SIE PRACTICE EXAM | QUESTIONS AND ANSWERS |
2026 UPDATE | WITH COMPLETE SOLUTION!!
Which corporate voting procedures entitles a shareholder to one vote per
share, and votes must be divided evenly among the candidates being voted on?
Answer - Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-
counter market? These trades allow institutional investors to trade blocks of
securities directly, rather than through an exchange, providing liquidity and
anonymity to buyers. Answer - Third market
An investor sells a naked call on Omikron for a $250 premium. What is true
regarding the investors position? Answer - The investor's potential loss is
unlimited
Which act created the SEC and empowered it with broad authority over all
aspects of the securities industry? Answer - Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment
advisor firms and advisors? Answer - BrokerCheck
The Federal Reserve Board performs what actions? Answer - It sets monetary
policy, but does not set tax policy
, An offering of shares to existing stockholders on a pro-rata basis is called a
Answer - Rights offering
The difference between a bond's price and the conversion parity price is
referred to as Answer - conversion premium
An individual who meets what criteria must register as an investment adviser?
Answer - The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends
equal to the normally specified rate, as well as an additional dividend based on
a specific predetermined condition is called a Answer - participating preferred
stock
Profit sharing plans have what characteristic? Answer - they can be invested
entirely in company stock
What is true regarding the Central Registration Depository (CRD)? Answer - It
was developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process
into a single, nationwide computer system
Its computerized database contains the licensing and disciplinary histories on
more than 650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set
of listed firms? They operate both manually and electronically to facilitate price
discovery during market opens, closes, and during periods of trading
imbalances and instability. Answer - Designated Market Makers
2026 UPDATE | WITH COMPLETE SOLUTION!!
Which corporate voting procedures entitles a shareholder to one vote per
share, and votes must be divided evenly among the candidates being voted on?
Answer - Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-
counter market? These trades allow institutional investors to trade blocks of
securities directly, rather than through an exchange, providing liquidity and
anonymity to buyers. Answer - Third market
An investor sells a naked call on Omikron for a $250 premium. What is true
regarding the investors position? Answer - The investor's potential loss is
unlimited
Which act created the SEC and empowered it with broad authority over all
aspects of the securities industry? Answer - Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment
advisor firms and advisors? Answer - BrokerCheck
The Federal Reserve Board performs what actions? Answer - It sets monetary
policy, but does not set tax policy
, An offering of shares to existing stockholders on a pro-rata basis is called a
Answer - Rights offering
The difference between a bond's price and the conversion parity price is
referred to as Answer - conversion premium
An individual who meets what criteria must register as an investment adviser?
Answer - The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends
equal to the normally specified rate, as well as an additional dividend based on
a specific predetermined condition is called a Answer - participating preferred
stock
Profit sharing plans have what characteristic? Answer - they can be invested
entirely in company stock
What is true regarding the Central Registration Depository (CRD)? Answer - It
was developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process
into a single, nationwide computer system
Its computerized database contains the licensing and disciplinary histories on
more than 650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set
of listed firms? They operate both manually and electronically to facilitate price
discovery during market opens, closes, and during periods of trading
imbalances and instability. Answer - Designated Market Makers
