SIE PRACTICE EXAM 2026
COMPREHENSIVE SECURITIES INDUSTRY
ESSENTIALS STUDY GUIDE WITH
PRACTICE QUESTIONS ANSWERS and
DETAILED RATIONALES
The primary purpose of a syndicate desk in the context of an equity offering
is to:
build an order book and allocate the stock
3 multiple choice options
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
3 multiple choice options
Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer
while a secondary distribution involves the sale of already issued and
outstanding shares.
3 multiple choice options
,The computation of dollar prices and accrued interest on municipal bonds
is normally on what calendar basis?
30/360
3 multiple choice options
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
3 multiple choice options
Call protection is most valuable to a bond owner when bond prices are
generally:
rising
3 multiple choice options
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
3 multiple choice options
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
,3 multiple choice options
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program?
Designating an AML compliance officer
3 multiple choice options
Which of the following actions violates FINRA rules regarding selling away?
Engaging in private securities transactions without written prior consent of
the employing BD
3 multiple choice options
Company ABC announces a 20% stock dividend for its common
shareholders. If a customer holds 1,000 shares at $50.00, what is the new
price and number of shares following the payment of the stock dividend?
1,200 shares at $41.67
3 multiple choice options
Roth 401(k) and Roth individual retirement account (IRA) plans share
which of the following features?
Qualified distributions are excluded from federal income tax
3 multiple choice options
, An associated person who is not a registered representative is permitted to
engage in which of the following activities?
Provide account opening forms to a new customer
3 multiple choice options
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
3 multiple choice options
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from which of the following
parties?
A registered principal of the RR's firm
3 multiple choice options
Under normal circumstances, a customer's letter of intent on a mutual fund
purchase is valid for what maximum period of time?
13 months
3 multiple choice options
To offer its shareholders a privilege to obtain its shares at a fixed price,
which of the following products does a corporation issue?
COMPREHENSIVE SECURITIES INDUSTRY
ESSENTIALS STUDY GUIDE WITH
PRACTICE QUESTIONS ANSWERS and
DETAILED RATIONALES
The primary purpose of a syndicate desk in the context of an equity offering
is to:
build an order book and allocate the stock
3 multiple choice options
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
3 multiple choice options
Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer
while a secondary distribution involves the sale of already issued and
outstanding shares.
3 multiple choice options
,The computation of dollar prices and accrued interest on municipal bonds
is normally on what calendar basis?
30/360
3 multiple choice options
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
3 multiple choice options
Call protection is most valuable to a bond owner when bond prices are
generally:
rising
3 multiple choice options
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
3 multiple choice options
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
,3 multiple choice options
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program?
Designating an AML compliance officer
3 multiple choice options
Which of the following actions violates FINRA rules regarding selling away?
Engaging in private securities transactions without written prior consent of
the employing BD
3 multiple choice options
Company ABC announces a 20% stock dividend for its common
shareholders. If a customer holds 1,000 shares at $50.00, what is the new
price and number of shares following the payment of the stock dividend?
1,200 shares at $41.67
3 multiple choice options
Roth 401(k) and Roth individual retirement account (IRA) plans share
which of the following features?
Qualified distributions are excluded from federal income tax
3 multiple choice options
, An associated person who is not a registered representative is permitted to
engage in which of the following activities?
Provide account opening forms to a new customer
3 multiple choice options
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
3 multiple choice options
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from which of the following
parties?
A registered principal of the RR's firm
3 multiple choice options
Under normal circumstances, a customer's letter of intent on a mutual fund
purchase is valid for what maximum period of time?
13 months
3 multiple choice options
To offer its shareholders a privilege to obtain its shares at a fixed price,
which of the following products does a corporation issue?
