA

C.  

Federal Reserve

D.  

National Securities Clearing Corporation (NSCC)

Discussion 0
Question # 115

A customer calls his registered representative (RR) with a request to hold all mail for the next six weeks. During the call, the RR checks his files and finds a letter from the customer for a similar request made the prior year. Despite a suggestion to convert to electronic statements via the firm website, the customer prefers paper statements. Holding this customer ' s mail is:

Options:

A.  

permissible if the customer provides written instructions.

B.  

permissible because the customer previously authorized holding mail.

C.  

not permissible because the request is for more than one month.

D.  

not permissible because the customer opted out of electronic statement delivery.

Discussion 0
Question # 116

A customer owns 100 shares of ABC with a current market value of $5.00 per share. The company undergoes a 1-for-2 reverse split of the stock. Which of the following statements is true of the customer ' s holdings and the price of the stock?

Options:

A.  

The customer will have 50 shares at $10.00 per share.

B.  

The customer will have 100 shares at $5.00 per share.

C.  

The customer will have 200 shares at $2.50 per share.

D.  

The customer will have 1,000 shares at $0.50 per share.

Discussion 0
Question # 117

Which of the following products is redeemable at net asset value (NAV)?

Options:

A.  

Corporate stock

B.  

Municipal bonds

C.  

Options contracts

D.  

Open-end mutual funds

Discussion 0
Question # 118

A customer purchases 100 shares of stock on Thursday, August 2. This transaction must settle regular way no later than:

Options:

A.  

Friday, August 3

B.  

Monday, August 6

C.  

Tuesday, August 7

D.  

Wednesday, August 8

Discussion 0
Question # 119

The SEC is Investigating an individual who Is potentially trading with material nonpublic Information concerning their former employer. Which of the following statements describes the authority, if any, that the SEC has?

Options:

A.  

The SEC has the authority to file civil charges only.

B.  

The SEC has the authority to file criminal charges only.

C.  

The SEC has the authority to file civil and criminal charges.

D.  

The SEC does not have the authority to file charges, only to issue fines and restitution.

Discussion 0
Question # 120

Corporation ABC has excess cash and would like to signal to the public that management believes its stock is undervalued and that it has a positive outlook for the company. Which of the following corporate actions would be the most appropriate for ABC to take?

Options:

A.  

A stock split

B.  

A rights offering

C.  

A stock buyback

D.  

An exchange offer

Discussion 0
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