17 June Securities Markets Welcome to your Securities Markets The Securities & Exchange Commission (SEC) was created by Congress in: 1929 1933 1934 1940 None 1 out of 7 When a corporation goes public, it is issuing: Common Stock Preferred Stock Convertible Bonds Any of the Above None 2 out of 7 The term ‘issuer’ most often refers to: A corporation seeking to raise additional capital for expansion or modernization purposes A business which prints up securities certificates such as bonds and stocks A business which has satisfied the listing requirements of one or more approved stock exchanges A business, a municipality, or a federal governmental entity which is seeking to raise capital from the sale of securities. None 3 out of 7 The Securities Industry Essentials examination gives a candidate: the right to take one or more of the top-off representative exams the right to trade securities the right to engage in phone solicitation of sales prospects all of the above None 4 out of 7 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? Secondary offerings involve the sale of old shares other than the first time a company is going public (IPO). A follow-on is an offering of new shares other than the initial public offering (IPO). Secondary and Follow-on are two different terms for the same investment banking activity. Secondary offerings involve the resale of outstanding shares at market bid and ask pricing. None 5 out of 7 It is not unusual for a broker-dealer to fill a customer order for an NYSE stock as principal out of inventory in lieu of wiring it to the floor the exchange. this is a 4th market transaction this is a 3rd market transaction this is a 2nd market transaction this is a 1st market transaction None 6 out of 7 A candidate who fails the SIE exam three times and has waited the six-month moratorium period is preparing to take the exam for the fourth time. Which of the following is true? The candidate will be required to pass the exam or wait for a 30-day wait period before a 5th attempt. The candidate will be told by FINRA that a one-year moratorium period will be put in place. The candidate will be given a more difficult version of the exam. The candidate will have to wait another six-months if the exam is failed on the 4th try. None 7 out of 7 Time's up