SIE Exam - Practice Test Live Explication

[@Series7Guru]

More SIE exams and practice questions kzbin.info/aero/PLK1IazV_JQbGAPytEr-d5XAynJfdJPr2m

[@TheRealZerk]

Just passed my SIE. Thank you for all of your help. On to the series 6 and 63, going for the 3-0 clean sweep!! Thanks again!!!

[@Series7Guru]

Kudos on your first testing victory! The journey of 3 and 0 begins with 1 and 0.

[@Philliam02]

Thank you Dean for all of the content you’ve put out! Thanks to your help I’ve just passed my SIE, series 6, and series 63!

[@Series7Guru]

Kudos on completing your test taking/registration hat trick! Time to put those registrations to work

[@anthonymiller7042]

Wanted to thank you. Your lessons were invaluable. I took the SIE today and passed first time. Watching your videos made the difference.

[@brendansalcido2467]

Congrats! I take mine this Saturday. I'm a bit nervous but feeling somewhat confident.

[@joycechang8820]

Thank you Dean! I repeatedly watching your clips and this clip early this morning. I passed the SIE test today.

[@Series7Guru]

Kudos on your SIE testing victory! The journey of 3 and 0 begins with 1 and 0.

[@jaredpage126]

Thank you for everything you do for all of us new comers into the industry, I appreciate the vast amount of stuff you have and am more then ready to take my SIE here in the near future! You are the best Dean!!

[@Series7Guru]

Always very gratifying when this channel contributes to future testing victories like yours

[@jaredpage126]

@@Series7Guru I got the testing Victory yesterday and wanted to come back and say thank you for all the amazing content and support you give the community! Excited to move onto the 7 and continue to use your content to get another testing victory! Cheers to you, you’re the GOAT Dean!

[@Series7Guru]

@@jaredpage126 kudos on your first testing victory! The journey of 3 and 0 begins with 1 and 0

[@dirkgently31]

Just passed. This was the last one I watched the morning of. I benefitted on at least 3 questions by knowing open-ended funds count as new issues. Thanks for all your vids and humor.

[@Series7Guru]

Kudos on your first testing victory! Tge journey of 3 and 0 begins with 1 and 0. What's your next testing victory? 6? 7?

[@dirkgently31]

@@Series7Guru 7 is next! So, starting to read chapters on the least familiar outline areas and then will work from there.

[@brendansalcido2467]

Hi Dean! I just passed my SIE! Feeling so relieved right now. I couldn't have done this without you. Onto the 7! Ill definitely be joining you for this one! You're the bomb!

[@Series7Guru]

Kudos! The journey of 3 and 0 begins with 1 and 0! See you on the Series 7 playlists.

[@katierobinson3934]

This is so helpful, I hope that you will be able to put another example out in this same layout

[@Series7Guru]

Will do

[@AndrewCapital]

Just a quick follow up, for question #27 on 1:05:23 FINRA updated the question(s) regarding of Ex-date and Record date (The BOD of Windmill Growth Fund have declared a dividend. The ex-date for the dividend will likely be on which of the following days?) and now Ex date and Record Date are now the same instead of T+1, meaning the answer would be A, correct? In today's date due to FINRA's update.

[@Series7Guru]

See my videos update. For secondary the ex date is the same date for an open end it is typically day after the record.

[@AndrewCapital]

@@Series7Guru Will do, thanks for the feedback, and great video!

[@synanedwards6828]

Thank you so much Dean, this was SO helpful and I enjoyed going through the practice questions with you! I struggle with online learning. I learn best with an in person instructor. Any advice on how I can overcome that? I have a hard time comprehending what I am reading and requires me to read the book multiple times!

[@xero7787]

@ 1:03:37 if we add we get 4200000 or 4.2 we divide by 4 we get 1.05 for the trading volume. I dont understand why we select 1.22m

[@Series7Guru]

The volume limitations under Rule 144 are the greater of 1% of the outstanding shares of the company or the average weekly trading volume over the most recent four weeks. In this example 1% of 122 million is 1.22 million. That is higher than any of the trade volumes of the last four weeks, much less the average of 1.05 million.

[@mclainhassard5671]

Hey Dean! I'm new to the financial world and I'm just beginning the "securities journey". Is this practice test playlist what you would recommend for me to watch in preparation for the SIE exam? I love your content! I have already learned more in 20 minutes than I did with many hours of book study. You rock!

[@Series7Guru]

Glad you are finding the channel helpful. Here is SIE playlist in suggested watch order kzbin.info/aero/PLK1IazV_JQbF2DcGDNhX4cFom7TWDByTV&si=o5yFJj6G5qgUnXve

[@nicolettebradshaw3240]

Hi Dean! Thank-you for an awesome video! Could you explain the math/ formulas for Question 13: A customer purchased 100 shares of MNO common stock 2 years ago for $20 per share. They now sell the shares for $23 per share. over the last two years MNo has paid a $.25 quaintly dividend. What is the total return? I keep getting 15%. Thank-you for your help!

[@Series7Guru]

$5 ($3 price appreciation + $2 dividends))/$20=

[@nicolettebradshaw3240]

@@Series7Guru thank-you!!

[@SwoopENT]

I don't know if you will see this question but for Question #19, can't the answer be either A or B? In a fiduciary, there are trusts and trusts can allow margin on the account with it being allowed in the agreement. IRAs, although not able to have margin, has "limited margin" for leveraged trading. What do you think? As a follow up, for Question 20, wouldn't the answer be C) 100,000? Rights allow proportional ownership of the shares. $2MM additional shares to a pool of $10MM would be a 20% increase. Therefore, the common stock holder has the right to own 20% of the new shares. Rights have value and can bee traded for profit. It wouldn't make sense or be fair to other stock holders if this person were issued 500,000 rights. Right?

[@Series7Guru]

I think the test is hard enough without you making even harder. 19. Of those listed, only qualified retirement accounts, such as IRAs, prohibit the use of margin. As long as the use of margin is not listed as being restricted, it is allowed in both corporate and partnership accounts, and as long as the use of margin is specifically listed as being allowed, a fiduciary account may do so. 20. All shareholders have one right per share. 500,000 shares mean 500,000 rights. 500,000 rights would buy 100,000 more shares. That was not the question asked, The question was not about the shares it was about the number of rights. A rights offering allows stockholders to purchase common stock below the current market price. The rights are valued separately from the stock and trade in the secondary market during the subscription period, which is typically 30 to 45 days. Existing shareholders receive one right per share owned. The number of rights required to purchase one share of the new issue depends on the number of outstanding shares and the number of new shares offered.

[@SwoopENT]

@@Series7Guru Thank you for typing out a well thought out response. You've earned yourself a sub from me! Will be referring to your content for the rest of my licensing exams and recommend you to others.

[@SwoopENT]

@@Series7Guru passed the SIE with your help. Thank you! Will be watching all your videos for the Series 7.

[@anthonymiller7042]

Thanks!

[@Series7Guru]

Thanks so much for the superchat! Kudos on your first testing victory! What's you next testing victory? 6? 7?

[@anthonymiller7042]

@@Series7Guru Series 7 fingers crossed!

[@leegoodman8553]

Hi on question 27 if you go by DERP why would the Ex date be the first date after the Record date? Thanks

[@Series7Guru]

For open end funds it is DREP. For secondary trading it is DERP.

[@tiffanydiaz4394]

On #25 of 43… she said 1.22 million…1 % of you said she was right but you added up the 4 numbers and divided by 4…that is not 1.22 Is it 1% of out standing shares or the average of the 4weeks

[@Series7Guru]

It is whichever is greater

[@BradleyZT]

@@Series7GuruSo its what is greater either 1% of shares or last 4 week average volume traded?

[@Series7Guru]

@BradleyZT depends could be either.

[@talwinderkaur9627]

Very helpful Thank you. SIE in 4 days any helpful tips you can give. I'm pretty good with the content outline. What's the likelihood that FINRA might ask questions on topics that are not in the content outline?

[@Series7Guru]

Zero

[@talwinderkaur9627]

@@Series7Guru Great thank you 🙇

[@vdafy]

for question 43, i thght if there is a problem during it restarts the cooling off period?

[@Series7Guru]

Not a restart an extension

[@WolfyLikesMakingPizza]

I agree the grammar is difficult and I wish they would insert commas. Studying for my SIE so I can have another adult beverage.😀

[@benbolinske7748]

Hey Dean, I did the math on question 35. If you add them all up and divide by 4 you get 1.05, not 1.22. Did I do something wrong? 1.2 + 1.1 + 1+ .9= 4.2 4.2/4= 1.05

[@Series7Guru]

What is the QID? I am not showing any math in question 35. ?????

[@Treineigraveipostei]

I'm going to take the test using English as a second language and I think Kaplan grammar is very different from the others.

[@Series7Guru]

It is different from the others. Kaplan's grammar is more like the actual test than the others.

[@ToriWestendorf]

Hey Dean! This was posted a while ago and you may have already known, but I just wanted to tell you that at the very end you give your cell number out. You may already know, but didn’t see anyone else point it out so I figured just in case!

[@Series7Guru]

Thank you for the heads up.

[@SVFFER...]

On question 20, don't you get rights to maintain proportional ownership? Wouldn't that be 100k shares?

[@Series7Guru]

No.

[@SVFFER...]

@Series7Guru okay, I will remember this for the test. Kaplan may need to update their wording. "Rights offering; an issue of additional shares of stock accompanied by the opportunity for each current stock holder to maintain proportionate ownership by purchasing additional shares before the stock is offered to nonshareholders." I do see here that rights are shareholder entitlements to have the first opportunity to purchase new shares issued by the corporation at a predetermjned price (normally below market value) in proportion to the number of shares already owned. The wording is slightly misleading, but I get the jist; the offering is so shareholders can maintain their proportionate shares when in relaity, rights give shareholders the ability to double their shares, at this discount, even when the new issuance is not doubling the OS.

[@SVFFER...]

@Series7Guru I just took a Kaplan test. Question ID: 1465313 "A corporation with 1 million shares of stock outstanding wishes to sell another 250k shares. When management conducts a rights offering, a shareholder owning 100 shares will be given stock rights to purchase how many? Answer set: A) 25 B) 125 C) 250 D) 100 Answer: A) 25 shares Explanation: Stock rights have preemptive rights and, therefore, to maintain proportionationate ownership, you will be given the right to purchase 25 additional shares as to not be diluted out of your position.

[@Series7Guru]

@SVFFER... not sure your issue on this question. Your 100 rights will buy 25 shares if you exercise. 25% is the increase in the share count.

[@willsbean9066]

Hey Dean! Found some of part 1 to be challenging but got 38/43 (88%) on part 2. I test tomorrow morning. Feeling confident. Any practice test explication videos that you think are very true to the test material in particular? Last day tips? Thanks! Your content has saved me during the studying. Taking the Series 7 soon as well.

[@Series7Guru]

You are NOT at risk. Check out my SIE in 60 minutes and then get a good night's rest.

[@willsbean9066]

Just passed! You the man Dean. Series 7 pretty soon so will be watching your vids often.

[@Series7Guru]

Kudos!

[@willsbean9066]

Aaaand Series 7 passed as well! Your content was a big help and the series 7 in 60 mins def got me a few points today. Thanks Dean!

[@dsnorcalfan]

@@willsbean9066 how long did u study for SIE and what was your routine like

[@ArnieciaLafaye85]

This review seems to be a lot different then your others and the verbiage got me back confused or is it just because of Kaplan???

[@Series7Guru]

All draws are different including this one. Don't let it throw you. Do another one.

[@ArnieciaLafaye85]

@@Series7Guru thank you I think I am over thinking it I am watching the outline breakdown and will work the Qbanks in Kaplan .

[@chandranramasamy8672]

for question 5 of 43, is the right answer Cumulative or Convertible?

[@Series7Guru]

What is the QID in the top right corner?

[@StonedSatoshi]

You got #20 wrong. They originally owned 5% of the company, so they have rights to 5% of the newly issued shares. So the answer is 100,000

[@Series7Guru]

I did not. The question didn't ask how many shares. It asked how many rights. For every share you receive a right. Different question is how many rights are needed to buy the additional shares to maintain proportionate ownership. You answered a question NOT asked! RTFQ!

[@wesleylitwin1630]

@@Series7Gurupretty positive it was 100,000. You even said directly after, your not going to be able to buy more than proportion to ownership… which would be 5%.. 100,000. Either way I’ve learned a ton from you. My test is Monday after I pass it, will be largely in part to your help, thank you 🙏🏻

[@Series7Guru]

@@wesleylitwin1630 whatever. I answered the question correctly

[@lucasdesouza2120]

How do we do question 13?

[@Series7Guru]

What is the QID?

[@lucasdesouza2120]

Total return question, 1483236 it’s asking about the total return any way you can write out the math on that?

[@Series7Guru]

@lucasdesouza2120 just posted video explication

[@Andrewramirezla]

Did she pass?

[@Series7Guru]

Of course she did.

[@Jamesbauer34512]

For anyone confused on #20… pre-emptive rights let you maintain equal percentage ownership. Rights offerings let you buy rights equal to the amount of shares you own.

[@Series7Guru]

That is not correct. The existing shareholders do not buy rights.. Rights are given to the existing shareholders. As many shares they have that is how many rights they have. If you own 1,000 shares you will have a 1,000 rights. You will need a stipulated number of rights needed to buy or subscribe to the additional shares to maintain your proportionate ownership through the rights offerinv. The shareholder can exercise their preemptive right or they can trade the rights.

[@Jamesbauer34512]

@@Series7Gurucorrect… my bad I meant use rights not buy rights. I just wanted to make the point that the question wasn’t asking how many common shares that would need to be acquired to maintain proportional ownership.