FINRA SIE Exam - Questions and Answers Who backs Jumbo CD's and are they considered negotiable? Which market trades Jumbo CD’S? They are traded on the
... [Show More] secondary market They are backed by the issuing financial institution They are considered negotiable Which of the following are taxable in a year? I Interest earned from investments II Cash Dividends from investments III Stock Dividends from investments IV Stock Splits on Common Stock Stock dividends are not taxable because they are not paid in cash Stock splits are also not taxable What are three rights of a shareholder of common stock? Right to vote on members of the BOD Right to dividends Right to transfer shares Which of the following actions by a corporation will affect an individual common shareholder's equity? I Declaration of stock dividend or Stock split II Conversion of convertible preferred stock III Repurchase of common shares outstanding (Stock buyback IV Issuance of additional common shares ABC Corp declares a 3:1 Stock split to shareholders of record on November 10th. The price of the stock will be reduced on the ex date by: The stock will be reduced on the ex date by 67% Which of the following securities trade in the secondary market? I Preferred II American Depository Receipts III Mutual Funds IV Municipal Bonds
Mutual Funds do NOT trade in the secondary market A middle age woman widowed customer has an investment objective of stable income and wants minimal market and liquidity risk. What type of preferred stock would be the best recommendation I Participating II Convertible III Straight Preferred Stock IV Variable rate preferred Bankers Acceptances I Trade at a Premium to par II Trade at a discount to par III Have a thinly traded market IV Have an active market Which of the following is needed to compute the total dollar price of a municipal bond traded on a yield bases in the secondary market? I Dated Date II Maturity Date III Call Date IV Put Date The money that bank has in excess of reserves is called the? I Clearing house funds II Federal Funds III Money Market Funds IV Available Funds An Open ended fund have a NAV of $10/share. The minimum purchase price is? I $10 II $10 plus commission III The market price IV The market price plus commission If a fund distributes a capital gain to shareholders which statements are true I The capital gain is taxable if taken as a check II The capital gain is not taxable if taken as a check III The capital gain is taxable if it is auto reinvested IV The capital gain is not taxable if it is auto reinvested
Which of the following are types of Oil and Gas direct participation programs? I Exploratory II Income III Balanced IV Combination Balanced is not a DPP What benefits do oil drilling programs provide? Intangible drilling costs are 100% deductible in the year the drilling takes place These programs give an immediate deduction Which is most subject to reinvestment risk? I Zero Coupon Bonds II Low Coupon Bonds III Medium Coupon Bonds IV High Coupon Bonds A customer places an to buy bonds. The order reads "Buy 5M ABC 9s M'35 @ 90 GTC" At which of the following will the price be executed I 89 II 90 III 91 IV 92 The order is a Limit Buy so the purchase will only be initiated at or below 90 Treasury Receipts I Pay interest semi-annually II Pay interest at maturity III Are essentially zero coupon T-notes or T-Bonds IV Are essentially Zero Coupon T- Bills They pay interest at maturity basically zero coupon T note or T Bonds Nominal Yield the interest rate, also known as the "coupon rate" which is named on the bond certificate [Show Less]