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SIE Exam Dumps - Securities Industry Essentials Exam (SIE)

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Question # 9

If an investor is bullish on ABC, which of the following actions will he most likely take?

A.

Buy ABC puts

B.

Buy ABC stock

C.

Sell ABC calls

D.

Sell ABC stock short

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Question # 10

Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?

A.

Selling real estate

B.

Selling health insurance

C.

Professionally refereeing athletic events

D.

Passively investing in a multifamily house for rental purposes

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Question # 11

A registered representative wants to open an account for himself at a different financial institution. Under FINRA rules, which of the following accounts requires prior written consent from his employing broker-dealer?

A.

A 529 savings plan account established for his grandchild

B.

Mutual fund accounts held directly with the fund company

C.

Variable contracts registered under the Investment Company Act

D.

An investment advisory account in which securities transactions are effected

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Question # 12

A registered representative (RR) intends to enter into an arrangement for compensation with an unaffiliated entity to participate in the sale of promissory notes to the general public. Which of the following statements is true?

A.

This is a permissible arrangement, and the RR is only required to notify his firm.

B.

The RR must receive written approval from his firm prior to entering into this arrangement.

C.

The RR is required to notify his firm regarding this arrangement if compensation received is directly related to transactions.

D.

The RR is not required to provide prior notice to his firm as promissory notes are not considered securities.

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Question # 13

According to FINRA rules, under which of the following circumstances, if any, is a member firm permitted to send gifts to a registered representative of another member firm?

A.

Under no circumstances

B.

When the value of all gifts during a period of one year does not exceed $100

C.

When no single gift exceeds $100 and there is no limit on the number of gifts

D.

When no single gift exceeds $100 in value and the maximum value of all gifts per year equals $250

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Question # 14

Under which of the following circumstances, if any, is it permissible for an individual without a Power of Attorney (POA) to sign a customer's name on their behalf?

A.

Upon approval by a firm principal

B.

Upon receipt of verbal authorization provided that written authorization is subsequently provided

C.

When accounts are fully discretionary

D.

Never permissible to sign a customer's name on their behalf

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Question # 15

Which of the following strategies is best for mitigating the risk of a concentrated position?

A.

Diversification

B.

Use of leverage

C.

Dollar-cost averaging

D.

Dividend reinvestment

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Question # 16

A retail investor owns shares of Mutual Fund ABC that paid a $0.25 dividend on September 1 and closed at $10.00. What is the opening price once this fund trades on the ex-dividend date?

A.

$9.25

B.

$9.75

C.

$10.00

D.

$10.25

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