SIE Exam-Questions with Correct Answers/ Verified/ 100% Pass
A broker-dealer must establish info barriers between two departments?
a. Research & Compliance
b. Retail & Institutional Sales
c. HR & Retail Sales
d. Investment Banking. & Trading - ✔️✔️d. Investment Banking. & Trading
A registered representative persuades a customer to purchase a security by assuring her that, should
it fall in value, the representative will make up the difference in the account. This practice is:
a. Permitted if the arrangement is in writing and preapproved by the firm
b. Permitted if the customer maintains an outside business relationship with the rep
c. Permitted if the customer is an immediate family member
d. Not permitted - ✔️✔️d. Not permitted
A company has announced a tender offer for its shares at $50. The issuer wants to purchase a
minimum of 100,000 shares, up to a maximum of 1,000,000 shares. If 80,000 shares are tendered,
how much will an investor receive if he has tendered 1,000 shares?
a. $0
b. $50,000
c. $40,000
d. $4,000 - ✔️✔️$0
An investor in a mutual fund:
a. Owns the actual securities in the portfolio
b. Owns shares which represent an interest in the portfolio
c. Is considered a creditor of the portfolio
d. Is considered a limited partner in the fund - ✔️✔️b. Owns shares which represent an interest in
the portfolio
A covered call writer can be described as being:
a. Short the call, and short the stock
b. Short the call, and long the stock
,c. Long the call, and short the stock
d. Long the call, and long the stock - ✔️✔️b. Short the call, and long the stock
Which of the following persons can a registered representative either make a loan to or borrow
money from without providing notification to her employer?
a. Another employee of an affiliated broker-dealer
b. An institution that's in the business of borrowing or lending funds
c. An individual with whom the RR maintains a personal relationship
d. A company with which the RR has a business relationship - ✔️✔️b. An institution that's in the
business of borrowing or lending funds
Government-sponsored enterprise securities are comparable to direct government obligations with
regard to all of the following statements, EXCEPT:
a. They trade in the OTC market
b. All are government guaranteed
c. Short-term securities are quoted on a discount yield
d. Long-term securities are quoted as a percentage of par - ✔️✔️b. All are government guaranteed
A 5% $1,000 par value bond sells at $900 and matures in 10 years. What is the amount of each
interest payment?
a. $25
b. $45
c. $50
d. $90 - ✔️✔️a. $25
A Treasury bond is quoted 105.04 - 105.24. The purchase price that a customer would expect to pay
would be:
a. $1,051.25
b. $1,052.40
c. $1,054.00
d. $1,057.50 - ✔️✔️d. $1,057.50
,If a market maker has a current quote of 50.00 - 50.05 (15 x 20), this indicates that the firm is willing
to:
a. Sell 200 shares at $50.00 and buy 150 shares at $50.05
b. Buy 150 shares at $50.00 and sell 200 shares at $50.05
c. Sell 1,500 shares at $50.00 and buy 2,000 shares at $50.05
d. Buy 1,500 shares at $50.00 and sell 2,000 shares at $50.05 - ✔️✔️d. Buy 1,500 shares at $50.00
and sell 2,000 shares at $50.05
An investor purchases a 20-year 5.30% bond at par value that will yield 5.75% if called at the first call
date in five years. The yield to maturity on the bond is:
a. 5.30%
b. More than 5.30%
c. Between 5.30% and 5.75%
d. 5.75% - ✔️✔️a. 5.30%
A registered representative has recently passed the Series 7 Examination. If the RR conducts
business in five states, she is required to:
a. Register in three of the five states
b. Notify FINRA, but not required to register in any of the states
c. Register in the states in which she has an office
d. Register in all five states - ✔️✔️d. Register in all five states
Who is responsible for creating the official statement for a municipal bond offering?
a. The issuer
b. Bond counsel for the issuer
c. The underwriter syndicate
d. Bond counsel for the underwriting syndicate - ✔️✔️a. The issuer
Regulation T requires payment from a customer in how many days?
a. By settlement date
b. One business day following regular-way settlement
c. Two business days following regular-way settlement
, d. Three business days following regular-way settlement - ✔️✔️c. Two business days following
regular-way settlement
A corporation will be paying a cash dividend to its shareholders. On what date will the market price
of the stock be reduced?
a. Declared date
b. Ex-date
c. Record date
d. Payment date - ✔️✔️b. Ex-date
Which of the following securities would be subject to federal securities registration requirements?
a. Securities offered through a private placement
b. GNMA securities
c. Municipal bonds
d. Mutual fund shares - ✔️✔️d. Mutual fund shares
A registered representative is sending an email to five clients. Which of the following statements is
TRUE?
a. It is considered correspondence and subject to review by a principal
b. It is considered correspondence and subject to pre-approval by a principal
c. It is considered retail communication and subject to review by a principal
d. It is considered retail communication and subject to pre-approval by a principal - ✔️✔️a. It is
considered correspondence and subject to review by a principal
Which of the following risks does not apply to both foreign and domestic debt instruments?
a. Political
b. Repayment
c. Exchange
d. Interest rate - ✔️✔️c. Exchange
Which of the following statements BEST describes exchange-traded notes (ETNs)?
a. ETNs are debt instruments linked to the performance of a commodity, currency, or index
A broker-dealer must establish info barriers between two departments?
a. Research & Compliance
b. Retail & Institutional Sales
c. HR & Retail Sales
d. Investment Banking. & Trading - ✔️✔️d. Investment Banking. & Trading
A registered representative persuades a customer to purchase a security by assuring her that, should
it fall in value, the representative will make up the difference in the account. This practice is:
a. Permitted if the arrangement is in writing and preapproved by the firm
b. Permitted if the customer maintains an outside business relationship with the rep
c. Permitted if the customer is an immediate family member
d. Not permitted - ✔️✔️d. Not permitted
A company has announced a tender offer for its shares at $50. The issuer wants to purchase a
minimum of 100,000 shares, up to a maximum of 1,000,000 shares. If 80,000 shares are tendered,
how much will an investor receive if he has tendered 1,000 shares?
a. $0
b. $50,000
c. $40,000
d. $4,000 - ✔️✔️$0
An investor in a mutual fund:
a. Owns the actual securities in the portfolio
b. Owns shares which represent an interest in the portfolio
c. Is considered a creditor of the portfolio
d. Is considered a limited partner in the fund - ✔️✔️b. Owns shares which represent an interest in
the portfolio
A covered call writer can be described as being:
a. Short the call, and short the stock
b. Short the call, and long the stock
,c. Long the call, and short the stock
d. Long the call, and long the stock - ✔️✔️b. Short the call, and long the stock
Which of the following persons can a registered representative either make a loan to or borrow
money from without providing notification to her employer?
a. Another employee of an affiliated broker-dealer
b. An institution that's in the business of borrowing or lending funds
c. An individual with whom the RR maintains a personal relationship
d. A company with which the RR has a business relationship - ✔️✔️b. An institution that's in the
business of borrowing or lending funds
Government-sponsored enterprise securities are comparable to direct government obligations with
regard to all of the following statements, EXCEPT:
a. They trade in the OTC market
b. All are government guaranteed
c. Short-term securities are quoted on a discount yield
d. Long-term securities are quoted as a percentage of par - ✔️✔️b. All are government guaranteed
A 5% $1,000 par value bond sells at $900 and matures in 10 years. What is the amount of each
interest payment?
a. $25
b. $45
c. $50
d. $90 - ✔️✔️a. $25
A Treasury bond is quoted 105.04 - 105.24. The purchase price that a customer would expect to pay
would be:
a. $1,051.25
b. $1,052.40
c. $1,054.00
d. $1,057.50 - ✔️✔️d. $1,057.50
,If a market maker has a current quote of 50.00 - 50.05 (15 x 20), this indicates that the firm is willing
to:
a. Sell 200 shares at $50.00 and buy 150 shares at $50.05
b. Buy 150 shares at $50.00 and sell 200 shares at $50.05
c. Sell 1,500 shares at $50.00 and buy 2,000 shares at $50.05
d. Buy 1,500 shares at $50.00 and sell 2,000 shares at $50.05 - ✔️✔️d. Buy 1,500 shares at $50.00
and sell 2,000 shares at $50.05
An investor purchases a 20-year 5.30% bond at par value that will yield 5.75% if called at the first call
date in five years. The yield to maturity on the bond is:
a. 5.30%
b. More than 5.30%
c. Between 5.30% and 5.75%
d. 5.75% - ✔️✔️a. 5.30%
A registered representative has recently passed the Series 7 Examination. If the RR conducts
business in five states, she is required to:
a. Register in three of the five states
b. Notify FINRA, but not required to register in any of the states
c. Register in the states in which she has an office
d. Register in all five states - ✔️✔️d. Register in all five states
Who is responsible for creating the official statement for a municipal bond offering?
a. The issuer
b. Bond counsel for the issuer
c. The underwriter syndicate
d. Bond counsel for the underwriting syndicate - ✔️✔️a. The issuer
Regulation T requires payment from a customer in how many days?
a. By settlement date
b. One business day following regular-way settlement
c. Two business days following regular-way settlement
, d. Three business days following regular-way settlement - ✔️✔️c. Two business days following
regular-way settlement
A corporation will be paying a cash dividend to its shareholders. On what date will the market price
of the stock be reduced?
a. Declared date
b. Ex-date
c. Record date
d. Payment date - ✔️✔️b. Ex-date
Which of the following securities would be subject to federal securities registration requirements?
a. Securities offered through a private placement
b. GNMA securities
c. Municipal bonds
d. Mutual fund shares - ✔️✔️d. Mutual fund shares
A registered representative is sending an email to five clients. Which of the following statements is
TRUE?
a. It is considered correspondence and subject to review by a principal
b. It is considered correspondence and subject to pre-approval by a principal
c. It is considered retail communication and subject to review by a principal
d. It is considered retail communication and subject to pre-approval by a principal - ✔️✔️a. It is
considered correspondence and subject to review by a principal
Which of the following risks does not apply to both foreign and domestic debt instruments?
a. Political
b. Repayment
c. Exchange
d. Interest rate - ✔️✔️c. Exchange
Which of the following statements BEST describes exchange-traded notes (ETNs)?
a. ETNs are debt instruments linked to the performance of a commodity, currency, or index
