SIE Exam: Knowledge of Capital Markets Practice Test 5

A. This form of best efforts underwriting has a target sales volume for the agreement to be effective, after which additional sales may be made, up to a limit.

B. This is an underwriting agreement in which the lead underwriter will receive no compensation unless the maximum available units are sold.

C. This is an underwriting agreement in which the lead underwriter will receive no compensation unless a minimum number of available units is sold.

D. This is an underwriting agreement in which the lead underwriter buys all securities issued.

A. Mini-maxi

B. All or none

C. Part or none

D. Firm commitment

A. Market maker

B. Dealer

C. Trader

D. Custodian

A. A custodian may be a natural person.

B. The trustee is chosen by the custodian.

C. The custodian maintains possession of the investments in the trust.

D. The custodian has a fiduciary responsibility to make choices for the benefit of the beneficiary.

A. An attorney is required.

B. Only a person other than a parent may give investments to the beneficiary.

C. Only a parent may give investments to the beneficiary.

D. The trustee may be a natural person or a business or an organization.

A. Guidance regarding a transaction must be given orally and in written form.

B. Guidance regarding a transaction must be in written form.

C. Information is maintained regarding all the investments held by officers of the firm.

D. FINRA sets rules regarding how and when the records are changed.

A. It is a firm that confirms securities transactions.

B. It is a natural person that settles securities transactions.

C. It is a firm that keeps electronic records of who owns investments.

D. It is a stock exchange.

A. Description of the products and services to be provided by the issuing firm

B. Names of members of the families of the founding officers

C. Names and geographic location of subcontractors to be used in the work of the firm

D. Names of competitors

SIE Exam: Knowledge of Capital Markets Practice Test 5

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