FINRA Practice SIE Exam Questions With Correct Answers.

FINRA Practice SIE Exam Questions With
Correct Answers

The |redemption |value |of |an |open-end |investment |company's |shares |is |based |on |the:

previous |offering |price

previous |closing |NAV

NAV |computed |after |the |order |is |received

offering |price |computed |after |the |order |is |received |- |CORRECT |ANSWER✔✔-NAV |computed |
after |the |order |is |received



The |computation |of |dollar |prices |and |accrued |interest |on |municipal |bonds |is |normal |on |what |
calendar |basis?

30/360

30/365

Actual/360

Actual/365 |- |CORRECT |ANSWER✔✔-30/360



Blue-sky |laws |are |regulated |by |which |of |the |following |entities?

SEC

MSRB

FINRA

state |securities |regulators |- |CORRECT |ANSWER✔✔-State |securities |regulators



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

,Rights

Options

Warrants

Repurchase |agreements |- |CORRECT |ANSWER✔✔-Warrants



Regular |way |settlement |on |Treasury |Bonds |is:

same |day

next |business |day

second |business |day

fifth |business |day |- |CORRECT |ANSWER✔✔-next |business |day



A |firm |is |a |participant |in |a |public |offering. |To |sell |a |substantial |amount |of |the |securities |to |its |
customers, |the |firm |agrees |to |repurchase |the |shares |at |no |less |than |the |original |sales |price. |
Such |agreements |are:

prohibited |as |fraudulent |and |manipulative. |

Permissible |if |the |securities |are |deposited |into |escrow. |

prohibited |unless |the |firm |immediately |sets |aside |funds |for |the |repurchase

permissible |if |the |customers |retain |the |right |to |sell |the |securities |into |the |open |market. |- |
CORRECT |ANSWER✔✔-prohibited |as |fraudulent |and |manipulative



Under |SEC |S-P |(Consumer |Privacy), |which |of |the |following |information |must |a |firm |include |in |
its |customer |privacy |and |opt-out |notices?

the |address |of |the |firm's |website

the |fee |to |opt |out |from |the |privacy |program

the |deadline |by |which |to |opt |out |from |the |privacy |program

the |policies |to |protect |the |security |of |nonpublic |information |- |CORRECT |ANSWER✔✔-the |
policies |to |protect |the |security |of |nonpublic |information

, UTMA |accounts |are |opened |under |the |tax |ID |number |of |the:

minor

donor

parent

custodian |- |CORRECT |ANSWER✔✔-minor



Under |FINRA |rules, |noncash |compensation |connected |with |the |sale |of |variable |contracts |
includes |all |of |the |following |items |EXCEPT:

gifts

meals

lodging |

commissions |- |CORRECT |ANSWER✔✔-commissions



Describe |the |difference |between |primary |distribution |and |secondary |distribution. |- |CORRECT |
ANSWER✔✔-a |primary |distribution |involves |a |sale |of |newly |issued |shares |by |the |issuer |while |
a |secondary |distribution |involves |the |sale |of |already |issued |and |outstanding |shares



If |a |market |maker |posts |a |quotes |of |10.00 |- |10.10 |(25x10), |which |of |the |following |actions |is |
the |market |maker |willing |to |take?

sell |1,000 |shares |at |$10 |and |buy |2,500 |shares |at |$10.10

buy |2,500 |shares |at |$10 |and |sell |1,000 |shares |at |$10.10

sell |100 |shares |at |$10 |and |buy |250 |shares |at |$10.10

buy |250 |shares |at |$10 |and |sell |100 |shares |at |$10.10 |- |CORRECT |ANSWER✔✔-buy |2,500 |shares
|at |$10 |and |sell |1,000 |shares |at |$10.10




All |of |the |following |risks |apply |to |both |foreign |and |domestic |debt |instruments |EXCEPT:

political

exchange