SIE Practice Exam 4

Among the most significant differences between an open-end investment management company and a unit investment trust is that:

Single stock, or single sector, risk is more generally in the category described as:

Diversification is a very effective way for an investor to mitigate:

Many folks living across the country choose to participate in their state’s 529 college savings plan. These investment programs are generally referred to by FINRA as:

As interest rates rise, which of the below will change the least in price?

Your client wishes to make a substantial investment in a mutual fund your firm is offering. In order to qualify for a reduced sales load, they sign a letter of intent which gives them:

Choose from among the below ratings the one which is the higher credit rating in the speculative category as defined by Standard & Poors rating service would be:

The security instrument most often associated with enabling a US investor to facilitate trading in foreign stock is:

The writer of an option contract is said to have:

Absent exceptional circumstances, NASDAQ trades during business hours are reported within:

An NYSE listed corporation has outstanding preferred stock with a cumulative provision and a $5.00 annual dividend. If the earnings over the past two years have led to the Board of Directors declaring a $3.00 preferred dividend two years ago and a $2.00 dividend last year, in order that a common dividend may be paid for the current year:

When an investor writes a covered call, the client’s profit and loss potential on that position becomes:

When the term ‘shelf registration’ is used, it typically refers to:

When institutional investment managers open brokerage accounts at several clearing broker-dealers, those clearing broker-dealers process the transactions and have the back-office clearing and processing handled through a single broker-dealer. This firm is identified in the SEC and FINRA regulations as a:

When a Board declares a cash dividend, the order of dates beginning with that announcement date is:

I.    Declaration date

II.   Payment date

III.  Record date

IV.  Ex-dividend date

A market maker is quoting a stock at 23.15 – 23.30. If the firm fails to honor its quote for at least one round lot on both sides of the market,

When investors put their capital at risk, they rely upon the input and advice of their financial advisors, persons associated with a broker-dealer who have been trained in the field of investments and investment risks. As a concept, hedging has its primary purpose:

NASDAQ market makers wishing to increase the ADTV (average daily trading volume) they handle in those stocks:

A client of yours purchased 1000 shares of RAL common stock on Monday, February 11th in a cash account at a CMV of $115 per share. The next day the stock moves to $128 on a very favorable news report and the client places an order to sell the 1000 shares at the market. On the Reg. T payment date the client has not paid for the purchase and asks that liquidation proceeds be used to cover the cost of the purchase.

A short call is:

Allowable ways to qualify for a breakpoint when purchasing front-end load mutual funds include:

I.    Exchange or conversion privilege with a fund family

II.   Reinvesting dividends and/or capital gains distributions under an LOI.

III.  13 month LOI

IV.  ROA — rights of accumulation

Each of the below business enterprises exhibit flow-through of tax and related consequences except:

Depreciation write-offs represent which of the following?

Every FINRA member firm must have in place a Business Continuity Plan which addresses:

A candidate who fails the SIE exam three times and has waited the six-month moratorium period is preparing to take the exam for the fourth time. Which of the following is true?