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This is a SIE Exam Lesson 4 Free Quiz which is covering Special Securities. Try it and see how you do if you need help listen to the lesson over.
SIE Exam Lesson 4 Free Quiz
This is a SIE Exam Lesson 4 Free Quiz which is covering Preferred Stocks. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
1. These are rights to purchase stock at specific prices that are long-term in nature.
A. purchasing rights
B. preemptive rights
C. option rights
D. warrants
2. To which of the following can warrants be attached to?
A. sale of a common stock
B. sale of a preferred stock
C. sale of a bond
D. all of the above
3. Warrants can be traded but they should be traded along with the stock or bond that comes with them.
A. True
B. False
4. The value of the warrant is based on the ___ that it is tied to.
A. stock
B. dividend of the stock
C. interest rate of the stock
D. par value of the stock
5. Warrants allow trading foreign stocks on the US markets.
A. True
B. False
6. Rights to buy a new stock come about as a result of ___.
A. preemptive rights
B. purchasing rights
C. voting rights
D. warrants
7. How are warrants and rights similar?
A. Both warrants and rights are traded separately from the stock that they are attached to.
B. They both serve as enticement to buy stocks.
C. They are both special securities.
D. all of the above
8. How are warrants and rights different?
A. Warrants are short term in nature while rights are long term in nature.
B. Warrants are long term in nature while rights are short term in nature.
C. Warrants are attached to stocks while rights are not attached to stocks.
D. Rights are attached to stocks while warrants are not attached to stocks.
9. The warrant can be exercised immediately after the issuance of the bond or stock that is attached to it.
A. True
B. False
SIE Exam Lesson 4 Free Quiz: Special Securities: Continued
10. All warrants have expiration dates.
A. True
B. False
11. Why would companies issue warrants?
A. It would lower their tax.
B. It would increase the stock price at the secondary market.
C. It would increase their ability to issue a secondary offering of stocks at a slightly higher price.
D. all of the above
12. In order for a warrant to have an intrinsic value, ___.
A. The warrant must have a price equal to the price of the stock it is attached to.
B. The warrant must have a price higher than the price of the stock it is attached to.
C. The warrant must have a price lower than the price of the stock it is attached to.
D. The warrant must have a constant price regardless of the price of the stock it is attached to.
13. This is a negotiable security that represents securities of a non-U.S. company that trades in the U.S. financial markets.
A. bond
B. right
C. ADR
D. warrant
14. What does ADR stand for?
A. American Dividend Receipts
B. American Differential Receipts
C. American Development Receipts
D. American Depository Receipts
15. The dividends of the ADR are paid ___.
A. in US currency only
B. only in the currency of the country of the investor who bought the ADR
C. in either US currency or the investor’s country currency, whichever has the lower dividend after currency conversion
D. in any currency that the bank offers where the dividend is claimed
16. Non-sponsored ADRs are assembled by banks and brokers without the participation of the issuer of the stock.
A. True
B. False
17. How does the sponsored ADRs and non-sponsored ADRs differ?
A. Issuers of sponsored ADRs does not work with the bank or the broker in creating ADRs while issuers of non-sponsored ADRs work with the bank or the broker in creating ADRs.
B. Issuers of sponsored ADRs must provide annual and quarterly reports in English to the holders of the ADR while this is not required for the issuers of non-sponsored ADRs.
C. Holders of sponsored ADRs have voting and preemptive rights while holders of non-sponsored ADRs do not have voting and preemptive rights.
D. all of the above
18. What are the risks in ADRs?
A. currency risk
B. market risk
C. stock ownership risk
D. all of the above
19. How are foreign taxes handled in ADRs?
A. Foreign taxes reduce depending on the total value of warrant attached to the ADR.
B. Foreign taxes increase depending on the total value of warrant attached to the ADR.
C. The tax withheld can be reclaimed by the ADR holders as a credit when paying their US taxes.
D. The tax withheld can be reclaimed by the ADR holders as a debit when paying their US taxes.
20. What is the advantage of using ADRs?
A. Non-American companies using ADRs have liquidity in the US stock market.
B. Non-American companies using ADRs are not registered in the United States and therefore exempted from the reporting rules by the Securities and Exchange Commission.
C. Using ADRs instead of common stocks reduces time and cost.
D. all of the above
We hope you did well on this SIE Exam Lesson 4 Free Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
- “Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
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New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf