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SIE Exam > SIE Finals Flashcards > Flashcards

SIE Finals Flashcards

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SIE Exam flashcards
1
Q

What should an investor enter if they want to receive immediate execution?

A

A Market Order

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2
Q

What is a customer who exceeds SIPC limits?

A

General Creditor

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3
Q

Do growth dividends have high or low payout ratios?

A

Low

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4
Q

What is the dollar amount of this T bond? 92.29

A
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5
Q

short-term municipal financing issued in anticipation of receiving a grant from the federal government or one of its agencies.

A

Grant anticipation notes

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6
Q

What is a time draft and facilitates foreign trades?

A

Bankers Acceptance

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7
Q

What is quoted on a discount yield basis?

A

Treasury bills

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8
Q

income payments, and hence value, are derived from and collateralized by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually.

A

Asset backed securities

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9
Q

the interest on a bond or loan that has accumulated since the principal investment, or since the previous coupon payment if there has been one already.

A

Accrued interest

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10
Q

A charge against a property that receives benefit from improvement.

A

Special assessment bond

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11
Q

What has seniority in a liquidation process?

A

Mortgage bonds

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12
Q

Minimum denomination for CDs are?

A

$100,000

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13
Q

municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools.

A

Industrial Development Bonds

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14
Q

timing of payment of dividends on stocks of corporations, income trusts, and other financial holdings, both publicly and privately held.

A

Ex-date

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15
Q

the fraction of net income a firm pays to its stockholders in dividends

A

Dividend payment

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16
Q

a daily finance newspaper that covers the municipal bond market and tracks 40 highly-rated, long-term municipal bonds.

A

Bond buyers index

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17
Q

Price you paid on your shares. Helps determine gain or loss.

A

Cost basis

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18
Q

What is found by dividing the annual dividend by the current market price?

A

Stock yield

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19
Q

the sale of a mutual fund at a set dollar amount that allows the fundholder to move into a lower sales charge bracket.

A

Breakpoint sale

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20
Q

an investment product offering a fixed portfolio of securities having a definite life.

A

Unit investment trust

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21
Q

When should a payment be sent if a client redeems mutual fund shares?

A

7 days

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22
Q

What fund invests in stocks in a specific geographic area?

A

Specialty fund

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23
Q

primarily a form of ownership in a corporation, representing a claim on part of the company’s assets and earnings.

A

Common stock

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24
Q

Responsible for safeguarding securities owned by a mutual fund.

A

Custodian bank

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25
Q

fund that invests solely in businesses that operate in a particular industry or sector of the economy and is least likely to provide income.

A

Sector fund

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26
Q

Ability to receive cumulative quantity discounts

A

Rights of accumulation

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27
Q

Does a clients number of annuity units ever change?

A

No

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28
Q

an insurer deposits premiums from policies it underwrites and from which it funds day-to-day operations of the business.

A

General account

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29
Q

Designed to deliver multiples of the performance of an index or other benchmark.

A

ETFs

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30
Q

Debt instruments linked to the performance of the commodity, currency, or index.

A

ETNs

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31
Q

REITs must have 200 shareholdes. T or F

A

False, they must have 100.

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32
Q

What is the typical maturity for ETNs

A

10-30 years.

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33
Q

What do accredited investors purchase the most?

A

Hedge funds.

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34
Q

a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment performance and insulate returns from market risk.

A

Hedge Fund

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35
Q

a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the bid–ask spread, or turn.

A

Market Maker

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36
Q

How much is the max amount for political donations?

A

$250

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37
Q

the inappropriate practice of an investment professional who sells, or solicits the sale of, securities not held or offered by the brokerage firm with which he is associated.

A

Selling away

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38
Q

They sell securities to individuals, advise companies in search of investors, and conduct trades and charge a commission.

A

Agent

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39
Q

a mutual fund in which shares are sold without a commission or sales charge.

A

No load fund

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40
Q

Used to keep the price of a newly issued stock from falling.

A

Stabilization

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41
Q

When do equity options settle when they are exercised?

A

2nd business day

42
Q

An upfront sales charge investors pay when they buy fund shares.

A

Front end load

43
Q

If a bond is trading at a discount, the YTM and YTC are higher than the nominal yield. T or F?

A

True

44
Q

The coupon rate of a fixed income security is the interest rate that the issuer agrees to pay to the security holder each year, expressed as a percentage of the security’s principal amount or par value.

A

Nominal Yield

45
Q

Risk to the entire market, not just one particular stock or industry.

A

Systematic or Market Risk

46
Q

Each option contract is based on how many shares of common stock/

A

100

47
Q

Are disclosures required if the execution occurred in the primary or secondary market?

A

Primary

48
Q

What is less liquid? Blue chip stocks or Penny stocks?

A

Penny stocks

49
Q

What is the minimum deposit requirement for a new short sale in a new margin account?

A

$2,000

50
Q

When buying EFTs, you pay…?

A

Market price plus commission

51
Q

Cash flow received from a dividend/interest, plus the appreciation or the depreciation in the value of an investment.

A

Total Return

52
Q

The rate that banks charge their most creditworthy customers, typically corporations. it is a lagging indicator, not leading.

A

Prime Rate

53
Q

Execution of an order ahead of a customer order to gain profit or limit loss

A

Frontrunning

54
Q

Max gift to 529 plans is?

A

$17,000 per person per year.

55
Q

A person cannot front load a 529 plan for 5 years without consequences. T or F?

A

False, they can

56
Q

If a RR is fired or quits, when and where should the firm notify FINRA?

A

Form U5 in 30 days.

57
Q

Excess trading in a customers account

A

Churning

58
Q

Diversifiable risk is called?

A

Regulatory Risk

59
Q

The market is assigned a beta coefficient of ??

A

1.0

60
Q

can measure the volatility of an individual stock compared to the systematic risk of the entire market.

A

Beta Coefficient

61
Q

a type of public offering where certain issuers are allowed to offer and sell securities to the public without a separate prospectus for each act of offering and without the issue of further prospectus.

A

Shelf Registration

62
Q

Broker dealers must maintain records of wire transfers of how much?

A

$3,000

63
Q

ERISA

A

Employee Retirement Income Security Act

64
Q

Making adjustments to the investments in a portfolio based on changes that are made to a market index or average.

A

Indexing

65
Q

A call option sold against a position

A

Covered Call

66
Q

Issued to obtain indications of interest on a prospectus new issue of securities

A

Red Herring

67
Q

Funds have to send payments of redeemed mutual fund shares in??

A

7 days

68
Q

How much is each index point?

A

$100

69
Q

How long must a BD keep records if an account is closed?

A

6 years

70
Q

Above market price, sell at limit or higher

A

Sell limit order

71
Q

Below market price, market price falls or below stop price.

A

Sell stop order

72
Q

ADRs must be registered under what?

A

Securities Act of 1933

73
Q

A variable annuity is an accounting measure used to determine the contract owners interest in the separate account.

A

Accumulation Unit

74
Q

Individuals are referred to as?

A

Separate customers

75
Q

How long must customer complaints be kept?

A

4 years

76
Q

A type of fund that invests primarily in a particular industry or geographical area is a ?

A

Specialized fund

77
Q

states that asset prices reflect all available information. A direct implication is that it is impossible to “beat the market” consistently on a risk-adjusted basis since market prices should only react to new information.

A

Efficient Market Hypothesis

78
Q

If a stock index call option is exercised, the writer must deliver cash. True or False?

A

True

79
Q

Money received by a corporation when it sells its stock above its par value.

A

Paid- in Capital

80
Q

Insider trading penalty

A

$5,000,000 fine and/or 20 years in prison

81
Q

Type of analysis that uses a specific company’s financial information and the direction being taken by the company’s management is?

A

Fundamental

82
Q

guarantees the payment of any missed dividends to shareholders.

A

Cumulative Preferred stock

83
Q

pays a dividend and can be converted into common stock at a fixed conversion ratio after a specified date.

A

Convertible Stock

84
Q

pay both preferred dividends plus an additional dividend to their shareholders.

A

Participating Stock

85
Q

an investor borrows a security, sells it on the open market, and expects to buy it back later for less money.

A

Short Stock

86
Q

You own the stock.

A

Long stock

87
Q

Proportionate ownership will not be diluted if additional shares are issued.

A

Preemptive rights

88
Q

allows you to borrow money from a brokerage firm to buy securities.

A

Margin account

89
Q

commissions, markups, and markdowns of more than 5% are prohibited on standard trades, including over-the-counter and stock exchange listings, cash sales, and riskless transactions.

A

5% Markup policy

90
Q

the process of changing the weightings of assets in an investment portfolio. It is like a tune-up for your car: it allows individuals to keep their risk levels in check and minimize risk.

A

Portfolio rebalancing

91
Q

offering an asset of value (collateral) as backing a loan. If you default on the loan, the lender can take the asset to recoup their money.

A

Hypothecation Agreement

92
Q

A BD failing to honor a firm quote.

A

Backing away

93
Q

known for following the cycles of an economy through expansion, peak, recession, and recovery.

A

Cyclical stock

94
Q

a financial instrument used to document and identify a stock seller’s obligation to deliver a pending dividend to the stock’s buyer.

A

Due bill

95
Q

an insurance product that provides an income for life to both partners in a marriage.

A

Join with Last survivor life annuity

96
Q

unpaid interest related to credit cards, loans, investments, savings and beyond.

A

Accrued Interest

97
Q

, arises from the change in price of one currency in relation to another.

A

Currency Risk

98
Q

the potential risk where future proceeds, such as the coupon payments or debt principal, will need to be reinvested at a lower interest rate compared to the original yield

A

Reinvestment Risk

99
Q

a written communication regarding securities being publicly offered disseminated by the issuer during the waiting period of an initial public offering (IPO) that discloses information that would not be included in the registration statement.

A

Free writing prospectus

100
Q

a legal document that states the objectives, risks, and terms of an investment involved with a private placement.

A

Offering Memorandum

101
Q

debt security issued by a government to support government spending and obligations

A

Government Bonds

102
Q

a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, mergers & acquisitions, or to expand business.

A

Corporate Bonds

SIE Exam (1 decks)

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