SIE Practice Questions Answers SIE (Securities Industry Essentials)

A currency transaction report (CTR) is a report that U.S. financial institutions are required to file with which of the following?

Investment advisers that have custody of client assets or require prepayment of advisory fees __________ or more in advance, and in excess of __________ for each client, must file an audited balance sheet with the SEC as of the end of the investment adviser’s fiscal year.

All but which of the following are among the three categories of firm communications that are defined and regulated by FINRA Rule 2210?

Which of the following refers to the right to demand the repayment of monies paid if there has been a bad delivery of a stock or security?

Which of the following is an advertisement used by a registered investment company that advises readers to obtain a full prospectus? It is not permitted to include an application to invest, and it must contain specific caveats pursuant to SEC Rule 482.

if an investor owns 1,000 shares and three positions on the board of directors are open, the investor has a total of 3,000 votes (1,000 shares × 3 candidates), which the investor can use to vote for any candidate(s) in any way she sees fit.

Cumulative voting doesn’t give an investor more voting power, just more voting flexibility. The only way to get more voting power is to buy more shares.

Under cumulative voting rules, an owner of 1,000 shares of DEF common stock who is voting for 4 members on the board of directors could cast:

DEF Corp. has 20,000,000 shares of authorized stock. DEF has issued 15,000,000 shares and has since repurchased 1,500,000 shares. How many shares are outstanding?

Bob Billingham owns 1,200 shares of DEF common stock at a current market price of $90 per share. If DEF splits its stock 3-for-1, what would Bob’s position be after the split?

Betty Billings owns 3,600 shares of GHI common stock at a current market price of $2 per share. If GHI reverse splits its stock 1-for-5, what would Betty’s position be after the split?

ABC stock is trading for $49.50 on the day prior to the ex-dividend date. If ABC previously announced a $0.75 dividend, what will be the next day’s opening price?

Terry Trader owns 400 shares of OXX common stock at $33 per share. OXX previously declared a 10 percent stock dividend. Assuming no change in the market price of OXX prior to the dividend, what is Terry’s position after the dividend?

An ABC investor owns 8 percent cumulative preferred stock ($100 par). In the first year, ABC paid $6 in dividends. In the second year, it paid $4 in dividends. If a common dividend is declared the following year, how much must the preferred shareholders receive?

Which of the following is a note issued in which the government borrows money to finance a project and then repays lenders with revenue generated by the same project?

Which of the following is a type of public offering auction in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold?

In addition to the federal securities laws, each state has its own set of securities laws, commonly referred to as __________, which are designed to protect investors against fraudulent sales practices and activities.

Which of the following passes capital gains, dividends, and interest earned on fund investments directly to shareholders so that it is taxed only at the personal level, and double taxation is avoided?

In any single life private annuity transaction, if the seller outlives his or her actuarial life expectancy, the purchaser will have paid __________ for the property. If the seller does not outlive his or her actuarial life expectancy, the __________ will have made a good financial deal.

How is the net asset value (NAV) of a mutual fund calculated?

The statement of cash flows is separated into all but which of the following categories?

Common stock is referred to as __________ because the owner of the stock is also an owner of the corporation and may participate in its capital and income growth

Which of the following is considered a hybrid security?

Which of the following occurs when the supply of goods and services exceeds their demand?

An IRA must be created and funded by __________ of the calendar year following the year in which the contribution applies.

Common stockholders have the right to vote for which of the following?

I. Stock splits
II. Stock dividends
III. Board of directors

DIMM Corporation has just declared bankruptcy. Remaining assets would be distributed in which way (from first to last)?