SIE Practice Exam

Question 1

ETN

Answer 1

Debt securities backed by the issuer

Question 2

A broker-dealer firm’s registration to do business in a given state may be revoked by

Answer 2

The state’s administrator

Question 3

Exception to the written notice and approval requirement

Answer 3

Immediate family

Question 4

For tax purposes, what is not associated with being reportable as ordinary income?

Answer 4

Gains from long-term securities transactions

Question 5

Notable characteristics of hedge funds

Answer 5

Private investment company, unregulated

Question 6

Who underwriting proceeds go to from an APO or IPO

Answer 6

Issuing company

Question 7

Who underwriting proceeds go to in secondary market

Answer 7

Existing stockholders

Question 8

Who suspicious activity reports are filed to

Answer 8

FinCEN

Question 9

Grantor actions in an irrevocable trust

Answer 9

Give up ownership of items placed in the trust,
may reduce estate taxes

Question 10

If IPO price = NAV, what is the case?

Answer 10

There is no sales charge (no-load fund)

Question 11

How long client has to return signed options contract

Answer 11

15 days

Question 12

Characteristic of acting as an agent

Answer 12

When charging a commission

Question 13

Private placement

Answer 13

When an issuing company sells securities to primarily institutional investors and a small number of wealthy individuals

Question 14

When ownership changes hands between buyer and seller

Answer 14

Settlement date of the transaction