2024 SIE Exam - Complete Solutions (Answered)

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2024 SIE Exam - Complete Solutions (Answered) An investor purchased 100 units of the Connecticut Municipal Securities Trust. Which of the following statements concerning this investment in the UIT i... s accurate? A The shares must be liquidated in the open market and offer reinvestment provisions back into the trust B The shares are redeemable and offer reinvestment provisions back into the trust C The shares are redeemable but do not offer reinvestment provisions back into the trust D The shares must be liquidated in the open market and do not offer reinvestment provisions back into the trust When a broker-dealer registers with the Securities and Exchange Commission (SEC), its registration conveys which of the following? A The SEC guarantees that the conduct of the BD will abide by all securities industry rules B The SEC has made a positive determination as to the financial strength of the BD C The SEC has approved the BD's business model and affirms no antitrust laws have been violated D The SEC has accepted and granted the BD's registration to do business Which of the following securities would have the greatest taxation risk? A Preferred stock B Municipal bonds C U.S. government bonds D Common stock A municipal bond is purchased regular way on Tuesday, January 21. When does this trade settle? A Wednesday, January 22 B Thursday, January 23 C Friday, January 24 D Tuesday, January 21 Regarding different equity shareholder investment objectives, which of the following is accurate? A A growth or capital appreciation objective is achieved when dividends are declared by the board of directors B A growth or capital appreciation objective is achieved when the value of shares owned increases C Neither an income nor growth objective is achieved when dividends are declared by the board of directors D An income objective is achieved when the value of shares owned increases An RR receives a phone call from a long-time customer, who is at the airport getting ready to leave for a 3-week vacation. The customer tells the RR to keep an eye on the KAF Fund and to buy $10,000 in shares if the market takes a dip. In this situation, the order: A May be accepted, but is only in force for 24 hours B May be accepted if followed up with written confirmation within 24 hours C May be accepted, but it is only in force until the end of the trading day D May not be accepted because discretion cannot be given to an RR orally A registered representative has a client with an individual account at the firm. The representative receives a phone call from the spouse of the client, who specifies trade instructions to the representative. What can the registered representative do? A The representative can follow the trade instructions of a spouse without the transaction being approved by the client B If the customer has provided written power of attorney, giving third-party trading rights to the spouse, the representative can follow the trade instructions of the spouse C This is an example of unauthorized trading, so the representative cannot under any circumstances follow the trade instructions of the spouse D If the customer has given verbal authorization for the spouse to trade in the account, the representative can follow the trade instructions of the spouse Insufficiently describing risks and other material facts regarding an investment is considered: A Churning B Discretion C Unethical D An omission Which of the following entities is the principal federal regulatory agency for the securities industry? A Financial Industry Regulatory Authority (FINRA) B Securities and Exchange Commission (SEC) C Federal Deposit Insurance Corporation (FDIC) D Federal Reserve (Fed) XYZ Broker-Dealer has failed to register a branch office as required by FINRA, what action may FINRA take? A The member is subject to disciplinary action B FINRA will revoke the member registration C The branch office will be closed immediately D If XYZ has other branches properly registered within 20 miles, registration of each individual branch is not required What type of order is placed to stop losses that may occur, can be placed to protect the gains in a long or short position, and once the order is triggered, it is executed at the next available price? A Stop limit B Stop C Limit D Market Which of the following statements is true regarding an account with a limited non-durable power of attorney trading authorization? A The power of attorney remains legally enforceable if the client becomes mentally incompetent B Upon death of the customer the power of attorney remains in force C The third party can enter orders in the account D The third party can draw checks on the account A registered representative that works in state A wishes to mail sales materials to a potential client in state B. Which of the following statements is true? A The representative may only send materials across state lines if a prospectus is included in the mailing B The representative is not permitted to send sales materials outside of the state C The representative may send the materials without restriction D The representative must inform the potential client that sales materials cannot be mailed but are available on the firm's website Which of the following is not a characteristic of the secondary market? A An investor receives the proceeds from a sale B Primarily regulated by the Securities Act of 1933 C Price is determined by market demand D Includes the auction market and OTC market ABCD Corporation has issued preferred convertible stock at par that is convertible at $25. When current market price of ABCD common stock is $26, what is the parity price of the preferred? A $106 B $96 C $120 D $104 What is the difference between GDP and real GDP? A GDP calculates the national output or production of goods and services in 1 year. Real GDP includes goods and services produced outside a nation's boundaries by the nation's citizens B GDP is the sum of all goods and services produced in the U.S. in 1 year. Real GDP subtracts the value of all net exports from the U.S. C GDP is controlled by the Fed; real GDP is based on economic activity without government influence D GDP is the national output or production of goods and services in 1 year. Real GDP subtracts the rate of inflation from GDP An open-end management company that invests in a portfolio mirroring the S&P 500 index, with shares that can be purchased and redeemed from the underwriter at net asset value, is best described as: A A no-load fund B An ETF C A unit investment trust D A Class A fund [Show More]

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