75 SIE Exam Questions - SIE Final Exam: Learn The Topics You Need To Know To Pass Your Exam!

hi Susie Rhodes here with Past Masters for this week's questions of the week I am going to answer a student request the request was for a 75 question full final exam for the Sie we better get started it's gonna be a long one regulation s Dash p security and privacy is the financial services industry adoption of the Graham Leach blightly Act the ACT is designed to protect a customers non-public information which of the following is not considered non-public information not considered so address driver's license number Social Security number or account number which one is not considered non-public information the address so you click what you believe is the correct answer within our program you click check answer you get the green check mark if you got it right you can click show explanation you can read the rationale and you can regulation as Dash p security and privacy which type of Treasury security would be best for an investor concerned about inflation Bill note tips or bonds well there's only one that has the word inflation in the name and that is a treasury inflation protected security important to remember that the actual nominal yield is not adjusted but the principal par value amount will be adjusted so that the interest payments will change if there is inflation not because the coupon rate changed but because the par value changes with inflation so tips a depression is defined as at least how many consecutive quarters of decline in GDP 632 or four so we have a depression at least six we call it the Great Recession because we got to five 2008 2009. the two common types of 529 plans are so 529 plans are ways to save for higher educational expenses Municipal funds and state funds state college plans and City College plans prepaid tuition plans or college savings plans or educational plans and Vocational plans prepaid tuition plans which there are not that many out there anymore and college savings plans those are the two common types of 529 plans you can set one up for any one of any age When comparing returns of different Investments that have different holding periods it is best to find their respective beta factors annualize the return for comparison purposes pick the highest quarterly return or determine the investment with the least risk you've got to get to an annualized return that is the best return for comparison purposes so if you have a six month holding period multiply it by two if you had a ten year holding period divide by 10 and then you can compare the annualized returns your client was so spooked by the Great Recession that she took all of her money out of the market and locked it up in her safe deposit box I might know someone who did this which type of risk has she exposed herself to business risk interest rate risk political risk or opportunity cost risk so business risk is related to the actual investment in the business itself interest rate risk primarily we see with fixed income securities debt instruments political risk no but opportunity costs risk yes what could she have earned greater than zero she's also exposed herself to inflationary risk but that was not a choice sunk pasts should always be considered in making investment decisions are avoidable help justify an investment or should not be considered in making an investment decision as nothing can reverse them sunk costs they're sunk It's an accounting term you should not consider sunk costs can't do anything to get the money back your client makes several cash deposits for five thousand dollars over a series of days in this situation all of the following would be true except what is false reword it without the except this is illegal that's false it would necessitate the filing of a suspicious activity report true it could be an attempt at placing dirty money into circulation true it it would be a red flag in an anti-money laundering program yes so this is illegal is the right answer because it is false sometimes it feels weird to pick the wrong answer and notice that I didn't just pick what I thought was the right answer right away I read all four choices that's an important test tip please do that on the exam which type of life insurance has a fixed premium minimum death benefit guarantee with the ability to earn a rate of return similar to that in the stock market variable life 20-year level term whole life or universal life well universal life has tied to interest rates whole life you're not going to earn a rate of return similar to that in the stock market 20-year level term doesn't have a rate of return at all it's just pure protection so the correct answer here variable life has a fixed premium but a variable rate of return minimum death benefit is the policies face amount an open order exists to buy a hundred shares of XYZ at 60. XYZ declares a two-for-one stock split what is the consequence of this split so the open order is in order for the purchase of six thousand dollars worth of Securities agree so let me let me fully preface things with I need a calculator I know this is really dumb right I'm an accountant I shouldn't need a calculator sometimes the zeros make me really confused and I don't want you to get it wrong so no matter what the amount of this order does not change when there is a stock split or reverse split so two to one so the order will be adjusted to be 200 shares at half the price well 200 shares at half the price is still six thousand dollars so I always double check the math so instead of a hundred shares two for one 200 shares the price has to go down divide by two that is the correct answer so stock split more shares at a lower price that open order will be adjusted a country is experiencing a political Uprising this is an example of legislative risk Sovereign risk regulatory risk or political risk so Sovereign risk you have when you own debt of a foreign country so this is political risk a carrying broker dealer is also known as a retail firm clearing firm introducing broker dealer or a prime broker a carrying broker dealer is also known as a clearing firm so they carry the client's accounts and they clear trades for introducing broker dealers a shelf registration is good for two years two months four years or six years two years although you can see shelf registrations good for up to three years sometimes but that wasn't a choice thank goodness shelf registration good for up to two years so basically what happens is the registration statement is filed with the SEC and the issuer has asked for the ability to sell more shares off the shelf during the next 24 to 36 months so things do change over time but historically it's always been a two-year shelf registration which of the following is not a type of unsystematic risk so we have systematic risk and we have unsystematic risk so unsystematic risk non-systematic risk is related to the specific investment itself where systematic risk is Market risk it is interest rate risk it is inflationary risk so what of the following is not a type of unsystematic risk business risk is unsystematic regulatory risk unsystematic political risk unsystematic purchasing power risk is systematic cannot avoid it just by diversification you would want to diversify by asset class to reduce systematic risk when selling a call the investor has sold what what calls or options so when you buy a call you've paid a premium for the right to buy shares at a specific price when you sell a call you have collected a premium you have sold a promise to sell shares at that specific price an obligation to sell it is the buyer of the option that has the power it is the seller of the option whoever is short the option the writer of the option that has an obligation all are true about unit Investment Trust except which one is false they issue redeemable units true they are a type of management company false they are a type of investment company they do not have a board of directors is true they do not have an investment advisor is true if they have an investment advisor then they are a management company so this is the false statement it's right because it's wrong which is not one of the four component obligations under regulation best interest a disclosure obligation a care obligation a know your customer obligation or a conflict of interest obligation know your customer is a finra rule it is not one of the four component obligations under sec's regulation best interest best interest includes a disclosure obligation a care obligation a conflict of interest obligation and a compliance obligation know your customer finra rule tricky question which of the following persons May a registered representative take a loan from any customer a client if they have been a client for at least five years loans between representatives and clients are prohibited by finra or an uncle finra rules do allow for a registered representative to take a loan from a client if the client is an immediate family member and an uncle is included within the finra rule for who a registered representative may take a loan from records related to Communications are not required to include which of the following the name of the person who prepared the communication the date of approval of the communication the date of the communications first and last use the name of the person who approved the communication so which one is not required the name of the person who prepared the communication we do need the name of the person who approved the communication all are valid reasons for purchasing adrs except what is not a valid reason to purchase an American depository receipt to preserve capital that does not seem like a valid reason to purchase something that's very much like buying stock in a foreign company except for traits here in the United States is denominated in U.S dollars the foreign stock is held by a Commercial Bank in the other country to create income in the form of dividends I suppose never guaranteed to simplify the investors taxes yes owning an ADR is a lot simpler for tax purposes than owning foreign stock directly to diversify the portfolio yes but you would not purchase an ADR to preserve Capital you'd purchase debt for preservation of capital Wanda passed the exam and submitted her application she may do which of the following take orders purely clerical activities until she is granted registration solicit business or make sales she can only engage in purely clerical activities until she is granted registration unsecured short-term corporate debt issued at a discount is which of the following commercial paper treasury bill bank CD or negotiable CD well it's not a treasury bill because it's issued by a corporation Bank CDs are not Securities at all negotiable CDs are issued by Banks so this unsecured short-term corporate debt is describing commercial paper it is issued at a discount it has a maximum maturity of 270 days nine months it is issued by a corporation for a short-term financing crisis which of the following statements regarding markets is correct the NASDAQ is an auction Marketplace now it's negotiated the secondary Market consists of shareholder to shareholder transactions I like that the NYSC is a negotiated Marketplace know the NYSE is an auction Securities trade them by primary market for 90 days no Securities trade one time in the primary market so the only one of these statements that is correct is the secondary Market that is shareholder to shareholder transactions the primary Market is issuer to shareholder for the very first time Trina a registered representative for the last 20 years decides to retire form u5 is filed within 30 days of her retirement should Trina change her mind and decide she would like to come back to the Securities business she has how long to reapply without having to retest six months 30 days two years or 180 days the correct answer here is two years however has a new program called maintaining qualifications program where if you had left the industry and you enroll in the program you can go for up to five years now without having to retest but if you do this you do have to enroll in the program you do pay a fee to finra and you must complete your continuing education just like you were still registered so that is a relatively new program maintaining qualifications programs so the old rule was two years and it would still be two years if Trina did not enroll in this program your client would like to buy stock that your broker dealer has in their inventory which is correct the client pays the ask and the dealer sells at the ask I like that the client pays the ask and the dealer sells at the ask claim pays a bid the dealer sells at the bid the client sells at the ask the dealer no so there's two prices there's the ask which is what the client buys at and there is the bid which is what the client sells at the client buys at the ass the dealer sells at the ask the client sells it the bid the dealer buys at the bid so just slow down on those they can be tricky the client pays the ask the client receives the bid if it is an agency transaction there is a commission if it is a dealer transaction there is a markup or mark down all of the following are used to measure Market sentiment except vix Benchmark index Advanced decline Ratio or new High new low ratio so what is not used to measure Market sentiments a benchmark index is not used to measure Market sentiment a benchmark index would be used to evaluate the performance of an investment manager you'd want them to beat The Benchmark of course which is incorrect regarding annuity payout options a straight life annuity has the highest monthly payment but no beneficiary that is true a joint and Survivor annuity will pay out monthly until the last party dies true a refund annuity will pay the annuitance balance to a beneficiary should they die before receiving the full value of their annuity I like that once chosen the insurance company will allow changes once a year that is incorrect once you choose your payout option you are locked into that for life exchange traded funds ETFs are never actively managed false are always index funds false are traded on an exchange true issue redeemable Securities false exchange traded funds are traded on an exchange they may be index funds or they may be actively managed they're most similar to closed-end mutual funds a share of stock will pay a dividend as a discretion of the company's board of directors I like that before taxes no Dividends are paid after taxes every year up to quarterly out of gross income no out of net income after tax income Common Stocks Dividends are paid after preferred stocks dividends so shares of stock pay a dividend at the discretion of the board of directors Dividends are never guaranteed a new issue will be sold in the primary Market the security being sold is a municipal bond which is an exempt security how nice of them to tell you that all prospective purchasers and purchasers of this new issue must be given a what so there's no perspectives because there is no registration filed because it is an exempt security so instead of a prospectus we have an official statement it's very similar in content but it has a different name all are true regarding hsas those are how savings accounts except what is false the earnings are free from state and federal taxes when used for medical expenses that is true contributions made or tax deductible on your federal return even if you do not itemize true your balance rolls from year to year true you are eligible for an HSA if you are enrolled in Medicare that is false which correctly describes the rights of cumulative preferred stockholders they have the right to exchange their preferred shares for common stock no that would be convertible preferred stock They will receive omitted dividends Before Common stockholders will get paid a dividend I like that they may receive an additional dividend now that would be participating preferred stock dividends will be paid before bondholders receive interest is false so the correct statement They will receive omitted dividends before Common stockholders will get paid a dividend now the issuer is not going to issue cumulative preferred stock and then omit dividends for 10 years it this just allows the cumulative preferred stockholder to know that if a dividend is omitted that they have to make it up to them before they can pay common stockholders any dividends which type of risk is related to the failure of a specific company business risk regulatory risk purchasing power risk or political risk the risk related to the failure of a specific company that is business risk which of the following complaints must be filed with finra a written email that has no merit but accuses a registered representative of making misrepresentations to a client I like that one let's check the others a verbal complaint no make them happy hope they go away a phone call in which a client complains about the lowest interest rate environment no a written complaint regarding the state of the economy and the performance of the market overall no the only complaint that would have to be filed with finrab would be this written email even though it has no merit but accuses a registered representative of making misrepresentations to a client which of the following must be included in a broker dealer's business continuity plan Roman numerals one through four so this becomes four questions in one tricky finra one procedures for the relocation of the office I like that too procedures to protect backup and recover books and Records three plans for alternate means of communications with stakeholders yes four audited financials audited financials are not included within a business continuity plan there's been so many national disasters it feels like that this business continuity plan is something that is really important these days bonds are rated for safety the higher the rating the what the nominal yield the higher the rating the lower the nominal yield the lower the rating the higher the risk the higher the risk the higher the nominal yield is going to have to be in order to convince investors to buy a poorly rated Bond a junk bond so the higher the rating the lower the nominal yield will be it's a safer oh don't they say it's your client but it is a safer instrument if your client would like to receive a dividend on a stock he would need to own the stock by the record date payable date X dividend date or Declaration date you need to own the stock by the record date your name needs to be on the books and records of the issuer by the record date a program Disclosure document is given to investors when they are purchasing a new issue shelf registration private placement or 529 plan it is the 529 plan where you give instead of a prospectus you give out a program Disclosure document 529 plans fall into the category of Municipal Securities and they have a very special title for their Disclosure document program Disclosure document different from the official statement that you would give out when selling municipal bonds new issue to fund an Esa for a given tax year the contribution must be made by December 31st April 15th December 1st or May 30th similar to an IRA contribution these were originally called educational IRAs after all which was a horrible name for them now they're Coverdale educational savings accounts esas the tax due date of April 15th goes along with the IRA contributions as well regarding electronic communications which of the following is true text messaging is exempt from review and oversight oh instant messaging is an encouraged form of client Communications no because we need to keep records emails include electronic communications as well as electronic correspondence I like that electronic communications are exempt from the review and supervision rules related to client Communications false so only one true statement there how often may a mutual fund pay dividends just like a stock dividends may be paid up to quarterly so if you know something about the real world that seems to contradict what we have to learn for the test I'm not saying that you're wrong I'm just saying for the test so like I've had students say well I have a stock that pays dividends more often and and I'm not saying that's wrong but for the test Dividends are always paid up to quarterly which federal Securities Law regulates the secondary market and its participants Securities Act of 1933. that regulates new issues it's the first date we need to know I commonly refer to it as the paper Act Investment Company Act of 1940 no that's the three types of investment companies investment advisors Act of 1970 no it is the people act the Securities Exchange Act of 1934 that regulates the secondary market and its participants one was passed at the end of 33 one was passed at the beginning of 34 they sound far apart they're really not an investor bought a portfolio of callable bonds interest rates have since gone down significantly since the bonds were purchased what should be the Investor's main concern well when do callable bonds get called when interest rates have gone up or down down when they go down enough the issuer might call those bonds so if interest rates go down the bonds may get called the bonds in the portfolio would be hard to sell the market price of his portfolio has decreased the portfolio is paying less than current interest rates or reinvestment risk what should be the Investor's main concern okay so remember if interest rates go down and they're callable bonds the issuers most likely to call the bonds market price will have gone up if interest rates have gone down and then all of the sudden the investor gets back their principal and no longer has that coupon rate anymore if they go to reinvest their money are they going to earn the same amount no because interest rates have gone down so re-investment risk those Bonds in the secondary Market before they were called would have gone up in price the SEC requires that shareholders of publicly traded companies receive a proxy statement semi-annually prior to every shareholder meeting quarterly or annually shareholders must receive a proxy statement prior to every shareholder meeting what type of trust is created during the Maker's lifetime simple testamentary complex or living it is a living intro vivos trust that is created during the Maker's lifetime a registered rep who buys stocks for his discretionary accounts and then disseminates rumors via social media designed to drive up the price of the stock so he can sell it for a profit is guilty of front running pump and dump excessive trading or insider trading this is a classic pump and dump scheme don't do it etns are shares of equity illiquid they stand for exchange traded notes by the way senior notes to trade in the secondary Market or representative of a pool of equity securities so they are liquid they are not chairs of equity they are senior notes the trade in the secondary markets which is a security forward contract option contract commodity or Futures Contract all options are securities calls and puts option contracts they are securities yeah maintenance requirements in a margin account are set by Federal Reserve board sros the states or regulation T Federal Reserve board regulation T sets the initial margin requirement in a margin account ongoing Equity or maintenance is set by sros and it's true that the firm can always choose a higher ongoing maintenance requirement than the SRO sets so finra is an SRO who sets ongoing maintenance requirements if the firm wants to have theirs hired they can it's called a house requirement in order for Sean and Rocio to be considered accredited investors which of the following is required now you can meet the definition of an accredited investor currently in one of three ways uh adjust your gross income two hundred thousand dollars if you're single three hundred thousand dollars if you're married finally jointly that would be this year and the previous two years reasonably expected to be so this year or net worth greater than a million dollars so you and your spouse's assets not you and your adult children not you and your friend but you and your spouse yes excluding the value of your primary residence or if you have an active Securities license a series 7 stock broker license 65 investment advisor representative or series 82. now simply passing these exams does not allow you to register as an accredited investor or to be considered an accredited investor you actually must have your license active so a lot of times I'll get this question can I just pass the 65 and be a con considered an accredited investor my answer is always no you have to work with a firm so let's see which one of these two Sean and Rocio meet an annual income of three hundred thousand dollars is Sharon in the previous two years I like that the 150 is not enough nothing to do without how much money they have in their brokerage account minimum net worth needs to be greater than a million so this is the only one here that would work for them and you don't have to so accredited investors can purchase private placements regulation D offerings they are restricted stock you don't have to audit their financial statements or anything like that you just have to have them sign something that says that they meet one of these three requirements today purchasing which of the following would help to hedge a portfolio against Market risk so Market risk is systematic so choices include mutual funds International stocks index options or ETFs so purchasing which of the following would help hedge a portfolio against Market risk so which of these represents the market as a whole an index option would be the best way to help to hedge a portfolio against Market risk an importer should be concerned most with which of the following types of risks Market currency reinvestment or country oh they should be concerned with currency risks currency exchange rate risk importers and exporters for sure a highly leveraged company would be one with so when we issue debt we call that leverage financing so a highly leveraged company would be one with a large amount of debt outstanding yes those other three are false sec's statutory disqualification means you cannot be affiliated with a broker dealer in any capacity true you must pay a higher registration fee no you cannot be a registered rep but you could be a partner of a burger dealer now you're borrowed from any capacity you must complete additional continuing education no it would be nice if it was that easy but no you cannot be affiliated with a broker dealer in any capacity statutory disqualification is a big thing unregistered persons May engage in clerical work yes take orders receive commissions solicit clients no unregistered persons can only engage in clerical work administrative work ministerial work they sometimes say which is a crazy weird word I think the CBOE Chicago Board options exchange will conduct fingerprint-based background checks on which of the following Roman numerals one through four exchange directors yes exchange employees yes exchange officers yes for exchange temporary Personnel independent contractors Consultants vendors and service providers fingerprint-based background checks on all of those four interests and direct participation programs are most often sold as shelf distributions through private placements by insurance agents or as initial public offerings so limited Partnerships direct participation programs they are most often sold through private placements So when you buy these the shares are not freely salable often sold under regulation D the federal private placement rule which type of business would be the hardest to raise capital for LLC S corporation C corporation or sole proprietorship oh yeah the sole proprietorship can only be owned by one person it is a type of business that cannot be sold the assets of the business can be sold but not the business itself the easiest to raise Capital would be the C corporation because they can have an unlimited number of shareholders the office of foreign asset control is located within the treasury Department it maintains a list of specially designated Nationals and blocked persons sdns these are individuals and entities from all over the world with whom U.S persons cannot conduct business the ofac regulations require broker dealers to block accounts of entities and individuals that appear on the sdn list notify finra if an individual on the sdn should want to open up an account open accounts for entities on the sdn but then promptly notify the ofac or contact the local police whenever a person on this list tries to open an account broker dealers are required to block accounts of entities and individuals that appear on the sdn list Jorge opened a Roth IRA seven years ago over those seven years he contributed forty thousand dollars his current account balance is 45 000. he is currently age 55. all of the following would allow for Jorge to make a penalty free withdrawal of contributions and earnings except disability death a trip to Europe first time home buyer expenses up to ten thousand so generally the rule is in order for the earnings to be tax-free the account must have been opened a minimum of five years ago and paid out on or after 59 and a half but Jorge is only 55. so would we waive the penalty for death disability first-time homebuyer expenses of up to ten thousand for a trip to Europe [Laughter] no no that is the one that is going to incur if he took all of the money out it would be ordinary income tax on the earnings plus a 10 penalty on the earnings the Forty thousand dollars that he contributed is his cost basis that comes back to him tax free it's in after tax dollars the Roth IRA contributions don't forget regarding trusts which is an untrue statement the beneficiary may be a minor child the beneficiary may be an incompetent person The Grand Tour may be the same person as the trustee and as the beneficiary the trustee may be any person the only one of those that is false is that the trustee may be any person the trustee must be of legal age generally age 18 and that's a requirement competent sure not not incompetent but they do not have to have any professional background to be trustee anyone of legal age may be trustee but not any person because that would mean I could name my 15 year old as trustee no the other three are true silky owns a house on a golf course she paid 150 000 for it 30 years ago as of the date of silky's death the house had a fair market value of five hundred thousand dollars her daughter Jacqueline inherited the house six months after silky's death Jacqueline sells the house for five hundred and ten thousand dollars assuming this inherited house is not Jacqueline's primary residence what are the tax consequences of this sale so when Jacqueline inherited the house she inherited it at the fair market value of 500 000. inherited assets when they are sold for more than their cost basis are taxed at long-term capital gains rates so the gain for Jacqueline would be the ten thousand dollars the difference between the cost basis of 500 000 which was the value of the house when silky died and how much Jacqueline sold it for hedge funds are for average investor safe illiquid or liquid well when you have two answers that contradict each other usually one of those do is the right answer hedge funds are not for average investors they are illiquid direct participation programs are usually organized as limited Partnerships so one or more General Partners one or more limited partners limited partners have limited liability General Partners have unlimited liability regarding payment for order flow which of the following is not true retail orders may be subject to payment for order flow that is true payment for order flow occurs when wholesalers pay money to retail Brokers for their retail orders that is true all Brokers engage in payment for order flow that is not true proponents of payment for order flow argue that if the practice were to be prohibited zero commission practices may not continue so the only false statement here is that all Brokers engage in payment for order flow that is false they don't unless due today than they did historically which formed as a registered representative used to file for registration so anyone can take this Sie exam but when you want to take a top off exam you need to apply through finra their Central registration depository we call it crd form u4 applies you for registration it will open up the window for your top off exam u5 is going to resign your registration a private over-the-counter Network where institutions trade Securities is called the secondary Market fourth Market primary Market or third markets so the primary Market is where new issues trade for the very first time issuerto shareholder secondary Market is shareholder to shareholder the third market is when a dealer takes a position in an exchange listed security to facilitate after hours trading it is the fourth Market where institutions trade Securities with each other we sometimes call these dark pools institutional transactions that are not open to all they are not price transparents dark pools fourth Market transactions Sean is long one ABC 40 call at four the most Sean can make okay I just want to say something here for a second this is just like the test your brain is like I don't know how to explain it it's like you have Whiplash your thoughts you there nothing is it's all just this random order of questions so here we are with a derivatives question and options question and we gotta compose ourselves to talk about it so long Sean is the owner of a call what is the cost of an option the cost of an option is the premium in this case four dollars a share there's a hundred shares in one contract so the cost of this for Sean is four hundred dollars that is the most he can lose when you buy anything the most you can lose is what you pay for it when you buy a call you pay a premium for the option the power to call away the shares from the seller at the strike price so in this case Sean would pay forty dollars no matter how high ABC stock price was when you buy a call the profit is unlimited the most you can make when you buy a call unlimited most you can lose when you buy a call the premium Marty has a bank CD that is going to mature in six months interest rates today are much lower than when he originally invested in the CD almost five years ago which type of risk does Marty have prepayment risk currency risk reinvestment risk or Capital risk so when that bank CD matures in six months is he going to be able to put it into another CD and earn the same amount of Interest most likely not because interest rates today are much lower than when he got into that CD so reinvestment risk so Bank CDs have reinvestment risk callable bonds have reinvestment risk bonds and maturity have reinvestment risk but especially if they're callable bonds because callable bonds are only called when interest rates have gone down which of the following is not considered an Insider under the Securities Exchange Act of 1934. the accountant for Verizon well they sound like an Insider the neighbor of the CEO of McDonald's um a stockholder who owns 11 of a company's outstanding voting stock they're an Insider there's a 10 rule the investment banker involved in taking a company public so the CEO of McDonald's would be considered an Insider but the neighbor of the CEO of McDonald's is not an Insider now if they heard information from the CEO and then traded based on it they can still get in trouble for trading on inside information but they are not by definition considered an Insider but the stockholder who owns 11 of the company's outstanding voting stock yes when they own more than 10 percent they are also an Insider which of the following is not an equity security Equity ownership common stock yes debenture no debenture is unsecured corporate debt preferred stock Equity convertible stock Equity so debenture which type of equity security would be best for an investor looking for income preferred stock foreign stock ADR or common stock now all stocks Dividends are paid to the discretion of the board of directors they are never guaranteed however preferred stock does have a fixed dividend rate so that if a dividend is paid when you own preferred stock you know how much you're going to get so of these four types of equity the best for an investor looking for income would be preferred stock par value on preferred stock is a hundred dollars the fixed dividend rate is the annual dividend so then you'd have to divide by four to figure out the quarterly dividend once again not guaranteed but if one is paid you know how much you'll get debts of foreign countries is also called Sovereign debts yes debt of foreign countries so when you invest in debt of foreign countries you have Sovereign risk who oversees finra this CBOE and the msrb who oversees the entire Securities industry Congress the Senate the SEC or the president it is the Securities and Exchange Commission that oversees the entire U.S Securities industry oversees the entire Marketplace primary Market secondary Market corporate Market Municipal Market all of it overseen by the Securities and Exchange Commission all of the following are considered non-cash compensation under finra rules except so what is not non-cash compensation lodging non-cash gifts non-cash commissions cash meals non-cash so the one that is not non-cash compensation would be commissions well click finish exam great job we did it a hundred percent so after you finish one of our exams you can click view score report you can see the exam data related to the Sie exam it is broken down into the same four sections that you see on finra's content outline you can also go into each section and review those questions so if I'd missed a question it would have been red I can click on the question and then I can read the question I can see if I got it wrong what I chose that was incorrect the right answer I can read the rationale and you can also listen who oversees finra to all of the audio explanations after you've taken an exam so I call this making your Corrections it's one of the most important places where learning will occur so certainly I want you to do well I want you to pass the exam I want you to get in our courses and 90 or better that's your ultimate goal but I recognize that you're going to make mistakes and it's when we go over those questions that we've missed that we learn so any questions that you missed in practicing this exam make notes about them make flashcards about them and then the next time you see a question related to that topic you will not miss that question the hardest part in my opinion after doing this for a very long time the hardest part about this exam is going to be this right here understanding products and their risks because you have all of these different topics but you only have like one question on cash and cash equivalents two questions on fixed income securities three questions on derivatives but you have to learn everything about options to get whatever those three questions are correct so it's the breadth of information that you need to know in order to pass the test I think that is the hardest part but you can do it you got it keep up the good work so that's it 75 question s i e practice exam I hope you learned something if you did give this video a thumbs up be sure to subscribe to our Channel and turn those notifications on if you have any ideas for any further videos just let me know in the comments below or ask me any questions at all related to this exam or the Sie exam in general thank you so much for watching keep up the good work happy studies study study study pass [Music]

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Id: pE-Bf1GkG5M

Length: 49min 48sec (2988 seconds)

Published: Tue Sep 26 2023