Exam SIE Quiz, SIE Pass4sure Dumps Pdf
Exam SIE Quiz, SIE Pass4sure Dumps Pdf
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Tags: Exam SIE Quiz, SIE Pass4sure Dumps Pdf, SIE Latest Exam Questions, New SIE Braindumps Files, Valid Exam SIE Blueprint
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SIE Pass4sure Dumps Pdf, SIE Latest Exam Questions
Pass the Securities Industry Essentials Exam (SIE) SIE certification exam which is a challenging task. To make SIE exam success journey simple, quick, and smart, you have to prepare well and show a firm commitment to passing this exam. The real, updated, and error-free Securities Industry Essentials Exam (SIE) SIE Exam Dumps are available over the RealExamFree.
FINRA Securities Industry Essentials Exam (SIE) Sample Questions (Q130-Q135):
NEW QUESTION # 130
An investor is bullish on the technology sector and heavily invests in microchip companies. Impactful regulatory changes are announced that will negatively affect microchip manufacturing. In order to mitigate the risk to his portfolio, the investor should:
- A. Sell holdings that are unaffected by the regulatory changes.
- B. Purchase shares of other microchip companies in the technology sector.
- C. Buy more shares of the microchip companies already in his portfolio.
- D. Purchase holdings uncorrelated to the technology sector.
Answer: D
Explanation:
The announcement of negative regulatory changes introducesunsystematic risk, specific to the technology sector. Diversification into unrelated sectors can reduce exposure to this risk.
* A is correctbecause uncorrelated holdings reduce portfolio risk.
* Bis incorrect because adding more microchip companies increases exposure to sector-specific risk.
* Cdoes not address the core issue of over-concentration.
* Dis the opposite of mitigating risk.
NEW QUESTION # 131
The Options Clearing Corporation (OCC) is a registered clearing agency for which of the following products?
- A. Long-term Equity Anticipation Securities (LEAPS)
- B. Listed stocks
- C. Over-the-counter bonds
- D. Exchange-traded funds (ETFs)
Answer: A
Explanation:
The Options Clearing Corporation (OCC) is responsible for issuing and guaranteeing the performance of listed options contracts, including Long-term Equity Anticipation Securities (LEAPS), which are long-term options.
* D is correctbecause LEAPS are a type of listed options contract cleared by the OCC.
* Ais incorrect because listed stocks are not options contracts.
* Bis incorrect because over-the-counter bonds are not cleared by the OCC.
* Cis incorrect because ETFs are not options, though ETF options may be cleared by the OCC.
NEW QUESTION # 132
The process in which the buying firm must pay for the securities and the selling firm must deliver the securities is known as:
- A. The settlement of the transaction
- B. A corporate action
- C. A delivery versus payment (DVP) transaction
- D. Clearing the trade
Answer: A
Explanation:
Step by Step Explanation:
* Settlement of the Transaction: Refers to the finalization of a trade, where the buyer pays for the securities, and the seller delivers them. For most securities, regular-way settlement occurs T+2 (trade date plus two business days).
* Incorrect Options:
* Clearing the Trade: Refers to matching trade details to prepare for settlement.
* DVP Transactions: A specific type of settlement involving simultaneous payment and delivery, often used for institutional clients.
* Corporate Action: Refers to events like stock splits or dividend declarations.
References:
* FINRA and SEC Guidelines on Settlement: SEC Settlement Process.
NEW QUESTION # 133
A grandfather establishes a Uniform Transfers to Minors Act (UTMA) custodial account for his grandson and appoints an attorney as custodian. Which of the following individuals owns the account?
- A. Attorney
- B. Grandson's parent
- C. Grandfather
- D. Grandson
Answer: D
Explanation:
In a UTMA account, the minor is the legal owner of the account. The custodian (in this case, the attorney) manages the account until the minor reaches the age of majority specified by state law.
* C is correctbecause the grandson (the minor) is the account's legal owner.
* Ais incorrect because the attorney is the custodian, not the owner.
* Bis incorrect because the grandfather established the account but does not own it.
* Dis incorrect because the parent does not have ownership unless explicitly named as the custodian.
NEW QUESTION # 134
Rising economic activity is most likely to increase revenues of which of the following sectors?
- A. Healthcare
- B. Consumer staples
- C. Consumer discretionary
- D. Utilities
Answer: C
Explanation:
Step by Step Explanation:
* Consumer Discretionary Sector: Includes products and services that are not essential, such as luxury items, travel, and entertainment. Revenues increase as disposable income rises during economic expansion.
* Consumer Staples and Utilities: These sectors are defensive and less impacted by economic cycles.
* Healthcare: Also less correlated with economic cycles due to its essential nature.
References:
* SEC and FINRA Guidance on Sectors: Investopedia Sector Overview.
NEW QUESTION # 135
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Additionally, the web-based Securities Industry Essentials Exam (SIE) (SIE) practice test works on all operating systems such as Windows, iOS, Android, and Linux, providing flexibility to users. Browsers including MS Edge, Internet Explorer, Safari, Opera, Chrome, and Firefox also support the online version of the Securities Industry Essentials Exam (SIE) (SIE) practice exam. Features we have discussed in the above section of the RealExamFree Securities Industry Essentials Exam (SIE) (SIE) practice test software are present in the online format as well. But the web-based version of the SIE practice exam requires a continuous internet connection.
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