Is this diagnostic predictive of my real score?

It is a rough guide only. Use it to find weak sections, not to predict a pass.

Under Rule 506(b) of Regulation D, an issuer may sell to:

Unlimited accredited investors and up to 35 non-accredited but sophisticated investors, without general solicitation

Unlimited investors of any type, using general solicitation

Only accredited investors, using general solicitation with verification

Up to 35 accredited investors and unlimited non-accredited investors

Which economic indicator is generally classified as a LEADING indicator?

Building permits for new private housing

Average duration of unemployment

Commercial and industrial loans outstanding

When a company's common stock rises well above the conversion price of its convertible preferred, the convertible preferred's market price will tend to:

Rise along with the value of the common it converts into

Stay near par because the dividend is fixed

Fall because conversion becomes less likely

Relative to a company's common stock and bonds, where does preferred stock stand?

Ahead of common stock but behind bonds for dividends and liquidation

Ahead of bonds but behind common stock

Ahead of both common stock and bonds

Behind both common stock and bonds

An investor owns 400 shares trading at $3. The company executes a 1-for-4 reverse split. After the split, the investor owns:

100 shares at approximately $12

1,600 shares at approximately $0.75

400 shares at approximately $12

Which statement about Treasury STRIPS is TRUE?

They are zero-coupon securities, so investors holding to maturity face no reinvestment risk

They pay semiannual interest at a floating rate

They are sold directly by the Treasury at auction as zero-coupon bonds

They are backed by pools of home mortgages

A trustee wants to open an account for a trust. The firm should obtain:

The trust agreement or a certification of trust

Signed consent forms from every trust beneficiary

Which person generally may NOT open a securities account in his or her own name without a custodian?

A 17-year-old high school student

A 30-year-old self-employed consultant

Which statement BEST describes the trade-off of placing a collar on a long stock position?

Downside is limited by the long put, and the short call's premium reduces that cost but caps upside

Downside is limited by the short call, and the long put's premium adds income but caps upside

Both upside and downside remain unlimited, but the position generates net premium income each month

Downside is eliminated entirely at no cost, and the investor keeps all upside above the call strike

A portfolio manager with a large, diversified portfolio of stocks similar to a broad market index wants protection against a market-wide decline. Which strategy is MOST appropriate?

Buy puts on each of the ten largest holdings

Free SIE / Series 7 Readiness Diagnostic

Answer the questions below without notes. At the end you get your score by outline section; use the weakest sections to set your study plan.

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Which entity sets the initial margin requirement that limits how much credit broker-dealers may extend to customers to purchase securities?

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Regulation S-P requires broker-dealers to adopt written policies and procedures that address:

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Free SIE / Series 7 Readiness Diagnostic

SIE readiness diagnostic

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Series 7 readiness diagnostic

Series 7 practice questions

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Free SIE / Series 7 Readiness Diagnostic

SIE readiness diagnostic

SIE practice questions

Series 7 readiness diagnostic

Series 7 practice questions

Other exams

Get the full Series 7 bank

Frequently asked questions

Sources

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