FINRA Practice SIE Exam Questions with Verified Answers
The redemption value of an open-end investment A firm is a participant in a public offering. To sell
company's shares is based on the: a substantial amount of the securities to its
previous offering price customers, the firm agrees to repurchase the
previous closing NAV shares at no less than the original sales price.
NAV computed after the order is received Such agreements are:
offering price computed after the order is prohibited as fraudulent and manipulative.
received - ANSWER -NAV computed after Permissible if the securities are deposited into
the order is received escrow.
prohibited unless the firm immediately sets aside
funds for the repurchase
The computation of dollar prices and accrued permissible if the customers retain the right to sell
interest on municipal bonds is normal on what the securities into the open market. -
calendar basis? ANSWER -prohibited as fraudulent and
30/360 manipulative
30/365
Actual/360
Actual/365 - ANSWER -30/360 Under SEC S-P (Consumer Privacy), which of
the following information must a firm include in its
customer privacy and opt-out notices?
Blue-sky laws are regulated by which of the the address of the firm's website
following entities? the fee to opt out from the privacy program
SEC the deadline by which to opt out from the privacy
MSRB program
FINRA the policies to protect the security of nonpublic
state securities regulators - ANSWER - information - ANSWER -the policies to
State securities regulators protect the security of nonpublic information
At the time of issuance, which of the following UTMA accounts are opened under the tax ID
securities normally has the longest period to number of the:
expiration? minor
Rights donor
Options parent
Warrants custodian - ANSWER -minor
Repurchase agreements - ANSWER -
Warrants
Under FINRA rules, noncash compensation
connected with the sale of variable contracts
Regular way settlement on Treasury Bonds is: includes all of the following items EXCEPT:
same day gifts
next business day meals
second business day lodging
fifth business day - ANSWER -next commissions - ANSWER -commissions
business day
Describe the difference between primary
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, FINRA Practice SIE Exam Questions with Verified Answers
distribution and secondary distribution. - bonds
ANSWER -a primary distribution involves a
sale of newly issued shares by the issuer while a
secondary distribution involves the sale of What is the concept of an annuity contract? -
already issued and outstanding shares ANSWER -the kind of annuity selected
partly determines the payment amounts to the
annuitant
If a market maker posts a quotes of 10.00 - 10.10
(25x10), which of the following actions is the
market maker willing to take? Which of the following statement is true about all
sell 1,000 shares at $10 and buy 2,500 shares at US Gov agency issues?
$10.10 they are exempt from federal taxes
buy 2,500 shares at $10 and sell 1,000 shares at they are exempt from registration under the
$10.10 Securities Act of 1933
sell 100 shares at $10 and buy 250 shares at they are issued in bearer form only
$10.10 they are general obligations of the fed gov -
buy 250 shares at $10 and sell 100 shares at ANSWER -they are exempt from
$10.10 - ANSWER -buy 2,500 shares at registration under the Securities Act of 1933
$10 and sell 1,000 shares at $10.10
Direct participation programs (DPP's) provide:
All of the following risks apply to both foreign and liquidity and transparency
domestic debt instruments EXCEPT: exposure to non-correlated assets with steady
political returns
exchange market-related correlations with higher average
repayment returns
interest rate - ANSWER -exchange investors with direct purchases of stock from
public companies - ANSWER -exposure to
non-correlated assets with steady returns
A married couple who earned income that
exceeded $300k in each of the prior two years
and reasonably expects the same for this current Which of the following outcomes are possible for
year is: the writer of a covered call option?
a qualified investor profit limited and loss limited
an accredited investor profit limited and loss unlimited
an institutional investor profit unlimited and loss limited
a qualified institutional buyer - ANSWER - profit unlimited and loss unlimited -
an accredited investor ANSWER -profit limited and loss limited
The owner of which of the following products is when is interest on treasury notes paid?
MOST exposed to inflationary risks? quarterly
utility stocks semiannually
treasury bills annually
treasury bonds at maturity - ANSWER -semiannually
blue chip industrials - ANSWER -treasury
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The redemption value of an open-end investment A firm is a participant in a public offering. To sell
company's shares is based on the: a substantial amount of the securities to its
previous offering price customers, the firm agrees to repurchase the
previous closing NAV shares at no less than the original sales price.
NAV computed after the order is received Such agreements are:
offering price computed after the order is prohibited as fraudulent and manipulative.
received - ANSWER -NAV computed after Permissible if the securities are deposited into
the order is received escrow.
prohibited unless the firm immediately sets aside
funds for the repurchase
The computation of dollar prices and accrued permissible if the customers retain the right to sell
interest on municipal bonds is normal on what the securities into the open market. -
calendar basis? ANSWER -prohibited as fraudulent and
30/360 manipulative
30/365
Actual/360
Actual/365 - ANSWER -30/360 Under SEC S-P (Consumer Privacy), which of
the following information must a firm include in its
customer privacy and opt-out notices?
Blue-sky laws are regulated by which of the the address of the firm's website
following entities? the fee to opt out from the privacy program
SEC the deadline by which to opt out from the privacy
MSRB program
FINRA the policies to protect the security of nonpublic
state securities regulators - ANSWER - information - ANSWER -the policies to
State securities regulators protect the security of nonpublic information
At the time of issuance, which of the following UTMA accounts are opened under the tax ID
securities normally has the longest period to number of the:
expiration? minor
Rights donor
Options parent
Warrants custodian - ANSWER -minor
Repurchase agreements - ANSWER -
Warrants
Under FINRA rules, noncash compensation
connected with the sale of variable contracts
Regular way settlement on Treasury Bonds is: includes all of the following items EXCEPT:
same day gifts
next business day meals
second business day lodging
fifth business day - ANSWER -next commissions - ANSWER -commissions
business day
Describe the difference between primary
1/9
, FINRA Practice SIE Exam Questions with Verified Answers
distribution and secondary distribution. - bonds
ANSWER -a primary distribution involves a
sale of newly issued shares by the issuer while a
secondary distribution involves the sale of What is the concept of an annuity contract? -
already issued and outstanding shares ANSWER -the kind of annuity selected
partly determines the payment amounts to the
annuitant
If a market maker posts a quotes of 10.00 - 10.10
(25x10), which of the following actions is the
market maker willing to take? Which of the following statement is true about all
sell 1,000 shares at $10 and buy 2,500 shares at US Gov agency issues?
$10.10 they are exempt from federal taxes
buy 2,500 shares at $10 and sell 1,000 shares at they are exempt from registration under the
$10.10 Securities Act of 1933
sell 100 shares at $10 and buy 250 shares at they are issued in bearer form only
$10.10 they are general obligations of the fed gov -
buy 250 shares at $10 and sell 100 shares at ANSWER -they are exempt from
$10.10 - ANSWER -buy 2,500 shares at registration under the Securities Act of 1933
$10 and sell 1,000 shares at $10.10
Direct participation programs (DPP's) provide:
All of the following risks apply to both foreign and liquidity and transparency
domestic debt instruments EXCEPT: exposure to non-correlated assets with steady
political returns
exchange market-related correlations with higher average
repayment returns
interest rate - ANSWER -exchange investors with direct purchases of stock from
public companies - ANSWER -exposure to
non-correlated assets with steady returns
A married couple who earned income that
exceeded $300k in each of the prior two years
and reasonably expects the same for this current Which of the following outcomes are possible for
year is: the writer of a covered call option?
a qualified investor profit limited and loss limited
an accredited investor profit limited and loss unlimited
an institutional investor profit unlimited and loss limited
a qualified institutional buyer - ANSWER - profit unlimited and loss unlimited -
an accredited investor ANSWER -profit limited and loss limited
The owner of which of the following products is when is interest on treasury notes paid?
MOST exposed to inflationary risks? quarterly
utility stocks semiannually
treasury bills annually
treasury bonds at maturity - ANSWER -semiannually
blue chip industrials - ANSWER -treasury
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