SIE Midterm Exam/Questions & Answers/Graded A/Latest Update

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Which of the following is NOT a characterization of the Securities Act of 1933? A) Prospectus Act B) Exchange Act C) Truth in Securities Act D) Paper Act (ANS- B) Exchange Act All of the fo... llowing are key differences between general obligation (GO) bonds and revenue bonds EXCEPT A) the requirement for voter approval B) the source of interest and principal payments C) being subject to statutory debt limits D) the type of issuer borrowing the funds (ANS- D) the type of issuer borrowing the funds A corporate bond ($1,000 PAR) purchased several years ago at $825 matures. At maturity, the bond holder will receive principal in what amount? A) An amount to be calculated based on the current yield at the time of maturity B) $175 representing the difference between the purchase price and PAR C) $1,000 face value D) $825 representing return of the purchase price (ANS- C) $1,000 face value The business cycle is best characterized as A) expansion, peak, contraction, trough B) expansion, prosperity, depression C) depression, recovery, prosperity, peak D) inflation, deflation, depression (ANS- A) expansion, peak, contraction, trough A final prospectus must include certain information. Which of the following is NOT required to be included? A) A statement by the SEC that the offering is neither approved or disapproved B) The underwriting contract and a list of all underwriters named in the contract C) A history of the business including any risks to purchasers that might be unique to that business or industry D) The intended use of the proceeds for such corporate actions including expansion, mergers, or acquisitions (ANS- B) The underwriting contract and a list of all underwriters named in the contract Which of the following direct participation programs (DPPs) is most likely to be associated with intangible costs and depletion allowances? A) Equipment leasing program B) Real estate existing property program C) Oil and gas income program D) Real estate raw land program (ANS- C) Oil and gas income program Underwriters have been taking indications of interest for shares of an upcoming new issue. Indications of interest are A) binding on the underwriters only to make available the shares once the effective date is reached B) binding on all parties C) binding only on the parties who tendered the indications to purchase the shares once the effective date is reached D) non-binding on all parties (ANS- D) non-binding on all parties [Show More]

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