SIE Study Fun!!!!!

Unit 1

100

Person who manages a minor's account under the Uniform Transfers of Minors Act (UTMA) or the Uniform Gift to Minor's Act (UGMA)

Custodian

200

Institutional investor that owns and invests a minimum of $100 million in securities on a discretionary basis

Qualified Institutional Buyers

300

Which is least likely to appear on a tombstone advertisement?

A) The name of the issuer

B) The total number of shares being offered

C) The names of the investment bankers underwriting the issue

D) The expected price range of the offering

Total number of shares being offered

400

On Friday, July 1 your customer purchased 10 3% T-bonds maturing in 15 years. This trade will settle on

July 5

500

What are the two components of good delivery?

1. Endorsed by all owners whose name appears on the face of the certificate

2. Signed exactly as the name appears

Unit 2

100

What is a domestic security representing a foreign security in US Markets

American Depository Receipt

200

Which type of preferred stock is least suitable for investors looking for fixed income?

Adjustable-rate preferred

300

BigCo separates a division (KNDA Big Company) and issues stock for the new division to holders of BigCo stock. What are the tax consequences of this corporate spinoff?

There is no taxable consequence

400

Under Rule 144, which of these sales are subject to volume limitations on the number of shares sold?

1. Control person selling registered stock held for 1 year
2. Control person selling restricted stock held for 2 years
3. Nonaffiliate selling registered stock held for 1 month
4. Nonaffiliate selling restricted stock held for more than 6 months

I and II

500

What are the volume limitations under Rule 144? (number of shares a control person may sell over a 90-day period)

1% of the outstanding shares of the company or

the average weekly trading volume over the most recent four weeks

Unit 3

100

Muni bonds that 

1. are not subject to statutory debt limits

2. do not require voter approval

Revenue bonds

200

generic term for a zero-coupon bond issued by a brokerage firm and collateralized by the Treasury securities a custodian holds in escrow for the investor

Treasury receipt

300

Your customer, Eleanor, purchased an InDebt, Inc., 5% debenture at a price of 94. It matures in 12 years. What is the yield to maturity?

A) 5.32

B) 4.69

C) 5

D) 5.73

 

D) 5.73

400

When are administrative claim holders paid in liquidation?

Before any unsecured debt but after secured creditors

500

Sold as interim financing that will eventually be converted to long-term funding through the sale of bonds

Bond anticipation notes

Unit 4

100

Investment company that is not managed, doesn't trade in the secondary market, and is organized under a trust indenture

Unit Investment Trusts (UIT)

200

Maximum sales charge allowed under the Investment Company Act of 1940

8.5% of the POP

300

Funds in an annuity may be transferred to another annuity with no tax implications

1035 exchange

400

Four ways to reduce sales charge

Letter of intent

Rights of accumulation

Combination privilege

Exchange privilege

500

Subchapter M of the Internal Revenue Code requires distribution of ____ to escape taxation at the mutual fund level

90% of its NII to shareholders

Unit 5

100

Two options that are bullish

Long call and short put

200

Interest rate option strategy: When IR rises, write ____ or buy _____. 

puts, calls

300

How many days to settle the exercise of an equity option?

How many days to settle the trade of an equity option?

2, 1

400

An investor is long 1 Jan 30 call at 2. Calculate the breakeven, maximum gain, and maximum loss.

BE 32, MG unlimited, ML 200

500

Steps for setting up an account to trade options

1. Determine it is a suitable investment for the client

2. Give customer a copy of the ODD

3. ROP approves account for trading

4. Option trade can be entered

5. Customer must return signed option agreement no later than 15 days after account approval