FINRA Practice SIE Exam 73 Questions with Verified
Answers
The redemption value of an open-end investment company's shares is based on
the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - CORRECT ANSWER NAV
computed after the order is received
The computation of dollar prices and accrued interest on municipal bonds is
normal on what calendar basis?
30/360
30/365
Actual/360
Actual/365 - CORRECT ANSWER 30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - CORRECT ANSWER State securities regulators
At the time of issuance, which of the following securities normally has the longest
period to expiration?
Rights
Options
Warrants
Repurchase agreements - CORRECT ANSWER Warrants
Regular way settlement on Treasury Bonds is:
same day
next business day
, second business day
fifth business day - CORRECT ANSWER next business day
A firm is a participant in a public offering. To sell a substantial amount of the
securities to its customers, the firm agrees to repurchase the shares at no less
than the original sales price. Such agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately sets aside funds for the repurchase
permissible if the customers retain the right to sell the securities into the open
market. - CORRECT ANSWER prohibited as fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following information must a firm
include in its customer privacy and opt-out notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
the policies to protect the security of nonpublic information - CORRECT ANSWER
the policies to protect the security of nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
parent
custodian - CORRECT ANSWER minor
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items EXCEPT:
gifts
meals
lodging
commissions - CORRECT ANSWER commissions
Describe the difference between primary distribution and secondary distribution.
- CORRECT ANSWER 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
Answers
The redemption value of an open-end investment company's shares is based on
the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - CORRECT ANSWER NAV
computed after the order is received
The computation of dollar prices and accrued interest on municipal bonds is
normal on what calendar basis?
30/360
30/365
Actual/360
Actual/365 - CORRECT ANSWER 30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - CORRECT ANSWER State securities regulators
At the time of issuance, which of the following securities normally has the longest
period to expiration?
Rights
Options
Warrants
Repurchase agreements - CORRECT ANSWER Warrants
Regular way settlement on Treasury Bonds is:
same day
next business day
, second business day
fifth business day - CORRECT ANSWER next business day
A firm is a participant in a public offering. To sell a substantial amount of the
securities to its customers, the firm agrees to repurchase the shares at no less
than the original sales price. Such agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately sets aside funds for the repurchase
permissible if the customers retain the right to sell the securities into the open
market. - CORRECT ANSWER prohibited as fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following information must a firm
include in its customer privacy and opt-out notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
the policies to protect the security of nonpublic information - CORRECT ANSWER
the policies to protect the security of nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
parent
custodian - CORRECT ANSWER minor
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items EXCEPT:
gifts
meals
lodging
commissions - CORRECT ANSWER commissions
Describe the difference between primary distribution and secondary distribution.
- CORRECT ANSWER 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
