Free SIE Exam Practice Test 46

1. All but which of the following statements are correct regarding bonds and preferred stock?

2. Which of the following is correct regarding a pre-emptive right?

3. Which of the following is a characteristic of American Depository Receipts (ADRs)?

4. Which of the following is the measure of a company's earnings per share if all convertible securities were exercised and converted to common stock?

5. Which of the following is the voice of state securities agencies responsible for efficient capital formation and grass-roots investor protection in the U.S.? Their fundamental mission is to protect consumers who purchase securities or investment advice, and their jurisdiction extends to a wide variety of issuers and intermediaries who offer and sell securities to the public.

6. Which of the following is defined as the benefit provided to an asset manager by a broker-dealer as a result of commissions generated from financial transactions executed by the broker-dealer?

7. Which of the following is/are correct regarding interest paid from municipal bonds?

(1) Interest paid from municipal bonds is not taxed by the federal government.

(2) Interest paid from municipal bonds is never taxable at the state level.

8. All but which of the following are correct regarding investment adviser representatives (IARs)?

9. Which of the following is an investor protection requirement that obligates a broker-dealer to exercise reasonable care to execute a customer's order in a way to obtain the most advantageous terms for the customer?

10. A health savings account (HSA) allows the account holder to set aside money on a/an __________ basis to pay for __________ medical expenses.

11. Which of the following is the central banking system of the United States?

12. If an investor's brokerage firm goes out of business and is a member of the SIPC, then the investor's cash and securities held by the firm may be protected up to __________, including a __________ limit for cash.

13. All but which of the following are characteristics of defined contribution plans?

14. A "penny stock" is an equity security that trades below:

15. The FDIC maintains stability and public confidence in the nation's financial system by doing all but which of the following?