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FINRA SIE PRACTICE EXAMINATION 2026
COMPLETE (75) CURRENT TESTING
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES.
FINRA
Prepare for the FINRA Securities Industry Essentials (SIE) Practice Exam
with focused review materials covering the structure and functions of the
securities industry, equity and debt securities, investment companies,
options, retirement accounts, market participants, regulatory agencies,
customer accounts, trading, prohibited practices, risk management, and
federal securities laws and regulations. Designed to build confidence in
understanding financial products, interpreting market concepts,
identifying regulatory requirements, and making informed decisions in
securities-related scenarios. Suitable for aspiring financial professionals,
finance students, and candidates preparing for the FINRA Securities
Industry Essentials (SIE) Practice Exam.
MULTIPLE CHOICE.
PRACTICE EXAM QUESTIONS
Question 1
A 28-year, 12% bond is callable in 10 years at 108, 14 years at 105, and
18 years at 103. How many years of call protection does this bond have?
A. 10 years
B. 14 years
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C. 18 years
D. 28 years
Question 2
Which of the following statements related to preferred stock are true?
I. The typical par value is $100
II. The typical par value is $1,000
III. It is suitable for investors seeking capital appreciation
IV. It is suitable for investors seeking income
A. I and IV
B. II and III
C. I and III
D. II and IV
Question 3
The ex-date for a mutual fund distribution is set by which of the following
parties?
A. SEC
B. NYSE
C. FINRA
D. Board of Directors
Question 4
Which of the following may the firm choose on behalf of a customer
without needing POA?
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A. Number of shares and time of trade
B. Type of security and price
C. Type of security and number of shares
D. Price and time of trade
Question 5
An investor establishes a margin account at their broker-dealer. What are
the minimum maintenance margin requirements they must abide by?
A. 25% equity for long accounts; 25% equity for short accounts
B. 25% equity for long accounts; 30% equity for short accounts
C. 70% equity for long accounts; 30% equity for short accounts
D. 70% equity for long accounts; 40% equity for short accounts
Question 6
A cash account requires customers to do which of the following?
A. Pay 25% of any security purchase
B. Pay 50% of any security purchase
C. Pay 75% of any security purchase
D. Pay fully for any securities purchases
Question 7
Calls gain intrinsic value as the market:
A. Falls
B. Is neutral
C. Rises
D. Is volatile
FINRA SIE PRACTICE EXAMINATION 2026
COMPLETE (75) CURRENT TESTING
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES.
FINRA
Prepare for the FINRA Securities Industry Essentials (SIE) Practice Exam
with focused review materials covering the structure and functions of the
securities industry, equity and debt securities, investment companies,
options, retirement accounts, market participants, regulatory agencies,
customer accounts, trading, prohibited practices, risk management, and
federal securities laws and regulations. Designed to build confidence in
understanding financial products, interpreting market concepts,
identifying regulatory requirements, and making informed decisions in
securities-related scenarios. Suitable for aspiring financial professionals,
finance students, and candidates preparing for the FINRA Securities
Industry Essentials (SIE) Practice Exam.
MULTIPLE CHOICE.
PRACTICE EXAM QUESTIONS
Question 1
A 28-year, 12% bond is callable in 10 years at 108, 14 years at 105, and
18 years at 103. How many years of call protection does this bond have?
A. 10 years
B. 14 years
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C. 18 years
D. 28 years
Question 2
Which of the following statements related to preferred stock are true?
I. The typical par value is $100
II. The typical par value is $1,000
III. It is suitable for investors seeking capital appreciation
IV. It is suitable for investors seeking income
A. I and IV
B. II and III
C. I and III
D. II and IV
Question 3
The ex-date for a mutual fund distribution is set by which of the following
parties?
A. SEC
B. NYSE
C. FINRA
D. Board of Directors
Question 4
Which of the following may the firm choose on behalf of a customer
without needing POA?
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A. Number of shares and time of trade
B. Type of security and price
C. Type of security and number of shares
D. Price and time of trade
Question 5
An investor establishes a margin account at their broker-dealer. What are
the minimum maintenance margin requirements they must abide by?
A. 25% equity for long accounts; 25% equity for short accounts
B. 25% equity for long accounts; 30% equity for short accounts
C. 70% equity for long accounts; 30% equity for short accounts
D. 70% equity for long accounts; 40% equity for short accounts
Question 6
A cash account requires customers to do which of the following?
A. Pay 25% of any security purchase
B. Pay 50% of any security purchase
C. Pay 75% of any security purchase
D. Pay fully for any securities purchases
Question 7
Calls gain intrinsic value as the market:
A. Falls
B. Is neutral
C. Rises
D. Is volatile
