FINRA SIE CORE EXAM 2026 TEST QUESTIONS AND
SOLUTIONS RATED A+
✔✔Which of the following statements is true about treasury stock?
A. it has voting rights
B. it receives dividends
C. it is issued stock that has been subsequently reacquired by the corporation
D. it is authorized stock that has not been issued and is held in the corporation's
treasury - ✔✔C
✔✔Which of the following outcomes are possible for the writer of a covered call option?
A. profit limited and loss limited
B. profit limited and loss unlimited
C. profit unlimited and loss limited
D. profit unlimited and loss unlimited - ✔✔A
✔✔The computation of dollar prices and accrued interest on municipal bonds is
normally on what calendar basis?
A. 30/360
B. 30/365
C. actual/360
D. actual/365 - ✔✔A
✔✔A registered representative is reviewing the following portfolio:
-30% ABC energy company
-30% XYZ health care company
-30% exchange-traded fund
-10% money market funds
Which of the following risks is inherent in this portfolio?
A. credit
B. liquidity
C. political
D. nonsystematic - ✔✔D
✔✔A company announces a tender offer to its shareholders with the intent to buy a
maximum of 1 million shares of its outstanding stock at $10 per share and sets no
minimum number of shares to be purchased. An investor wants to participate in this
offer and tenders his 1,000 share position. At the close of the offer period, only 900,000
shares have been tendered. How many, if any, of the investor's shares will the company
purchase?
, A. 0
B. 100
C. 900
D. 1000 - ✔✔D
✔✔When is interest on Treasury notes paid?
A. quarterly
B. semiannually
C. annually
D. at maturity - ✔✔B
✔✔In the over-the-counter market, the term "spread" refers to the difference between
the:
A. bid and asked prices
B. offered and asked prices
C. indicated and firm prices
D. opening and closing prices - ✔✔A
✔✔Which of the following investments are generally traded according to their average
life rather than their stated maturity dates?
A. corporate bonds
B. government bonds
C. asset-backed securities
D. fixed-rate capital securities - ✔✔C
✔✔A broker-dealer permitted to accept payment for a new issue from a new customer
when the:
A. registration is effective
B. red herring is delivered
C. preliminary prospectus is amended
D. transaction takes place during the cooling-off period - ✔✔A
✔✔A registered representative (RR) who wants to place a mutual fund advertisement
must obtain written approval from which of the following parties?
A. FINRA
B. each states securities administrator
C. a registered principal of the RR's firm
D. the investment management division of the appropriate regional SEC office - ✔✔C
SOLUTIONS RATED A+
✔✔Which of the following statements is true about treasury stock?
A. it has voting rights
B. it receives dividends
C. it is issued stock that has been subsequently reacquired by the corporation
D. it is authorized stock that has not been issued and is held in the corporation's
treasury - ✔✔C
✔✔Which of the following outcomes are possible for the writer of a covered call option?
A. profit limited and loss limited
B. profit limited and loss unlimited
C. profit unlimited and loss limited
D. profit unlimited and loss unlimited - ✔✔A
✔✔The computation of dollar prices and accrued interest on municipal bonds is
normally on what calendar basis?
A. 30/360
B. 30/365
C. actual/360
D. actual/365 - ✔✔A
✔✔A registered representative is reviewing the following portfolio:
-30% ABC energy company
-30% XYZ health care company
-30% exchange-traded fund
-10% money market funds
Which of the following risks is inherent in this portfolio?
A. credit
B. liquidity
C. political
D. nonsystematic - ✔✔D
✔✔A company announces a tender offer to its shareholders with the intent to buy a
maximum of 1 million shares of its outstanding stock at $10 per share and sets no
minimum number of shares to be purchased. An investor wants to participate in this
offer and tenders his 1,000 share position. At the close of the offer period, only 900,000
shares have been tendered. How many, if any, of the investor's shares will the company
purchase?
, A. 0
B. 100
C. 900
D. 1000 - ✔✔D
✔✔When is interest on Treasury notes paid?
A. quarterly
B. semiannually
C. annually
D. at maturity - ✔✔B
✔✔In the over-the-counter market, the term "spread" refers to the difference between
the:
A. bid and asked prices
B. offered and asked prices
C. indicated and firm prices
D. opening and closing prices - ✔✔A
✔✔Which of the following investments are generally traded according to their average
life rather than their stated maturity dates?
A. corporate bonds
B. government bonds
C. asset-backed securities
D. fixed-rate capital securities - ✔✔C
✔✔A broker-dealer permitted to accept payment for a new issue from a new customer
when the:
A. registration is effective
B. red herring is delivered
C. preliminary prospectus is amended
D. transaction takes place during the cooling-off period - ✔✔A
✔✔A registered representative (RR) who wants to place a mutual fund advertisement
must obtain written approval from which of the following parties?
A. FINRA
B. each states securities administrator
C. a registered principal of the RR's firm
D. the investment management division of the appropriate regional SEC office - ✔✔C
