SIE PRACTICE EXAM QUESTIONS AND
DETAILED ANSWERS. EXPERT
VERIFIED FOR GUARANTEED PASS.
Which corporate voting procedures entitles a shareholder to one vote per share, and votes
must be divided evenly among the candidates being voted on? - ANS Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-counter market?
These trades allow institutional investors to trade blocks of securities directly, rather than
through an exchange, providing liquidity and anonymity to buyers. - ANS Third market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding the
investors position? - ANS The investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of the
securities industry? - ANS Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the professional
backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors? -
ANS BrokerCheck
The Federal Reserve Board performs what actions? - ANS It sets monetary policy, but does
not set tax policy
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, An offering of shares to existing stockholders on a pro-rata basis is called a - ANS Rights
offering
The difference between a bond's price and the conversion parity price is referred to as -
ANS conversion premium
An individual who meets what criteria must register as an investment adviser? - ANS The
individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to the
normally specified rate, as well as an additional dividend based on a specific predetermined
condition is called a - ANS participating preferred stock
Profit sharing plans have what characteristic? - ANS they can be invested entirely in company
stock
What is true regarding the Central Registration Depository (CRD)? - ANS It was developed by
NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a single,
nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms?
They operate both manually and electronically to facilitate price discovery during market
opens, closes, and during periods of trading imbalances and instability. - ANS Designated
Market Makers
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
DETAILED ANSWERS. EXPERT
VERIFIED FOR GUARANTEED PASS.
Which corporate voting procedures entitles a shareholder to one vote per share, and votes
must be divided evenly among the candidates being voted on? - ANS Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-counter market?
These trades allow institutional investors to trade blocks of securities directly, rather than
through an exchange, providing liquidity and anonymity to buyers. - ANS Third market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding the
investors position? - ANS The investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of the
securities industry? - ANS Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the professional
backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors? -
ANS BrokerCheck
The Federal Reserve Board performs what actions? - ANS It sets monetary policy, but does
not set tax policy
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, An offering of shares to existing stockholders on a pro-rata basis is called a - ANS Rights
offering
The difference between a bond's price and the conversion parity price is referred to as -
ANS conversion premium
An individual who meets what criteria must register as an investment adviser? - ANS The
individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to the
normally specified rate, as well as an additional dividend based on a specific predetermined
condition is called a - ANS participating preferred stock
Profit sharing plans have what characteristic? - ANS they can be invested entirely in company
stock
What is true regarding the Central Registration Depository (CRD)? - ANS It was developed by
NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a single,
nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms?
They operate both manually and electronically to facilitate price discovery during market
opens, closes, and during periods of trading imbalances and instability. - ANS Designated
Market Makers
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
