FINRA SIE FINAL STUDY NEWEST UPDATE 2025
CERTIFIED QUESTIONS WITH ANSWER GUIDE
The primary purpose of a syndicate desk in the context of an equity offering is to:
A. determine the list of selling shareholders
B. build an order book and allocate the stock
C. solicit interest from investors in the stock offering
D. chaperone company management during the road show - ANSWER-B
In a period of low inflation and economic recession, the Federal Reserve is expected to take which of
the following actions?
A. decrease taxes
B. raise the federal funds rate
C. buy bonds in the open market
D. require banks to increase reserves - ANSWER-C
Which of the following communications with the public is considered misleading?
A. historical illustrations based on factual performance
B. product comparisons that illustrate material differences
C. a research report that includes a buy recommendation for a specific security
D. literature providing 10-year performance information to support predictions of future
performance - ANSWER-D
Under the Securities Act of 1933, registration is required for which of the following securities?
,A. eurodollar bonds
B. municipal securities
C. American depositary receipts (adrs)
D. securities issued by the federal government - ANSWER-C
A savings account at a bank is guaranteed by which of the following entities?
A. FDIC
B. SIPC
C. Federal Reserve
D. Department of Treasury - ANSWER-A
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following
products does a corporate issue?
A. puts
B. rights
C. futures
D. preferred stock - ANSWER-B
A registered representative (RR) wants to participate in a private securities transaction. Which of the
following actions must the RR take?
A. request a meeting with his supervisor to lay out the structure of the deal
B. call his supervisor and inform her of the deal and the RR's potential involvement
C. send written notice to his supervisor outlining the activity and compensation structure
D. initiate the paperwork required by the policies of the firm once the activity has begun - ANSWER-
C
Under industry regulations, an initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of:
, A. $750
B. $1,500
C. $2,000
D. $3,000 - ANSWER-C
Which of the following statements is true about treasury stock?
A. it has voting rights
B. it receives dividends
C. it is issued stock that has been subsequently reacquired by the corporation
D. it is authorized stock that has not been issued and is held in the corporation's treasury - ANSWER-
C
Which of the following outcomes are possible for the writer of a covered call option?
A. profit limited and loss limited
B. profit limited and loss unlimited
C. profit unlimited and loss limited
D. profit unlimited and loss unlimited - ANSWER-A
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
A. 30/360
B. 30/365
C. actual/360
D. actual/365 - ANSWER-A
A registered representative is reviewing the following portfolio:
-30% ABC energy company
-30% XYZ health care company
CERTIFIED QUESTIONS WITH ANSWER GUIDE
The primary purpose of a syndicate desk in the context of an equity offering is to:
A. determine the list of selling shareholders
B. build an order book and allocate the stock
C. solicit interest from investors in the stock offering
D. chaperone company management during the road show - ANSWER-B
In a period of low inflation and economic recession, the Federal Reserve is expected to take which of
the following actions?
A. decrease taxes
B. raise the federal funds rate
C. buy bonds in the open market
D. require banks to increase reserves - ANSWER-C
Which of the following communications with the public is considered misleading?
A. historical illustrations based on factual performance
B. product comparisons that illustrate material differences
C. a research report that includes a buy recommendation for a specific security
D. literature providing 10-year performance information to support predictions of future
performance - ANSWER-D
Under the Securities Act of 1933, registration is required for which of the following securities?
,A. eurodollar bonds
B. municipal securities
C. American depositary receipts (adrs)
D. securities issued by the federal government - ANSWER-C
A savings account at a bank is guaranteed by which of the following entities?
A. FDIC
B. SIPC
C. Federal Reserve
D. Department of Treasury - ANSWER-A
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following
products does a corporate issue?
A. puts
B. rights
C. futures
D. preferred stock - ANSWER-B
A registered representative (RR) wants to participate in a private securities transaction. Which of the
following actions must the RR take?
A. request a meeting with his supervisor to lay out the structure of the deal
B. call his supervisor and inform her of the deal and the RR's potential involvement
C. send written notice to his supervisor outlining the activity and compensation structure
D. initiate the paperwork required by the policies of the firm once the activity has begun - ANSWER-
C
Under industry regulations, an initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of:
, A. $750
B. $1,500
C. $2,000
D. $3,000 - ANSWER-C
Which of the following statements is true about treasury stock?
A. it has voting rights
B. it receives dividends
C. it is issued stock that has been subsequently reacquired by the corporation
D. it is authorized stock that has not been issued and is held in the corporation's treasury - ANSWER-
C
Which of the following outcomes are possible for the writer of a covered call option?
A. profit limited and loss limited
B. profit limited and loss unlimited
C. profit unlimited and loss limited
D. profit unlimited and loss unlimited - ANSWER-A
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
A. 30/360
B. 30/365
C. actual/360
D. actual/365 - ANSWER-A
A registered representative is reviewing the following portfolio:
-30% ABC energy company
-30% XYZ health care company
