Free SIE Exam Online Practice Test 18

1. Exercise of an equity put option involves the writer:

2. The hours of operation of the Chicago Board Options Exchange are:

3. The primary difference between a stock dividend and a cash dividend is:

4. A customer complaint is formally defined as:

5. The least liquidity in the securities shown below would be found:

6. Among the reasons a corporate Board would declare a stock split

7. Sweeteners as that term is used in the investment banking community refers to issue enhancements which include:

8. The Securities & Exchange Commission was formed as part of

9. Which of the following investment instruments trades on an exchange at a market price not directly related to its net asset value?

10. When a corporation announces that it is seeking additional equity capital through a sale of additional authorized but unissued shares,

11. Among the differences between an introducing broker-dealer and a clearing carrying broker-dealer is that clearing firms:

12. Pre-emptive Rights and Stock Warrants have a number of similarities. Which of the below represent characteristics these products have in common?

I. Each has a fixed price at which the holder may purchase shares of the issuer's common stock.

II. The fixed exercise price for both products is initially set at a level below the current market value of the common stock.

III. These products are tradable on securities exchanges

IV. Both have relatively short-term expiration dates

13. When reviewing the definitions of broker-dealers and investment advisers, one would find that:

14. Keynesian economic theory deals with:

15. A significant number of public investors do not have a solid understanding of how common stock is offered to the public. Two methods are the secondary offering and the follow-on offering. Which of the below are true statements regarding these methods?