FINRA SIE Practice Test and Answer 2026

FINRA SIE Practice Test and Answer 2026
UponAExpiration,AallAin-the-
moneyAS&PA100AIndexAcallAoptionsAareAsettledAbyAtheAdeliveryAofAwhichAofAtheAfollowing?A-
ACORRECTAANSWERSA-Cash

WhichAofAtheAfollowingAstatementsAisAtrueAaboutAtreasuryAstock?A-
ACORRECTAANSWERSA-

ItAisAissuedAstockAthatAhasAbeenAsubsequentlyAreacquiredAbyAtheAcorporation
InAtheAeventAofAaAstockAsplit,AwhichAofAtheAfollowingApartiesAisArequiredAtoAmaintainAaArecor
dAofAtheAshareholdersAeligibleAtoAreceiveAtheAadditionalAshares?A-
ACORRECTAANSWERSA-TransferAAgent

WhichAofAtheAfollowingAactionsAisArequiredAofAaAbroker-dealer'sAanti-
moneyAlaunderingA(AML)Aprogram?A-ACORRECTAANSWERSA-
DesignatingAanAAMLAcomplianceAofficer
AAregisteredArepresentativeA(RR)AwantsAtoAparticipateAinAaAprivateAsecuritiesAtransaction.A
WhichAofAtheAfollowingAactionsAmustAtheARRAtake?A-ACORRECTAANSWERSA-
SendAwrittenAnoticeAtoAhisAsupervisorAoutliningAtheAactivityAandAcompensationAstructure
AAcustomerABUYSAaA1AABCAJanA35APUTAforAaApremiumAofA$3AandAsimultaneouslyAbuysA1
00AsharesAofAABCAstockAforA$35AperAshare.ATheAcustomerAwillAbreakAevenAwhenAtheAstock
AisAsellingAatAwhatApriceAperAshareAatAexpiration?A-ACORRECTAANSWERSA-$38

TheAcallAprovisionAofAaAbondAstipulatesAwhichAofAtheAfollowingAfactors?A-
ACORRECTAANSWERSA-CallAdateAandAcallAprice

WhenAisAinterestAonATreasuryAnotesApaid?A-ACORRECTAANSWERSA-Semiannually
TheAownerAofAwhichAofAtheAfollowingAproductsAisAMOSTAexposedAtoAinflationaryArisk?A-
ACORRECTAANSWERSA-TreasuryAbondsA(becauseAit'sAlong-term)

AAregisteredArepresentativeA(RR)AwhoAwantsAtoAplaceAaAmutualAfundAadvertisementAmustA
obtainAwrittenAapprovalAfromAwhichAofAtheAfollowingAparties?A-ACORRECTAANSWERSA-
AAregisteredAprincipalAofAtheARR'sAfirm
AAcompanyAannouncesAaAtenderAofferAtoAitsAshareholdersAwithAtheAintentAtoAbuyAaAmaximu
mAofA1AmillionAsharesAofAitsAoutstandingAstockAatA$10AperAshareAandAsetsAnoAminimumAnu
mberAofAsharesAtoAbeApurchased.AAnAinvestorAwantsAtoAparticipateAinAthisAofferAandAtender
sAhisA1,000AshareAposition.AAtAtheAcloseAofAtheAofferAperiod,AonlyA900,000AsharesAhaveAbe
enAtendered.AHowAmany,AifAany,AofAtheAinvestor'sAsharesAwillAtheAcompanyApurchase?A-
ACORRECTAANSWERSA-1,000A(1,000AxA100A=A100,000Ashares;A1AmillionA-A900kA=A100k)

Broker-
dealerAABCAseeksAtoAunderwriteAaAmunicipalAsecuritiesAofferingAbyAaAlocalAtownAinAwhichAt
heAmayorAisAcurrentlyAseekingAre-
election.AAAmunicipalAfinanceAprofessionalAwhoAresidesAinAtheAtownAandAworksAforAABCAc
ontributedA$200AtoAtheAmayor'sAre-
electionAcampaignA13AmonthsAago.AIfAtheAemployeeAwantsAtoAsupportAtheAcampaignAfurth
erAwithoutAimpactingAtheAmunicipalAsecuritiesAbusinessAofAtheAfirm,AheAisApermittedAtoAmak
eAanAadditionalAcontributionAofAupAtoAwhatAamount?A-ACORRECTAANSWERSA-
$50A($250AisAtheAlimitAPERAelection)

, WhichAofAtheAfollowingAstakeholdersAhasAfirstAclaimApriorityAinAaAChapterA11Aproceeding?A-
ACORRECTAANSWERSA-SecuredAdebtAholders




[OrderAofAliquidationAatAbankruptcy:
1.AUnpaidAwages
2.ATaxesA(IRS)
3.ASecuredAclaimsA(mortgages)
4.ASecuredAliabilitiesA(bonds)
5.AUnsecuredAliabilitiesA(debentures)AandAgeneralAcreditors
6.ASubordinatedAdebt
7.APreferredAStockholders
8.ACommonAstockholders]
AnAinvestorsAownsA100AsharesAofAXYZAcommonAstockAatAtheAcurrentAmarketApriceAofA$50A
perAshare.AIfAXYZAconductsAaA1-for-2AREVERSEAstockAsplit,AtheAinvestor'sApost-
splitAstockApositionAwillAbe:A-ACORRECTAANSWERSA-50AsharesAatA$100AperAshare
TheAprimaryApurposeAofAaAsyndicateAdeskAinAtheAcontextAofAanAequityAofferingAisAto:A-
ACORRECTAANSWERSA-buildAanAorderAbookAandAallocateAtheAstock

WhichAofAtheAfollowingAinvestmentsAareAgenerallyAtradedAaccordingAtoAtheirAaverageAlifeAr
atherAthanAtheirAstatedAmaturityAdates?A-ACORRECTAANSWERSA-Asset-
backedAsecurities
UTMAA(Minor)AaccountsAareAopenedAunderAtheAtaxAIDAofAthe:A-ACORRECTAANSWERSA-
minor
StabilityAinAtheAvalueAofAdebtAportfolioAisAgreatestAwhen:A-ACORRECTAANSWERSA-
maturitiesAofAtheAdebtAsecuritiesAareAshort
WhichAofAtheAfollowingAstatementsAisAtrueAaboutAallAU.S.AgovernmentAagencyAissues?A-
ACORRECTAANSWERSA-

TheyAareAexemptAfromAregistrationAunderAtheASecuritiesAActAofA1933
WhichAofAtheAfollowingAproductsAisAadverselyAimpactedAifAtheAissuer'sAcreditAratingAisAdown
graded?A-ACORRECTAANSWERSA-Exchange-tradedAnotesA(ETNs)
CompanyAABCAannouncesAaA20%AstockAdividendAforAitsAcommonAshareholders.AIfAaAcust
omerAholdsA1,000AsharesAatA$50.00,AwhatAisAtheAnewApriceAandAnumberAofAsharesAfollowin
gAtheApaymentAofAtheAstockAdividend?A-ACORRECTAANSWERSA-
1,200AsharesAatA$41.67A(20%AincreaseAinAnumberAofAstockABUTAmarketAcapAremainsAtheA
same)
AAmarriedAcoupleAwhoAearnedAincomeAthatAexceededA$300,000AinAeachAofAtheApriorAtwoAy
earsAadAreasonablyAexpectsAtheAsameAforAtheAcurrentAyearAis:A-ACORRECTAANSWERSA-
anAaccreditedAinvestor
WhichAofAtheAfollowingAstatementsAisAtrueAregardingAtheAconceptAofAanAannuityAcontract?A-
ACORRECTAANSWERSA-

TheAkindAofAannuityAselectedApartlyAdeterminesAtheApaymentAamountsAtoAtheAannuitant.
RothA401(k)AandARothAIRAAindividualAretirementAaccountA(IRA)AplansAareAshareAwhichAofAt
heAfollowingAfeatures?A-ACORRECTAANSWERSA-
QualifiedAdistributionsAareAexcludedAfromAfederalAincomeAtax
UnderAnormalAcircumstances,AaAcustomer'sAletterAofAintentAonAaAmutualAfundApurchaseAisA
validAforAwhatAmaximumAperiodAofAtime?A-ACORRECTAANSWERSA-13Amonths