SIE FINRA PRACTICE EXAM (Questions with errorless
answers)
What is the cost basis of an inherited mutual fund? correct answers The net asset value (NAV) of
the shares when the owner dies
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer opens and
closes which of the following positions correct answers the same stock in a cash account without
paying for the stock in full
An associated person who is not a registered representative is permitted to engage in which of
the following activities correct answers provide account opening forms to a new customer
UTMA accounts are opened under the tax ID of the correct answers minor
all of the following risks apply to both foreign and domestic debt instruments except correct
answers exchange
Which of the following actions violates FINRA rules regarding selling away correct answers
engaging in private securities transactions without written prior consent of employed BD
Which of the following Form U4 reportable events results in a statutory disqualification correct
answers A felony conviction for a driving under the influence (DUI) charge
Under the Securities Act of 1933, registration is required for which of the following securities
correct answers American Depository Receipts (ADRs)
In the event of a stock split, which of the following parties is required to maintain a record of the
shareholders eligible to receive the additional shares correct answers Transfer agent
Which of the following represents the effect of a stock split correct answers The price per share
of common stock decreases
answers)
What is the cost basis of an inherited mutual fund? correct answers The net asset value (NAV) of
the shares when the owner dies
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer opens and
closes which of the following positions correct answers the same stock in a cash account without
paying for the stock in full
An associated person who is not a registered representative is permitted to engage in which of
the following activities correct answers provide account opening forms to a new customer
UTMA accounts are opened under the tax ID of the correct answers minor
all of the following risks apply to both foreign and domestic debt instruments except correct
answers exchange
Which of the following actions violates FINRA rules regarding selling away correct answers
engaging in private securities transactions without written prior consent of employed BD
Which of the following Form U4 reportable events results in a statutory disqualification correct
answers A felony conviction for a driving under the influence (DUI) charge
Under the Securities Act of 1933, registration is required for which of the following securities
correct answers American Depository Receipts (ADRs)
In the event of a stock split, which of the following parties is required to maintain a record of the
shareholders eligible to receive the additional shares correct answers Transfer agent
Which of the following represents the effect of a stock split correct answers The price per share
of common stock decreases
