SIE exam Review

Question 1

How long for the prospectus to be delivered for non listed and listed securities?

Answer 1

40 for non listed; 25 for listed

Question 2

A prospectus must be delivered following the transactions of ____ but not ETFs

Answer 2

Unit investment trust, common stock and mutual funds

Question 3

What are the tax laws on municipal bonds?

Answer 3

Tax free at federal level and only tax free at state level if bought from state that person resides in

Question 4

when are puts at parity

Answer 4

when intrinsic value equals premium

Question 5

a bond purchased at premium has what kind of current yield

Answer 5

current yield is below the coupon rate

Question 6

a spin off

Answer 6

is when one company sells all of the shares of another it owns

Question 7

what is the penalty if failing to meet RMDs

Answer 7

25% on shortfall

Question 8

treasury receipts are backed by whom?

Answer 8

the issuing broker dealer

Question 9

what is a municipal finance professional?

Answer 9

employee of a financial industry regulatory authority member engaged in municipal security representative activities such as underwriting and trading

Question 10

what is the minimum maintenance for a short account and margin account?

Answer 10

30% short; 25% margin

Question 11

what is a firm commitment?

Answer 11

the underwriters contract with the issuer to buy the underlying secures thus are acting as principles.

Question 12

what’s the retention period for monthly financial reports

Answer 12

3 years

Question 13

a person is not considered an MFP if?

Answer 13

their activity is solely sales.

Question 14

what are the prospectus delivery rules for IPO listed securities and non listed?

Answer 14

25 days for listed; 90 for non listed

Question 15

what are the prospectus delivery rules for APO listed and non listed?

Answer 15

0 for listed; 40 for non listed

Question 16

what is intrinsic value

Answer 16

is the amount a contract is in the money

Question 17

what act created the SEC

Answer 17

the securities and exchange act of 1934

Question 18

all accounts must be approved by whom following the first trade?

Answer 18

principle

Question 19

the buyer of a put has…?

Answer 19

the right to sell the stock

Question 20

how should an account be registered if managed by the insurance companies own investment advisor or by a third party?

Answer 20

Open end company for own advisor; unit investment trust for third party.

Question 21

after the sale of a registered security, what happens?

Answer 21

the security is still considered register but no longer has a holding period.

Question 22

how are GNMA certificates taxed?

Answer 22

at the federal and state level.

Question 23

does SIPC cover futures?

Answer 23

no

Question 24

who issues municipal security?

Answer 24

states and local governments.

Question 25

what is the regulation enacted to protect the privacy of customer information?

Answer 25

Regulation S-P

Question 26

when does a buyer need to be in the books of an issuer to receive a dividend?

Answer 26

by record date

Question 27

when can ABLE accounts be opened?

Answer 27

at any age

Question 28

how long must records be retained for

Answer 28

6 years and readily available for 2

Question 29

training in over the counter markets happens between?

Answer 29

market makers

Question 30

a broker sources funds from who?

Answer 30

the dealer.

Question 31

what does rule 144 regulate?

Answer 31

the sale of control and restricted securities in the secondary market.

Question 32

what does not settle for t+2 and what does it settler for?

Answer 32

treasuries and money market securities (T+1).

Question 33

when must the options disclosure document be provided?

Answer 33

before the time of account approval.

Question 34

what is a secondary offering?

Answer 34

one or more stockholders in the cooperation sell all or some if their shares to the public.

Question 35

a carrying firm has the capability to..?

Answer 35

carry out trade executions, clear and settle transactions and take custody of customer funds and securities.

Question 36

what are the three broad types of investment companies?

Answer 36

face amount certificates, unit investment trusts, and management investment companies.

Question 37

what does the over the counter market trade?

Answer 37

unlisted stocks, most bonds, treasury debt, municipal bonds.

Question 38

Tell me about the fourth market

Answer 38

for institutional investors, trade in transactions unassisted by broker dealers, placed through ECNs

Question 39

is the grantor subject to any tax in a revocable living trust?

Answer 39

yes

Question 40

what is a collateral trust bond

Answer 40

issued by cooperations that own securities of other companies as investments.

Question 41

what is the code of arbitration

Answer 41

governs the resolution of disagreements and claims between members, registered representatives and the public.

Question 42

any cash transaction over 10,000 must be reported to whom?

Answer 42

To FinCEN using the Currency transaction report (CTR)