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Securities Industry Essentials Exam (SIE)

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Total Questions : 408

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Question # 81

Which of the following responses describes a covered call?

Options:

A.  

Short stock and long calls

B.  

Long stock and short calls

C.  

Long calls and long puts

D.  

Long two calls and short one call

Discussion 0
Question # 82

Executing trades using the delivery versus payment (DVP) settlement process requires the buyer to make a cash payment by which of the following deadlines?

Options:

A.  

On the 5th business day after execution

B.  

Before or at the same time as securities being delivered

C.  

No later than 3 days after the securities are delivered

D.  

By the agreed-upon settlement date with the issuer

Discussion 0
Question # 83

Which of the following statements is true of a tax-free municipal revenue bond?

Options:

A.  

The bond proceeds are treated as general revenue to the issuer.

B.  

The bondholders are entitled to be paid from any revenue received by the issuer.

C.  

The bondholders are entitled to be paid only from a specified source of revenue received by the issuer.

D.  

The bondholders are entitled to a specified percentage of the revenue received by the issuer each year.

Discussion 0
Question # 84

A customer purchased 100 shares of Company XYZ stock for $10 per share. The stock paid an annual cash dividend of $1 per share. The customer sells his 100 shares three years later for $15 per share. Which of the following amounts is the total pretax return on his investment?

Options:

A.  

$300

B.  

$500

C.  

$800

D.  

$1,800

Discussion 0
Question # 85

Under which of the following circumstances, if any, is it permissible for an individual without a Power of Attorney (POA) to sign a customer ' s name on their behalf?

Options:

A.  

Upon approval by a firm principal

B.  

Upon receipt of verbal authorization provided that written authorization is subsequently provided

C.  

When accounts are fully discretionary

D.  

Never permissible to sign a customer ' s name on their behalf

Discussion 0
Question # 86

Which of the following disclosures is a municipal securities dealer required to provide its customers once every calendar year?

Options:

A.  

The firm ' s address

B.  

The firm ' s financial standing

C.  

FINRA violations of all registered representatives

D.  

The location and availability of the MSRB investor brochure

Discussion 0
Question # 87

An introducing broker-dealer generally performs which of the following activities?

Options:

A.  

Clears transactions with the DTCC

B.  

Maintains custody of customer funds

C.  

Accepts orders to purchase securities

D.  

Prepares customer account statements

Discussion 0
Question # 88

An investor generally purchases an open-end mutual fund from which of the following parties?

Options:

A.  

The NYSE

B.  

The fund ' s custodian

C.  

The fund ' s underwriter

D.  

An existing shareholder

Discussion 0
Question # 89

Which of the following responses is the annual contribution limit for Coverdell education savings accounts?

Options:

A.  

$2,000

B.  

$6,500

C.  

$75,000

D.  

The national annual average for qualified higher education expenses in a public college or university

Discussion 0
Question # 90

Which of the following government securities is issued with a 90-day maturity?

Options:

A.  

Treasury bill

B.  

Treasury note

C.  

Treasury bond

D.  

Series EE bond

Discussion 0
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