SOFE SOFE Certification SOFE-CFE Questions & Answers

• Question 101:

  Occasionally, the number of shares outstanding may be reduced, which is referred to as:

  A. reverse split

  B. disposal rate

  C. stock dividend

  D. capital reduction

  Correct Answer: A

• Question 102:

  SCA stocks (affiliated) are valued using which of the following methods: A. Market Value Method

  B. Statutory Equity Method

  C. Both A and B

  D. Neither A nor B

  Correct Answer: C

• Question 103:

  What are generally made on the security of buildings and land?

  A. Financial initiatives

  B. Estate loans

  C. Mortgage loans

  D. Investments loans

  Correct Answer: C

• Question 104:

  Some mortgages provide for a lump sum payment of part of the principal upon maturity; this lump sum is known as:

  A. heap payment

  B. balloon payment

  C. mass payment

  D. collective payment

  Correct Answer: B

• Question 105:

  ___________ are usually issued together with a bond or preferred stock, which entitles the holder to buy a specific amount of common stock at a specific price.

  A. Merits

  B. Certifications

  C. Mutual funds

  D. Warrants

  Correct Answer: D

• Question 106:

  Under the terms of organized securities markets, purchases should be settled in how many working days?

  A. two

  B. three

  C. five

  D. seven

  Correct Answer: B

• Question 107:

  If the stock issue is non-cumulative it behaves like common stock in that if a company does not declare a dividend, who is not entitled to a payment?

  A. bonds stock holder

  B. preferred stock holder

  C. exchange stock holder

  D. investment stock holder

  Correct Answer: B

• Question 108:

  An insurance company may invest in common stocks in order to:

  A. earn dividend income

  B. achieve equity appreciation

  C. Both A and B

  D. Neither A nor B

  Correct Answer: C

• Question 109:

  Premium paid for which bonds will be written off immediately to prevent a negative yield from being generated?

  A. Preventive holdings

  B. Detective coupon

  C. Zero coupon convertible

  D. Amortization rate

  Correct Answer: C

• Question 110:

  The amount paid plus or minus any premium or discount payment to date to adjust the value to par or face amount by maturity date is known as:

  A. amortized cost

  B. reimbursement cost

  C. neutral cost

  D. face value

  Correct Answer: A