Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

SIE EXAM > SIE > Flashcards

SIE Flashcards

1
Q

NCI

A

Non-conventional Investment that require approval as they come from bankrupt companies and no interest will be paid until company is profitable, usually income bonds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Suspicious activity reports sent to FINRA by brokerage firms must be held for how long?

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a Series EE bond?

A

US savings bond that is NON-NEGOTIABLE since it isn’t publicly traded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

ETN

A

(exchange traded notes) debt securities issued by a banks where the amount received at maturity usually depends on the performance of a Stock Index. Got no coupon rates
Extra: not suitable for an income objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

BABs (Build America Bonds)

A

BABs have interest that are federally taxed because the bonds are issued by Congress not Municipal securities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Eurodollars

A

US dollars in foreign banks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Max % of affiliated persons on an investments company board of directors

A

60%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Trust Indenture Act of 1939

A

New issues of corporate bonds that are publicy available must be registered with the SEC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Debentures

A

Bonds backed by the full faith and credit of the company
Also known as Unsecured since theirs no real backing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Moody’s investment grade rating system?
Highest to lowest

A

Aaa -> Aa -> A -> Baa

These are speculative ratings Ba -> B -> Caa -> Ca -> C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When must a confirmation of a customers trade be delivered to FINRA Firm?

A

Completion of transaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Moral Obligation Bonds

A

Revenue bonds that need legislative approval of a municipality to be issued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Stocks issued through Regulation S exemption are prohibited from trading in US markets for how long?

A

1 Year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

UIT ( Unit Investment Trusts)

A

Investment companies that have fixed portfolios that do not have board of directors or managers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The highest operating expense (annual fee) for a mutual fund

A

Investment advisory fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How often must brokerage firms inspect their branch offices according to FINRA rules

A

Every 3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Brokers broker transact business with all except

A

Institutions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Tax penalty for excess IRA contribution?

A

6%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Which of the following affect the holding period of stock

A

Long calls short calls Long puts ✅SHORT PUTS✅

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Covenants

A

Promises on an indenture made by an issuer of a revenue bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Stabilization Bids

A

Bids offered to the public AT or BELOW Public Offering Price to prevent drop in new security price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Competitive offerings

A

The issuer determines the total par value of bonds maturities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Tax with unified tax credits

A

First amount of money is not taxed

EX: Estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Currency transactions reports must be filed for money orders or cash exceeding

A

$10000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

ADRs

A

Receipt for a Foreign security exchanged in US markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

How often must brokerage firms send balance sheets to customers if they maintain custody of their assets

A

Semi-Annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What signature is required when a customer wants to open a new account in a brokerage firm?

A

A Principals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

A bond trades flat?

A

A bond does not have accrued interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Takedown

A

The largest portion of underwriting spread

Money earned by the syndicate for each new security sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

RTRS

A

Real Time Reporting System

Reports trades of municipal bonds to public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Indenture

A

The legal agreement between issuer and trustee of bondholders.
listed on the face of the bond.(maturity, par value)
Only interest rate on it is the nominal yield(coupon rate)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Sinking funds

A

Bank (escrow) accounts used to save money to pay off bonds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Bearer Bond

A

Bond with coupons attached, no identification of the owner of the bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

The basis of a bond

A

Yield to maturity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Serial bonds are quoted based on

A

YTM (Yield to Maturity)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

When is a bond callable?

A

When the zr or s has 2 dates after them

EX: XYZ 8.5s31-37

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Dilution

A

When the % ownership of each stockholder decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

TIPS

A

Treasury Inflation Protected Securities that have fixed coupon rates and variable par values; based on inflation adjustment by GOV

39
Q

Common stockholders can’t vote for what?

A

Dividends

40
Q

Safest security for a company to capitalize?

A

Common Stock

41
Q

SEC Rule 147

A

Intrastate (single state) offerings are exempt from SEC registration. (securities) must be held in place of issuance for 6 months

42
Q

SEC Rule 145

A

SEC regulates all new business made by mergers, spin offs, and acquisitions

43
Q

Greensboro Clause

A

Overallment of new securities can be 15% if written on prospectus

44
Q

Form 144 filings are valid for

A

90 days

45
Q

Western Account

A

Account with divided liability and responsibility. Underwriters are not required to help other underwriters

46
Q

Underwriting Agreement

A

Signed by the issuer and managing underwriter. Determines if it is a firm commitment or best efforts agreement

47
Q

minimum % of revenue a company must generate from state of the offering to be eligible for Rule 147 exemption

A

80%

48
Q

The redemption price of an open-ended fund?

A

NAV

49
Q

Max % of NAV a no-load fund may charge annually in 12b-1 fees

A

0.25%

50
Q

minimum % assets must be invested according to objs

A

80%

51
Q

Interest received on municipal securities is

A

Federally tax free

52
Q

If POP and NAV move in opposite directions…

A

its a close-ended fund

53
Q

life cycle fund

A

determines what investments to purchase for retirement based on time horizon in the prospectus. aggressive in beginning conservative in the end.

54
Q

Distributor

A

sponsor or managing underwriter of a mutual fund, usually pays for promotional expenses of mutual fund.

55
Q

Redemption of mutual funds must be completed in

A

7 calendar days

56
Q

How often is the death benefit of a variable life insurance policy calculated

A

annually

57
Q

Conduit Theory

A

Means for an investment company to avoid taxes on net investment income distributed to shareholders. mutual fund acts as a conduit for distribution and is only taxed on income the fund retains.

58
Q

Functions of a custodian bank of an investment company

A

Maintain stock and bond certificates

custody of cash not invested

59
Q

Money Market Funds

A

short-term Funds (usually 1 year or less) which have low price volatility (CDs T-bills)
Provides check writing features

60
Q

Variable life insurance policy

A

variable death benefit based on the performance of the separate account.

61
Q

Universal life policy

A

allows flexibility in the timing and amount of premium payments.

62
Q

Maximum length of an advisory contract for a manager of an investment company

A

2 years
1 year renewals after

63
Q

What is the POP of a mutual fund

A

NAV + sales charge (if sales charge is given in $)

64
Q

Blind Pool or Blank Check

A

hedge fund without an objective

65
Q

What is a Breakpoint

A

The schedule of sales charge discounts mutual funds offer due to lump sum or cumulative investments

66
Q

Sector Fund

A

buys common stocks in a specific industry

67
Q

What is the Separate Account

A

Portfolio of a variable annuity chosen by the investor that determines the payouts received from a variable annuity

68
Q

What are IDCs

A

Intangible Drilling Costs, required to be spent before drilling begins.

69
Q

Loan Consent Agreement

A

allows a brokerage firm to lend a customers securities to a short seller, only margin agreement not needing to be signed by customer

70
Q

minimum amount of equity for a day trading account

A

$25000

71
Q

MIN maintenance requirement for a SHORT account

A

30% (any leverage increases this amount)

72
Q

Pattern day trader

A

an investor who executes 4 day trades every 5 business days

73
Q

MIN maintenance requirement for a LONG account

A

25% ( same leverage bullshiiii )

74
Q

Credit agreement

A

investor is agreeing to interest charged on debit balance

75
Q

SEC

A

Securities and Exchange Commission, regulates all exchanges and trading markets. anybody who anybody gotta register.

76
Q

SRO

A

Self Regulatory Organizations, enforcing federal securities laws and supervises practices.

77
Q

FINRA

A

Financial Industry Regulatory Authority, regulates all investment banking, over the counter markets, NYSE-listed, etc.

78
Q

SIPC

A

Securities Investor Protection Corporation, non-profit that members pay into a general fund to protect customers in case of broker-dealer bankruptcy

79
Q

Special Assessment bonds

A

muni bond issued to fund repairs within a portion of the municipality.

80
Q

hypothecation

A

Securities bought on margin are used as collateral for the margin loan.

81
Q

promotion sent to how many customers is considered correspondence

A

25 or less, doesn’t need approval

82
Q

how long is a customers account frozen for non sufficient funds

A

90 days

83
Q

Contemporaneous trader

A

accusing insiders of insider trading can only accuse if selling while insider buys or vice versa.

84
Q

T-bills maturity dates?

A

4,13,26,52 weeks

85
Q

The Securities Act of 1933

A

law requires issuers to comply with a series of rules, including disclosing all material company information, in order to protect investors from fraud

86
Q

What is shorting

A

Selling a stock that you dont own (borrow)

87
Q

Form U-4

A

intro filing for registering reps, sent to CRD,needs:
name address, alias
5 year residnecy history
10 year employment history
any misdemeanors or felonies

88
Q

Form U-5

A

used for Reps that are terminated or leaving, sent to the CRD
if quitting send in 30 days
if switching, send in 60 days of U-4 filing

89
Q

max allowed contribution for a 55 year old to a Roth IRA

A

$7000 or 100% earned income, whichever is less

90
Q

Money Purchase Plan

A

retirement plan that a Company will make a defined contribution for each employee regardless of profit or loss

91
Q

Warrants

A

Certificate that gives the holder the right to buy common shares directly from a corporation at a fixed exercise price until the warrant expires, typically several years in the future.

92
Q

if youre bullish an option you are

A

Holder, long, or Buying

93
Q

If youre Bearish you are

A

Seller, Short, Writer

SIE EXAM (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions