SIE

Question 1

What are the potential maturities of a Treasury bill?

Answer 1

4, 13, 26, and 52 weeks.

Question 2

What are the potential criteria for an accredited investor?

Answer 2

Income, net worth, or professional designation.

Question 3

Is a short sale bearish or bullish?

Answer 3

Bearish

Question 4

How are t-bonds and t-notes priced?

Answer 4

As a percentage of par

Question 5

What type of underwriting calls for underwriters to buy securities from the issuer acting as an agent, not as principal?

Answer 5

Best efforts underwriting.

Question 6

How can you transfer registration as an RR from one broker-dealer to another?

Answer 6

You can’t/

Question 7

What part of short and long calls are always the same?

Answer 7

The breakeven.

Question 8

What is parity?

Answer 8

When the premium equals the intrinsic value.

Question 9

What is the maximum gain on a short put?

Answer 9

The premium

Question 10

What does CY measure?

Answer 10

A bond’s annual coupon payment relative to its market price.

Question 11

Who decides which securities to sell if a maintenance call in a margin account is not met?

Answer 11

The broker-dealer.

Question 12

What type of risk are long-term bonds most associated with?

Answer 12

Inflation risk.

Question 13

Who benefits most from a defined contribution plan?

Answer 13

Younger people

Question 14

What is the limit of 12b-1 fees of a no load fund?

Answer 14

.25 percent.

Question 15

Which investment companies do NOT redeem their shares?

Answer 15

Closed-end funds.

Question 16

Who has volume limitations under ruler 144?

Answer 16

Control persons

Question 17

What is street name?

Answer 17

Securities held in street name are registered in the name of the broker-dealer

Question 18

How long is the cooling-off period?

Answer 18

20 calendar days after the SEC has received it.

Question 19

What is the difference between money market and capital market?

Answer 19

The money market is the trade in short term dept.

The capital market is the trade of stocks and bonds, i.e. mid- to long-term investments.

Question 20

Who issues commercial paper?

Answer 20

Corporations.

Question 21

When can a municipality issue GO bonds that will put it over its statutory debt limit?

Answer 21

When voters approve of it.

Question 22

What is a municipal finance professional?

Answer 22

An employee of a FINRA member engaged in municipal security representative activities such as underwriting and trading

Question 23

What is the breakeven for a short call?

Answer 23

The premium plus the strike price.

Question 24

What is the breakeven for a long call?

Answer 24

Premium plus strike price.

Question 25

How long of a residency history does the u-4 require?

Answer 25

5 years

Question 26

Preferred stock dividend is stated as a percentage of

Answer 26

Par value

Question 27

What securities are exempt from Reg T margin requirements but can still be purchased on margin?

Answer 27

Treasury securities.

Question 28

What is a syndicate?

Answer 28

`Two or more broker-dealers which work with an issuer through, for example, the registration process in the case of corporate securities and bring the issuer's securities to the market by selling them to investors.

Question 29

What is an example of a municipal bond that is not tax free?

Answer 29

IDR

Question 30

What is the formula for tax-free municipal equivalency?

Answer 30

corporate x (100-tax bracket) = tax-free municipal equivalent.

Question 31

What is notable about the quote for a T-bill?

Answer 31

The Bid will be HIGHER than the ask.

Question 32

How are zeros taxed?

Answer 32

As PHANTOM INCOME every year.

Question 33

At what level are treasuries taxed?

Answer 33

Federally, but not on a state or local level.

Question 34

At what level are municipal bonds taxed?

Answer 34

Locally/on a state level, not federally (normally, except sometimes)

Question 35

What is the FCA?

Answer 35

Farm Credit Association, makes sure that securities and loans are available for ranchers and farmers. Tax exempt at a state and local level.

Question 36

How often to GNMA payments take place?

Answer 36

monthly

Question 37

At what level are territorial bonds taxable?

Answer 37

Every level!

Question 38

At what level are FCA certs taxable?

Answer 38

Federal only