SIE (SIE)

What is a "market, not-held" order? correct answer: Customer allows the rep to use her own judgement as to the price and time at which the transactions will be executed What is the taxation for non-qualified variable annuities? correct answer: - Growth distributions are taxed How do you calculate the parity price of a stock? correct answer: Parity Price = Market Value / Conversion Ratio = Market Value / (Par Value/Conversion Price) What is the term to describe rising unemployment a...

when a broker dealer charges a commission on a securities transaction, he is acting as: correct answer: an agent in the event of a stock split, who maintains a record of the shareholders eligible to receive additional shares? correct answer: transfer agent an associated person who is not a registered representative is permitted to engage in what activity? correct answer: provide account opening forms to a new customer what type of security provides investors with a stated maturity da...

Business Cycle Order correct answer: Expansion, Peak, Contraction, Trough Notice Filing correct answer: A method of registering securities at the state level that is only for Federal Covered Securities Downturns in the business cycle or economic contractions are characterized by all of the following correct answer: higher consumer debt rising numbers of bond defaults rising numbers of bankruptcies Which of the following would be associated with loans made to member banks of the Fed...

What type of risk is unique to a specific industry, business enterprise, or investment type? correct answer: Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? correct answer: Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium correct answer: the cost of an option contract, exp...

purpose of securities industry correct answer: matching investors with money to issuers that need that money to finance issuer correct answer: legal entity that sells securities in order to finance its operations (business, governments) ie. us treasury, us gov agencies, foreign governments, state and local governments, corps, banks methods issuers use to raise capital correct answer: 1) issue debt securities (bonds) and 2) issues equity securities (stocks) debt securities correct ans...

All of the following would be taxed at "earned income" rates under IRS regulations EXCEPT: correct answer: -Interest payments Under the Internal Revenue Code, royalty income from books, plays, or magazine articles, is reported as: correct answer: -earned income Which of the following would be defined as "portfolio income" under IRS regulations? correct answer: -Long term capital gains Royalties received from an oil and gas program are: correct answer: -passive income An inves...

Do the following Investment Companies/Products offer continuous share offering or fixed share counts? Mutual Funds Closed-End Funds UIT ETF correct answer: Mutual Funds: Continuous Closed-End Funds: Fixed UIT: Fixed ETF: Fixed What Term signifies that a share of common stock can be freely transferred, assigned, or delivered to another entity? a) Fungible b)Negotiable c)Portable d)Endorsable correct answer: b - A negotiable security is one that can be freely transferred, assigne...

Regular Way Settlement for Equities correct answer: T + 2 The First Day that a Buyer Buys Stock Without a Dividend correct answer: Ex-Dividend date The Last Day a Buyer Can Buy Stock and Receive the Dividend correct answer: business day before the ex-date When Ex-Dividend Date Happens Relative to the Record Date for Regular Way Trades correct answer: 1 business day before Fixed Rate Equity Security that Responds to Market Conditions like a Bond correct answer: Preferred Stock ...

how are in the money index calls options delivered correct answer: cash qualified distribution correct answer: deductible- excluded from fed income tax nonsystematic risk correct answer: bysiness or selection asset back security correct answer: traded based on average life rather than stated maturity which action is required for BD AML program correct answer: designate AML compliance officer muni accruied interest method correct answer: 30/360 stock exchange member willin...

Convertible Bondholders - Creditors of a corporations Dollar quote - Percentage of par quote Term bonds - Quoted as a percentage of par Series bonds - Same maturity, different dates of issuance Serial bond - Same date of issuance, different maturity Serial bond offering - Single issue date, differing maturities Capital appreciation - Benefit of a zero coupon bond Discount - Par value in excess of purchase price Depreciation - Non-cash expense, loss in value of an asset ...