SIE Practice Exam Question & Answers
(Latest update)
Which of the following statements is true regarding the concept of an
annuity contract?
a) Payouts of an investment in a nonqualified annuity are all income
tax-free
b) The kind of annuity selected partly determines the payment amounts
to the annuitant
c) In the case of life annuity contracts, the age and sex of the annuitant
do not affect the payment amounts
d) The amounts of the periodic payments to the annuitant are
determined by the performance of the insurance company's
investment returns - Correct Answers ✅b) The kind of annuity
selected partly determines the payment amounts to the annuitant
Which of the following Form U4 reportable events results in a statutory
disqualification?
a) A personal bankruptcy filing
b) A written customer complaint alleging misappropriation of assets
c) A felony theft charge
d) A felony conviction for a driving under the influence (DUI) charge -
Correct Answers ✅d) A felony conviction for a driving under the
influence (DUI) charge
,SIE Practice Exam Question & Answers
(Latest update)
Under SEC Regulation S-P (Consumer Privacy), which of the following
information must a firm include in its customer privacy and opt-out
notices?
a) The addresses of the firm's website
b) The fee and opt out from the privacy program
c) The deadline by which to out from the privacy program
d) The policies to protect the security of nonpublic information -
Correct Answers ✅d) The policies to protect the security of nonpublic
information
Under normal circumstances, a customer's letter of intent on a mutual
fund purchase is valid for what maximum period of time?
a) 3 months
b) 6 months
c) 13 months
d) 24 months - Correct Answers ✅c) 13 months
No-load mutual funds may have lower expense than load mutual funds
for which of the following reasons?
a) No-load funds do not charge 12b-1 fees
, SIE Practice Exam Question & Answers
(Latest update)
b) No-load funds are not permitted to charge a 12b-1 fee greater than
25 basis points
c) Sales charges for load mutual funds increase their annual expense
ratios
d) Fund management fees for no-load funds are always lower than load
funds - Correct Answers ✅b) No-load funds are not permitted to
charge a 12b-1 fee greater than 25 basis points
A customer is an officer of a company that is involved in some
significant changes. All of the following items are examples of corporate
affairs that could be considered inside information if the customer
shares them with his registered representative EXCEPT:
a) pending transactions
b) declared stock dividend
c) top management changes
d) imminent financial liquidity problems - Correct Answers ✅b)
declared stock dividends
To offer its shareholders a privilege to obtain its shares at a fixed price,
which of the following products does a corporation issue?
a) Puts
(Latest update)
Which of the following statements is true regarding the concept of an
annuity contract?
a) Payouts of an investment in a nonqualified annuity are all income
tax-free
b) The kind of annuity selected partly determines the payment amounts
to the annuitant
c) In the case of life annuity contracts, the age and sex of the annuitant
do not affect the payment amounts
d) The amounts of the periodic payments to the annuitant are
determined by the performance of the insurance company's
investment returns - Correct Answers ✅b) The kind of annuity
selected partly determines the payment amounts to the annuitant
Which of the following Form U4 reportable events results in a statutory
disqualification?
a) A personal bankruptcy filing
b) A written customer complaint alleging misappropriation of assets
c) A felony theft charge
d) A felony conviction for a driving under the influence (DUI) charge -
Correct Answers ✅d) A felony conviction for a driving under the
influence (DUI) charge
,SIE Practice Exam Question & Answers
(Latest update)
Under SEC Regulation S-P (Consumer Privacy), which of the following
information must a firm include in its customer privacy and opt-out
notices?
a) The addresses of the firm's website
b) The fee and opt out from the privacy program
c) The deadline by which to out from the privacy program
d) The policies to protect the security of nonpublic information -
Correct Answers ✅d) The policies to protect the security of nonpublic
information
Under normal circumstances, a customer's letter of intent on a mutual
fund purchase is valid for what maximum period of time?
a) 3 months
b) 6 months
c) 13 months
d) 24 months - Correct Answers ✅c) 13 months
No-load mutual funds may have lower expense than load mutual funds
for which of the following reasons?
a) No-load funds do not charge 12b-1 fees
, SIE Practice Exam Question & Answers
(Latest update)
b) No-load funds are not permitted to charge a 12b-1 fee greater than
25 basis points
c) Sales charges for load mutual funds increase their annual expense
ratios
d) Fund management fees for no-load funds are always lower than load
funds - Correct Answers ✅b) No-load funds are not permitted to
charge a 12b-1 fee greater than 25 basis points
A customer is an officer of a company that is involved in some
significant changes. All of the following items are examples of corporate
affairs that could be considered inside information if the customer
shares them with his registered representative EXCEPT:
a) pending transactions
b) declared stock dividend
c) top management changes
d) imminent financial liquidity problems - Correct Answers ✅b)
declared stock dividends
To offer its shareholders a privilege to obtain its shares at a fixed price,
which of the following products does a corporation issue?
a) Puts
