Securities Industry Essentials (SIE) Exam
– FINRA | Kaplan Final Practice Questions
| Comprehensive Exam Preparation
Material
Introduction:
This document contains a large collection of Kaplan-style final
practice questions with correct answers for the FINRA
Securities Industry Essentials (SIE) Exam. It covers all major
exam topics, including equity and debt securities, options,
investment companies, retirement accounts, regulation, ethics,
taxation, and market structure.
The material is designed for exam-focused repetition and
broad content review, making it suitable as a final preparation
resource aligned with the Kaplan SIE curriculum and FINRA
exam framework.
Exam Questions and Answers:
In which of the following circumstances would a firm be
denied Financial Industry Regulatory Authority (FINRA)
membership?
a) the firm has only been in existence for three months.
,b) The firm plans to only allow registered representatives to
invest in equities and fixed notes for their customers.
c) The firm has been expelled or suspended by the foreign
equivalent of an selfregulatory organization (SRO).
d) The firm has only two principals and four registered
representatives. ---Correct Answer---c
T-notes are delivered in ---Correct Answer---book entry
Which of the following are account types that can be opened at
a broker-dealer?
I. credit account
II. Margin account
III. cash account
IV. debit account ---Correct Answer---II and III
Which of the following preferred stocks' price would remain
most stable in an environment of changing interest rates?
a) adjustable rate preferred
b) Nocumulative preferred
c) Straight preferred
,d) Participating preferred ---Correct Answer---a
A select pair or group of companies organized to underwrite
corporate or municipal securities is best known as ---Correct
Answer---a syndicate
All of the following are nonsystematic risks except
a) call risk.
b) business risk.
c) purchasing power risk.
d) capital risk. ---Correct Answer---c
Purchasing power or inflation risk is a systematic risk. Capital
risk, business risk, and call risk, among others, are
nonsystematic risks, those that portfolio diversification can
help to reduce.
An associated person is unable to work for any business other
than his member firm without having the employing broker-
dealer's ---Correct Answer---knowledge of the activity
, An investor interested in quarterly income should invest in ---
Correct Answer---utility company stock
The primary use for a revocable living trust is to ---Correct
Answer---use as a substitute for a will
Which of the following are true of traditional IRAs but not of
Roth IRAs?
I. Contributions may be deductible
II. Contributions are always deductible
III. There is a 50% penalty for failing to take the required
minimum distribution (RMD)
IV. There are income limits for making contributions ---
Correct Answer---I and III
A corporate stock is purchased on Friday, April 2, regular way.
When will the trade settle? ---Correct Answer---Tuesday, April
6
For corporate securities, regular way settlement is the trade
date (Friday, April 2) plus two business days; therefore, the
trade will settle on Tuesday, April 6.
– FINRA | Kaplan Final Practice Questions
| Comprehensive Exam Preparation
Material
Introduction:
This document contains a large collection of Kaplan-style final
practice questions with correct answers for the FINRA
Securities Industry Essentials (SIE) Exam. It covers all major
exam topics, including equity and debt securities, options,
investment companies, retirement accounts, regulation, ethics,
taxation, and market structure.
The material is designed for exam-focused repetition and
broad content review, making it suitable as a final preparation
resource aligned with the Kaplan SIE curriculum and FINRA
exam framework.
Exam Questions and Answers:
In which of the following circumstances would a firm be
denied Financial Industry Regulatory Authority (FINRA)
membership?
a) the firm has only been in existence for three months.
,b) The firm plans to only allow registered representatives to
invest in equities and fixed notes for their customers.
c) The firm has been expelled or suspended by the foreign
equivalent of an selfregulatory organization (SRO).
d) The firm has only two principals and four registered
representatives. ---Correct Answer---c
T-notes are delivered in ---Correct Answer---book entry
Which of the following are account types that can be opened at
a broker-dealer?
I. credit account
II. Margin account
III. cash account
IV. debit account ---Correct Answer---II and III
Which of the following preferred stocks' price would remain
most stable in an environment of changing interest rates?
a) adjustable rate preferred
b) Nocumulative preferred
c) Straight preferred
,d) Participating preferred ---Correct Answer---a
A select pair or group of companies organized to underwrite
corporate or municipal securities is best known as ---Correct
Answer---a syndicate
All of the following are nonsystematic risks except
a) call risk.
b) business risk.
c) purchasing power risk.
d) capital risk. ---Correct Answer---c
Purchasing power or inflation risk is a systematic risk. Capital
risk, business risk, and call risk, among others, are
nonsystematic risks, those that portfolio diversification can
help to reduce.
An associated person is unable to work for any business other
than his member firm without having the employing broker-
dealer's ---Correct Answer---knowledge of the activity
, An investor interested in quarterly income should invest in ---
Correct Answer---utility company stock
The primary use for a revocable living trust is to ---Correct
Answer---use as a substitute for a will
Which of the following are true of traditional IRAs but not of
Roth IRAs?
I. Contributions may be deductible
II. Contributions are always deductible
III. There is a 50% penalty for failing to take the required
minimum distribution (RMD)
IV. There are income limits for making contributions ---
Correct Answer---I and III
A corporate stock is purchased on Friday, April 2, regular way.
When will the trade settle? ---Correct Answer---Tuesday, April
6
For corporate securities, regular way settlement is the trade
date (Friday, April 2) plus two business days; therefore, the
trade will settle on Tuesday, April 6.
