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Securities Industry Essentials Exam (SIE)

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Total Questions : 410

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Question # 11

Which of the following actions typically changes the cost basis of a mutual fund position that a customer holds?

Options:

A.  

Transferring the mutual fund position via ACATS to another firm

B.  

Upward movement in the net asset value (NAV) of the mutual fund

C.  

The appointment of a new portfolio manager to oversee the mutual fund

D.  

Reinvested dividends received from the mutual fund to purchase more shares

Discussion 0
Question # 12

If an investor is bullish on ABC, which of the following actions will he most likely take?

Options:

A.  

Sell ABC puts

B.  

Sell ABC calls

C.  

Sell ABC stock

D.  

Sell ABC stock short

Discussion 0
Question # 13

When is it permissible to exercise European-style options contracts?

Options:

A.  

Only on the last business day before expiration

B.  

Only on the day of expiration

C.  

Only on the day after expiration

D.  

Only on the third Friday of every month

Discussion 0
Question # 14

Which of the following corporate actions is voluntary for the investor?

Options:

A.  

A stock split

B.  

A full merger

C.  

A tender offer

D.  

A pre-refunding

Discussion 0
Question # 15

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 # 16

Which of the following statements is true regarding 529 savings plans?

Options:

A.  

529 contributions are tax deductible in all states.

B.  

There are income limitations for contributing to a 529 savings plan.

C.  

The account beneficiary has control over the assets in a 529 savings plan.

D.  

Assets are transferable to another 529 savings plan tax-free if the new beneficiary is a family member of the current beneficiary.

Discussion 0
Question # 17

Which of the following investments provides foreign investment exposure?

Options:

A.  

Treasury bills

B.  

Municipal bonds

C.  

SPDR S & P 500 ETF (SPY)

D.  

American Depositary Receipts (ADRs)

Discussion 0
Question # 18

A summary prospectus for a mutual fund must contain which of the following information?

Options:

A.  

Projected return

B.  

Investment objectives

C.  

Fund ' s portfolio holdings

D.  

Control persons and principal owners of the fund

Discussion 0
Question # 19

The prohibited practice of excessively trading in a discretionary account in order to generate commissions is known as:

Options:

A.  

kiting.

B.  

churning.

C.  

freeriding.

D.  

front running.

Discussion 0
Question # 20

In performing fundamental analysis of an equity, which of the following elements should an investor consider?

Options:

A.  

Chart patterns

B.  

Moving average

C.  

Financial statements

D.  

Resistance and support levels

Discussion 0
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