1
SIE PRACTICE EXAM PRACTICE
QUESTIONS WITH SOLUTIONS
2026
Which corporate voting procedures entitles a shareholder to one vote per share,
and votes must be divided evenly among the candidates being voted on? -
correct-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. - correct-answer - Third market
An investor sells a naked call on Omikron for a $250 premium. What is true
regarding the investors position? - correct-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? - correct-answer - Securities Exchange Act of
1934
, 2
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? - correct-answer - BrokerCheck
The Federal Reserve Board performs what actions? - correct-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 -
correct-answer - Rights offering
The difference between a bond's price and the conversion parity price is referred
to as - correct-answer - conversion premium
An individual who meets what criteria must register as an investment adviser? -
correct-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 - correct-answer - participating
preferred stock
Profit sharing plans have what characteristic? - correct-answer - they can be
invested entirely in company stock
SIE PRACTICE EXAM PRACTICE
QUESTIONS WITH SOLUTIONS
2026
Which corporate voting procedures entitles a shareholder to one vote per share,
and votes must be divided evenly among the candidates being voted on? -
correct-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. - correct-answer - Third market
An investor sells a naked call on Omikron for a $250 premium. What is true
regarding the investors position? - correct-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? - correct-answer - Securities Exchange Act of
1934
, 2
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? - correct-answer - BrokerCheck
The Federal Reserve Board performs what actions? - correct-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 -
correct-answer - Rights offering
The difference between a bond's price and the conversion parity price is referred
to as - correct-answer - conversion premium
An individual who meets what criteria must register as an investment adviser? -
correct-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 - correct-answer - participating
preferred stock
Profit sharing plans have what characteristic? - correct-answer - they can be
invested entirely in company stock
