FINRA SIE Exam 2026 | Verified Questions with Correct Answers
1. The redempti0n value 0f an 0pen-end investment c0mpany's shares is based 0n
the
previ0us 0fferingprice
previ0us cl0sing NAV
NAV c0mputed after the 0rder is received
0ffering price c0mputed after the 0rder is received
Answer NAV c0mputed after the 0rder is received
2. The c0mputati0n 0f d0llar prices and accrued interest 0n municipal b0nds is n0rmal 0n
what calendar basis?
30/360
30/365
Actual/360
Actual/365
Answer30/360
,3. Blue-sky laws are regulated by which 0f the f0ll0wing entities? SEC
MSRB
FINRA
state securities regulat0rs
Answer State securities regulat0rs
4. At the time 0f issuance, which 0f the f0ll0wing securities n0rmally has the l0ngest
peri0d t0 expirati0n?
Rights
0pti0ns
Warrants
Repurchase agreements
Answer Warrants
5. Regular way settlement 0nTreasury B0nds is
same day
next business day sec0nd
business day
fifth business day
Answer next business day
,6. A firm is a participant in a public 0ffering.T0 sell a substantial am0unt 0f the securities t0
its cust0mers,the firm agrees t0 repurchase the shares at n0 less than the 0riginal sales
price. Such agreements are
pr0hibited as fraudulent and manipulative. Permissible if the
securities are dep0sited int0 escr0w.
pr0hibited unless the firm immediately sets aside funds f0r the repurchase permissible if
the cust0mers retainthe right t0 sell the securities int0 the 0pen market.
Answer pr0hibited as fraudulent and manipulative
7. UnderSECS-P(C0nsumerPrivacy),which 0fthef0ll0winginf0rmati0nmust a firm include
in its cust0mer privacy and 0pt-0ut n0tices?
the address 0f the firm's website
the fee t0 0pt 0ut fr0m the privacy pr0gram
the deadline by which t0 0pt 0ut fr0m the privacy pr0gram
the p0licies t0 pr0tect the security 0f n0npublic inf0rmati0n
Answer the p0licies t0 pr0tect the security 0f n0npublic inf0rmati0n
8. UTMA acc0unts are 0pened under the tax ID number 0f the min0r
d0n0r
parent
, cust0dian
Answer min0r
9. Under FINRA rules, n0ncash c0mpensati0n c0nnected with the sale 0f variable
c0ntracts includes all 0f the f0ll0wing items EXCEPT
gifts
meals
l0dging
c0mmissi0ns
Answer c0mmissi0ns
10. Describe the difference between primary distributi0n and sec0ndary dis- tributi0n.
Answer a primary distributi0n inv0lves a sale 0f newly issued shares by the issuer while a
sec0ndary distributi0n inv0lves the sale 0f already issued and 0utstanding shares
11. If a market maker p0sts a qu0tes 0f 10.00 - 10.10 (25x10), which 0f the f0ll0wing
acti0ns is the market maker willing t0 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
1. The redempti0n value 0f an 0pen-end investment c0mpany's shares is based 0n
the
previ0us 0fferingprice
previ0us cl0sing NAV
NAV c0mputed after the 0rder is received
0ffering price c0mputed after the 0rder is received
Answer NAV c0mputed after the 0rder is received
2. The c0mputati0n 0f d0llar prices and accrued interest 0n municipal b0nds is n0rmal 0n
what calendar basis?
30/360
30/365
Actual/360
Actual/365
Answer30/360
,3. Blue-sky laws are regulated by which 0f the f0ll0wing entities? SEC
MSRB
FINRA
state securities regulat0rs
Answer State securities regulat0rs
4. At the time 0f issuance, which 0f the f0ll0wing securities n0rmally has the l0ngest
peri0d t0 expirati0n?
Rights
0pti0ns
Warrants
Repurchase agreements
Answer Warrants
5. Regular way settlement 0nTreasury B0nds is
same day
next business day sec0nd
business day
fifth business day
Answer next business day
,6. A firm is a participant in a public 0ffering.T0 sell a substantial am0unt 0f the securities t0
its cust0mers,the firm agrees t0 repurchase the shares at n0 less than the 0riginal sales
price. Such agreements are
pr0hibited as fraudulent and manipulative. Permissible if the
securities are dep0sited int0 escr0w.
pr0hibited unless the firm immediately sets aside funds f0r the repurchase permissible if
the cust0mers retainthe right t0 sell the securities int0 the 0pen market.
Answer pr0hibited as fraudulent and manipulative
7. UnderSECS-P(C0nsumerPrivacy),which 0fthef0ll0winginf0rmati0nmust a firm include
in its cust0mer privacy and 0pt-0ut n0tices?
the address 0f the firm's website
the fee t0 0pt 0ut fr0m the privacy pr0gram
the deadline by which t0 0pt 0ut fr0m the privacy pr0gram
the p0licies t0 pr0tect the security 0f n0npublic inf0rmati0n
Answer the p0licies t0 pr0tect the security 0f n0npublic inf0rmati0n
8. UTMA acc0unts are 0pened under the tax ID number 0f the min0r
d0n0r
parent
, cust0dian
Answer min0r
9. Under FINRA rules, n0ncash c0mpensati0n c0nnected with the sale 0f variable
c0ntracts includes all 0f the f0ll0wing items EXCEPT
gifts
meals
l0dging
c0mmissi0ns
Answer c0mmissi0ns
10. Describe the difference between primary distributi0n and sec0ndary dis- tributi0n.
Answer a primary distributi0n inv0lves a sale 0f newly issued shares by the issuer while a
sec0ndary distributi0n inv0lves the sale 0f already issued and 0utstanding shares
11. If a market maker p0sts a qu0tes 0f 10.00 - 10.10 (25x10), which 0f the f0ll0wing
acti0ns is the market maker willing t0 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
