Securities Industry Essentials (SIE) Stock Practice Questions

If a stock's EPS is $3 and the P/E ratio is 15, what is the stock's price?

• AA. $15
• BB. $30
• CC. $20
• DD. $45

A company decides to issue bonds rather than stock to raise capital. What might be a primary reason for this decision?

• AA. Tax advantages
• BB. Increase in stock dividends
• CC. Less regulatory scrutiny
• DD. Ownership dilution

Which of the following is a characteristic of common stock?

• AA. Priority over creditors at liquidation
• BB. Guaranteed returns
• CC. Voting rights
• DD. Fixed dividend payments

Which of the following would be classified as a 'blue-chip' stock?

• AA. A stable, well-established company
• BB. A speculative penny stock
• CC. A newly launched biotech firm
• DD. A high-risk tech startup

A company's stock price rises significantly. What does this generally reflect about the company?

• AA. Positive market sentiment
• BB. Decreasing revenues
• CC. Increasing losses
• DD. Aggressive debt acquisition