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SIE > Test 2 > Flashcards

Test 2 Flashcards

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SIE Exam flashcards
1
Q

Realized appreciation is

A

The net appreciated value in a security that has been sold

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2
Q

A legal entity that offers securities to investors is

A

An issuer

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3
Q

The fed fund rate is the interest rate that

A

One bank charges another for overnight borrowing

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4
Q

What are the benefits of writing covered calls?

A

Income and partial hedge

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5
Q

Face amount certificates issue debt certificates that offer predetermined interest sum payments. These certificates have a maturity of at least

A

24 months

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6
Q

A customer placed a market order. This means

A

No price is set and the order is to be filled at the best available market price

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7
Q

A redeemable security is

A

A security with no secondary trading

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8
Q

An income statement

A

Covers financial activity over a period of time

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9
Q

All of the following are true regarding electronic communication networks (ECNs)

A

They are used for fourth market trades

They facilitate trades between institutions

Transactions are executed without the broker

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10
Q

If the gross domestic product of one year is compared to the GDP of another year the comparison would be most valid if it were made

A

In constant dollars

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11
Q

An investor is interested in a REIT that will provided immediate income. The investor would be best served by

A

Mortgage REIT

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12
Q

Which of the following apply to a put option contract?

A

The right to sell at a strike price

The obligation to buy at a strike price

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13
Q

Which of the following is synonymous with market risk?

A

Systematic risks

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14
Q

Regarding CDSCs which of the following is true?

A

They represent alternate methods of recovering fund market costs

For a given holding period costs associated with each class will differ

The different share class options should always be pointed out by the rep

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15
Q

Which type of stock would a person own for the best type of assurance of receiving a dividend income?

A

Cumulative preferred

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16
Q

The ex dividend date is

A

The first date in which the stock trades without the dividend

17
Q

Government securities regular settlement is

A

Next day

18
Q

The act that requires financial institutions to develop implement and monitor procedures that prevent its agents and associates from misusing nonpublic information is the

A

Securities and exchange act of 1934

19
Q

In a custodian account the responsibility of tax liabilities from dividends interest income and capital gains belong to the

A

Minor

20
Q

According to FINRA rules which of the following fall under the definition of a independently prepared reprint

A

A copy of a magazine article of retirement planning issued by a publisher that is not affiliated with the member

21
Q

Which of the following statement regarding limit orders is true?

A

A limit may never be executed

22
Q

Which of the following joint account is designed specifically for married couples?

A

Tenancy by the entirety

23
Q

Which of the following is true about treasury bills?

A

They are issued in bio entry form

24
Q

Your client has a portfolio of treasury bonds you are concerned about a rise in interest rates. Which of the following would you recommend?

A

Buy t bond puts

25
Q

Which of the following hedging positions best reduces risks?

A

Buy 100 shares of ABC stock and buy 1 ABC put

26
Q

Which type of investment company issues certificates that can be redeemed for a fixed amount on a specified date

A

Face amount certificate

27
Q

Which of the following may not be purchased on a margin?

A

Mutual fund

28
Q

What is an underwriters maximum sales charge?

A

10%

29
Q

Which of the following would ensure that the number of shares printed on the stock certificates are equal to the number of shares that are outstanding for the corporation

A

Registrar

30
Q

All of the following are characteristics of unit investment trust?

A

Units are redeemable by the issuer

A fixed portfolio

No secondary market trading

31
Q

Which of the following instruments trades on a discount yield?

A

Treasury bills

32
Q

Which of the following is true regarding an individual account?

A

No one but the owner may give trade instructions unless the customer has provided advanced written permission

SIE (23 decks)

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