FINRA SIE Exam Practice Test 10

1. How are gains and losses on options treated for tax purposes?

2. Which of the following statements are true regarding real estate investment trusts (REITs)?

3. Which of the following corporate issues does an investor have the right to vote on as a common stockholder?

4. All of the following are true of stockholder voting methods except that

5. Which of the following describe the rights shareholders possesses?

I. They retain an interest in residual assets that is proportionate to their investment in the event the corporation declares bankruptcy.

II. They can access a corporation's financial information that would be otherwise held as confidential.

III. They receive a shareholder list.

IV. They can inspect a corporation's books and records.

6. Which of the following is NOT true regarding the options of an investor who possesses a warrant to purchase common stock?

7. Which of the following duties does a transfer agent NOT perform?

8. Which of the following economic indicators would be classified as a leading indicator?

I. Stock market prices

II. Corporate profit and loss

III. Permits to build

IV. Changes in borrowing (businesses and consumers)

9. When considering a corporation's balance sheet, all of the following are categorized as other assets EXCEPT

10. Of the following terms, which represents simply the value of a country's produced goods and services?

11. Which of the following would be associated with the government's efforts to slow down the economy?

I. Reduction in taxes

II. Reduction spending

III. Increase in taxes

IV. Increase in spending

12. What is an order that enables the broker to have discretion regarding the timing of its execution and price called?

13. An investor has sold short 275 shares of stock PPG at $26 per share. The market currently has PPG trading at $11 per share. The investor sees news of the company that may indicate a price increase over the short term. Which of the following would provide this investor with guaranteed protection against missing a purchase of PPG at a level at which he or she can still make a profit given the short position?

14. When orders have the same price, what is the order of prioritization for executing each?

I. Parity

II. Precedence

III. Priority

15. Which of the following are considered to be actions falling under the role of a dealer?

I. Charges a commission for their services

II. Participates in the trade by trading in and out of his or her own account

III. Fills the role of market maker

IV. May facilitate only the order execution for a customer

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