FINRA's SIE EXAM 1|42 Questions with Verified Answers,100% CORRECT, Exams of Business Fundamentals

Download FINRA's SIE EXAM 1|42 Questions with Verified Answers,100% CORRECT and more Exams Business Fundamentals in PDF only on Docsity! FINRA's SIE EXAM 1|42 Questions with Verified Answers An associated person who is not a registered representative is permitted to engage in which of the following? - CORRECT ANSWER provide account opening forms to a new customer At issue, which of the following debt securities mature in one year or less? - CORRECT ANSWER money market instruments Direct participation programs provide - CORRECT ANSWER exposure to non- correlated assets with steady returns When are treasury notes paid? - CORRECT ANSWER semi annually Which of the following statements is true about all U.S government agency issues? - CORRECT ANSWER they are exempt from registration under the Securities Act of 1933 Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the following investors? - CORRECT ANSWER qualified instituional buyers (QIBs) What is the effect of a stock split? - CORRECT ANSWER the price per share of common stock decreases Under the Securities Act of 1933, registration is required for which of the following securities? - CORRECT ANSWER American Depository Receipts (ADRs) Blue sky laws are regulated by which entities? - CORRECT ANSWER state securities regulators The primary purpose of a syndicate desk in the context of an equity offering is to - CORRECT ANSWER build an order book and allocate the stock Which of the following considerations should a registered representative explain to a customer when reccomending a 529 college savings plan? - CORRECT ANSWER the potential deductibility of contributions from state taxes Which of the following products is adversely impacted if the issuers credit rating is downgraded? - CORRECT ANSWER exchange trade notes (ETNs) A customer has a cash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her account statement? - CORRECT ANSWER quarterly If a market maker posts a quote of 10.00-10.10 [25x10], which of the following actions is the market maker willing to take? - CORRECT ANSWER buy 2,500 shares at 10.00 and sell 1,000 shares at 10.10 Which of the following actions is required of a broker-dealers anti money laundering (AML) program? - CORRECT ANSWER designating an AML compliance officer Which of the following investments are generally traded according to their average life rather than their stated maturity dates? - CORRECT ANSWER asset- backed securities A customer buys a 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling at what price per share at expiration? - CORRECT ANSWER $38 Under SEC Regulations SP (consumer privacy), which of the following information must a firm include in its customer privacy and opt out notices? - CORRECT ANSWER the policies to protect the security of nonpublic information Under normal circumstances, a customers letter of intent on a mutual fund purchase is valid for what maximum period of time? - CORRECT ANSWER 13 months