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EXAMFX SIE EXAM AND PRACTICE EXAM
NEWEST 2026-2027 ACTUAL EXAM COMPLETE
300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
EXAMFX SIE EXAM
An investor receives a confirmation for the purchase of a foreign
company's shares that was executed on a U.S. exchange. What
type of shares has the investor purchased? - CORRECT
ANSWER-American Depository Receipts (ADRs)
Who is responsible for transferring ownership of the stock
certificate? - CORRECT ANSWER-Transfer agent
What type of common stock has no dividend or voting rights? -
CORRECT ANSWER-Treasury stock
A convertible preferred stock with a conversion ratio of 4:1 is
trading at $100 and is at parity with the common stock. What is
the price of the common stock? - CORRECT ANSWER-$25
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What is the term for a portion of total authorized shares that are
actually sold to investors? - CORRECT ANSWER-Issued shares
A shareholder owns 100 shares of stock with cumulative voting
rights. If there are 4 vacancies being voted upon, what is the
maximum number of votes the shareholder may cast for any one
vacancy? - CORRECT ANSWER-400
What does the capitalization of a corporation consist of? -
CORRECT ANSWER-Stocks and bonds
What is the term for securities purchased in unregistered, private
sales from the issue? - CORRECT ANSWER-Restricted
securities
What is the term for the number of outstanding shares of a
corporation multiplied by the stock price? - CORRECT
ANSWER-Market Cap (market capitalization)
Typically, preferred stock has a par value of what amount? -
CORRECT ANSWER-$100
How is the number of outstanding stock shares calculated? -
CORRECT ANSWER-Issued shares minus Treasury stock
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In bankruptcy liquidation what is paid out first? - CORRECT
ANSWER-Employee back wages
What kind of bond is issued at a deep discount from the U.S.
Treasury? - CORRECT ANSWER-Zero-coupon bond
What is another name for high-yield bonds? - CORRECT
ANSWER-Junk bonds or speculative bonds
Which type of municipal bond is backed by the full faith, credit
and taxing power of the issuer? - CORRECT ANSWER-General
Obligation bonds
A municipality issued bonds to finance improvements to its
sewer system. Bondholders will be repaid through increased
rates for water and sewer services. What type of bonds are
these? - CORRECT ANSWER-Revenue bonds
What is measured by the yield to maturity? - CORRECT
ANSWER-The total performance of a bond from the time of
purchase until maturity
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If the underwriter is selected by the issuer to purchase bonds,
what status does this give the offering? - CORRECT ANSWERNegotiated
For discount bonds, name the yields from highest to lowest. -
CORRECT ANSWER-Yield to maturity, current yield, nominal
yield
Which government agency issues are backed by the full faith
and credit of the U.S. government? - CORRECT ANSWERGNMA (Ginnie Mae)
The quote "Bid 1.50 and Ask 1.45" is for what type of U.S.
Treasury security? - CORRECT ANSWER-T-Bills
What are the terms to maturity for a bond and how long is each
term? - CORRECT ANSWER-Short term: less than 2 years
(Bills), intermediate term: 2 to 10 years (Notes), and long term:
more than 10 years (bonds).
When a bond is sold, who receives the accrued interest? -
CORRECT ANSWER-The seller
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