FINRA Website SIE Practice Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Which security represents ownership in a corporation?
A) Bond
✔✔B) Common stock
C) Treasury bill
D) Certificate of deposit
Which type of risk affects the entire market?
✔✔A) Systematic risk
B) Business risk
C) Liquidity risk
D) Credit risk
What does a bondholder receive in exchange for purchasing a bond?
A) Voting rights
✔✔B) Periodic interest payments
C) Ownership interest
D) Dividend guarantees
Which organization issues Treasury securities?
1
,A) FINRA
B) Federal Reserve
✔✔C) U.S. Department of the Treasury
D) SEC
A mutual fund price is calculated as:
✔✔A) Net asset value
B) Market capitalization
C) Dividend yield
D) Par value
Which order guarantees execution but not price?
✔✔A) Market order
B) Limit order
C) Stop order
D) Stop-limit order
What does diversification aim to reduce?
✔✔A) Unsystematic risk
B) Systematic risk
C) Inflation risk
D) Interest rate risk
2
, Which investment typically has the highest risk?
A) Treasury bonds
B) Money market funds
✔✔C) Common stock
D) Certificates of deposit
Which market involves the trading of existing securities?
✔✔A) Secondary market
B) Primary market
C) Capital market
D) Money market
What is a prospectus primarily used for?
A) Advertising securities
✔✔B) Disclosing investment risks and details
C) Calculating commissions
D) Approving trades
Which security has a fixed maturity date?
A) Common stock
✔✔B) Corporate bond
C) Preferred stock
D) Mutual fund
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Which security represents ownership in a corporation?
A) Bond
✔✔B) Common stock
C) Treasury bill
D) Certificate of deposit
Which type of risk affects the entire market?
✔✔A) Systematic risk
B) Business risk
C) Liquidity risk
D) Credit risk
What does a bondholder receive in exchange for purchasing a bond?
A) Voting rights
✔✔B) Periodic interest payments
C) Ownership interest
D) Dividend guarantees
Which organization issues Treasury securities?
1
,A) FINRA
B) Federal Reserve
✔✔C) U.S. Department of the Treasury
D) SEC
A mutual fund price is calculated as:
✔✔A) Net asset value
B) Market capitalization
C) Dividend yield
D) Par value
Which order guarantees execution but not price?
✔✔A) Market order
B) Limit order
C) Stop order
D) Stop-limit order
What does diversification aim to reduce?
✔✔A) Unsystematic risk
B) Systematic risk
C) Inflation risk
D) Interest rate risk
2
, Which investment typically has the highest risk?
A) Treasury bonds
B) Money market funds
✔✔C) Common stock
D) Certificates of deposit
Which market involves the trading of existing securities?
✔✔A) Secondary market
B) Primary market
C) Capital market
D) Money market
What is a prospectus primarily used for?
A) Advertising securities
✔✔B) Disclosing investment risks and details
C) Calculating commissions
D) Approving trades
Which security has a fixed maturity date?
A) Common stock
✔✔B) Corporate bond
C) Preferred stock
D) Mutual fund
3
