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Exam (elaborations)

SIE EXAM FINRA EXAMPLE QUESTIONS WITH COMPLETE ANSWERS

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SIE EXAM FINRA EXAMPLE QUESTIONS WITH COMPLETE ANSWERS

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Uploaded on
August 4, 2025
Number of pages
21
Written in
2025/2026
Type
Exam (elaborations)
Contains
Questions & answers

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Which of the following statements is true about treasury stock


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It is issued stock that has been subsequently reacquired by the corporation




Which of the following comparisons best describes the essential difference between
a primary distribution and a secondary distribution

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A primary distribution involves a sale of newly issued shares by the issuer
while a secondary distribution involved the sale of already issued and
outstanding shares




In the over-the-counter market, the term "spread" refers to the difference between
the:


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bid and asked prices




A member of a stock exchange responsible for providing liquidity is a security by
being willing to buy and sell at all times is known as:


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A Market Maker




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


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Transfer agent

, Which of the following responses describes the advantage of index funds


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Lower management fees due to passive management for the fund




At the time of issuance, which of the following securities normally has the longest
period to expiration


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Warrants




Under normal circumstances,a customer's letter of intent on a mutual fund purchase is
valid for maximum period of time


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13




Stability in the value of a debt portfolio is greatest when:


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maturities of the debt securities are short

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