SIE Practice Questions

A.  

In writing, at the time of redemption

B.  

On the trade confirmation

C.  

On the broker-dealer ' s website

D.  

On the customer ' s account statement

A.  

The calendar year following initial registration

B.  

On the anniversary date of initial registration

C.  

Every three years after the date of registration

D.  

Every five years

A.  

Annually

B.  

Semiannually

C.  

After the initial three-year requirement and then every two years

D.  

Upon the receipt of a customer complaint

A.  

At or prior to approval

B.  

Within 15 days after approval

C.  

Prior to settlement of the first options trade

D.  

With the first options confirmation

A.  

A rights offering

B.  

A private offering

C.  

An exempt offering

D.  

A secondary offering

A.  

Market risk

B.  

Liquidity risk

C.  

Prepayment risk

D.  

Diversification risk

A.  

The account is managed by a third-party custodian and is, therefore, subject to lower management fees than those charged by the insurance company.

B.  

The account is held at a broker-dealer that is separate from the insurance company, thereby allowing tax-deferred investments in all types of securities products.

C.  

The account is held separately from the insurance company ' s general account and, therefore, is protected from the claims of general creditors of the insurance company.

D.  

The account represents the indebtedness of the insurance company that is subordinated to the claims of general creditors and, therefore, offers investors a higher rate of return.

A.  

SIPC coverage is only for securities, and FDIC coverage is only for cash.

B.  

SIPC protects brokerage accounts, and FDIC protects bank deposits.

C.  

Money market mutual funds are covered by the FDIC and are not covered by SIP

C.  

D.  

Securities held at broker-dealers are covered by the FDIC and are not covered by SIP

C.  

A.  

A firm hires a registered representative (RR) with a 15-year-old felony conviction.

B.  

An RR ' s cousin purchases shares of an initial public offering (IPO).

C.  

An RR takes a second job as a bartender without notifying her firm.

D.  

An RR purchases a stock based on a published research report prepared by her firm.

A.  

operational income.

B.  

capital appreciation.

C.  

accelerated depreciation.

D.  

investment interest deduction.