SIE EXAM TEST QUESTIONS

Under rule 144, which of the following sales are subject to volume limitations on the number of shares sold? I. Control person selling registered stock held for one year II. Control person selling restricted stock held for two years III. Non-affiliate selling registered stock held for one month IV. Non-affiliate selling restricted stock held for more than six months A. III AND IV B. I AND II C. I AND III D. I AND IV

B. I and II. Control persons (insiders) are always subject to volume limitations. Non-affiliates have no volume (or any other restrictions) in the sale of registered stock. If the shares are restricted the volume limits for non-affiliates and after six months. Registered shares sold by non-affiliates have number form 144 filing requirement

American liquidators corporation has 1 million outstanding common shares. The company would like to raise capital by selling 100 million new shares. In order to accomplish this they would: A. Offer warrants to existing shareholders B. Suggest that existing shareholders go to the market and double their existing position C. Offers stock rights to existing shareholders D. Perform a stick split

C. Offer stock rights to existing shareholders The company would give the right to purchase a portion of the newly issued shares to existing shareholders sufficient to maintain their current percentage of ownership via a sock right offering. Warrants are long term and normally attached to a fixed income offer. Neither the stock split nor investors buying in the market generates capital for the company

Which of the following securities would likely provide the greatest potential for capital appreciation? a. preferred stock b. US Treasury STRIP c. common stock d. convertible bond

C. common stock would be the best for investors looking for growth. bonds and preferred stocks are better suited for conservative investors because each is primarily an income investment and has limited growth prospects

All Big Company, Inc. an NYSE- listed manufacturer of large objects, has declared a 50-cents-a-sahre dividend payable next month. All Big also has option available for trade. The actual ex-dividend date will be declared by

NYSE. Ex-dates are set by the market center where trades will likely take place.

Another term for stocks and bonds is: a. equity and debt b. shares and units c. voting and nonvoting d. taxable and tax free

a. equity is a common term for securities that represent ownership interest, such as stocks. Bonds are the most common type of debt security

All of the following are considered securities except: a. US minted gold coins b. common stock of XYZ corp c. 15 British pound put contracts d. treasury bonds

a. stocks, bonds, and options are all examples of securities. Gold and gold coins are commodity, not a security

Which of the following is not a security that an investor would purchase? a. common shares of ABC petroleum b. debt issue by ABC petroleum c. bitcoins d. windmill growth fund

c. bitcoins are considered a commodity, not a security

Which of the following would most likely require shareholder approval? a. declaring a dividend b. firing the CEO c. hiring a new CEO d. changing the corps name

d. changing the corps name is a significant matter that will require the shareholders approval. declaring dividend the and hiring and firing of senior executives is well within the boards power