SIE Exam Re-Review Sectino 1 Qs Quiz 1

Which of the following benchmark interest rates is considered a barometer of the direction of short-term interest rates?

) Federal funds rate

A broker-dealer that accepts funds and securities from customers and its correspondent member firms would most likely be which of the following?

A carrying firm

The transfer agent for a corporation is responsible for each of the following EXCEPT what?

Acting as an intermediary between the buy and sell sides of a transaction

Which of the following will NOT be found in a final prospectus?

Agreement among underwriters

Which of the following would be considered an isolated nonissuer transaction exempt from state registration under the Uniform Securities Act?

An individual buying stock from another individual without using the services of a registered representative

Which of the following would NOT be expected to be found in a tombstone advertisement for a new issue?

B) The intended purpose for which to use the sales proceeds

Which of the following organizations was created to protect investors financially from a bank failure?

FDIC

Which of the following prospectus delivery requirements for negotiable securities sold in the secondary markets is NOT accurate?

For an additional issue if the security is non-Nasdaq there is no delivery requirement.

All of the following are self-regulatory organizations (SROs) EXCEPT

SEC

What is important to remember regardnig the plan for the proceeds for a prospectus/tombstone advertisement?

While the intended purpose for which to use the sales proceeds would be expected to be found in a prospectus, it would not be found in a tombstone advertisement permitted to offer only bare bones facts about the new issue.

Regarding registration for the sale of securities, those registered under the Investment Company Act of 1940, such as mutual funds, would be considered what?

federal covered securities and not required to register at the state level

Some institutions can function as a depository and intermediary for settling transactions between buyers and sellers of securities. All of the following are acceptable for this purpose EXCEPT

national banks

The Securities Act of 1933 protects investors who buy new issues by doing all of the following EXCEPT

requiring the licensing of persons affiliated with broker-dealers

The requirement for a supplemental prospectus to be filed before each sale is applicable to

shelf registration sales

When an investor receives a final prospectus, the expectation should be that one of the following would not be found. Which is it?

the SEC's verification of accuracy

An investor has a cash account with $300,000 in securities and $40,000 in cash. The investor also has a restricted long margin account containing securities with a market value of $220,000 and equity of $60,000. What is the extent of this investor's SIPC coverage?

$400,000