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EXAMFX SIE EXAM AND PRACTICE EXAM
NEWEST EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
What is the maximum amount of SIPC coverage available to each separate customer?
Correct answer: $500,000 including up to $250,000 in cash
If a customer purchases securities and does not settle the account 4 business days, what should the brokerage firm do first?
Correct answer: Ask for an extension of time from the SRO or
cancel the trade and sell off the purchased securities
When must a customer who purchases securities in a cash or margin account pay for the securities?
Correct answer: 4 business days
What is the maximum insurance the SIPC provides customer accounts for unreturned cash?
Correct answer: $250,000
If a customer purchases securities and does not settle the account in 4 business days, what is the brokerage firm's first order of business?
Correct answer: To sell off the purchased securities and freeze
the account for 90 days
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What act covers the trading of securities after they have been issued, the regulation of exchanges, and the regulation of broker/dealers?
Correct answer: The Securities Exchange Act of 1934
What term describes the legislation that regulates the sale of securities at the state level?
Correct answer: Blue Sky laws
What entity is responsible for the safekeeping of an investment company's cash and securities?
Correct answer: The custodian
Between what two parties does the underwriting agreement exist?
Correct answer: The issuer and the managing underwriter
What FINRA bylaw regulates to dealings between member firms?
Correct answer: Uniform Practice Code
What FINRA bylaw defines the proper methods for handling violations of trade practice rules?
Correct answer: Code of Procedure
An underwriter is also known as what?
Correct answer: Investment Banker
What act of legislation created The Securities and Exchange Commission?
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Correct answer: The Securities Exchange Act of 1934
What FINRA bylaw is concerned with the settlement of disputes?
Correct answer: Code of Arbitration
What is the maximum insurance the SIPC provides customer accounts for unreturned securities?
Correct answer: $500,000
When a firm effects trades for its own account, it is known as the principal. In what capacity is it considered to act?
Correct answer: Dealer
What SRO enforces MSRB rules?
Correct answer: FINRA
An investment adviser receives a fee for his services. What is this fee classified as?
Correct answer: An operating expense of the fund
Under Reg. T, what can a customer do if his account is frozen for 90 days?
Correct answer: Purchase securities on a cash basis
Whether the broker/dealer acted as an agent or a principal in a transaction must be disclosed on what document?
Correct answer: Trade confirmation
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If an investor wanted to purchase an unlisted security, where would the order be entered?
Correct answer: In the over-the-counter market
What are the NYSE trading hours?Correct answer: 9:30 AM - 4:00 PM Eastern Time
After a security is issued in the primary market, it trades in what market?
Correct answer: Secondary market
When is a "red herring" prospectus distributed?
Correct answer: During the cooling-off period
What is the term for the date when the SEC receives a registration statement from an issuer?
Correct answer: Filing date
What type of securities offering cannot be advertised to the public?
Correct answer: Regulation D
A listed security trading OTC is trading in what market?
Correct answer: Third market
A publicly traded company issues more shares in order to finance a new factory. What type of offering is this?
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