SIE EXAM PREP |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following items is not reported on a company's income statement?
A. Operating Expenses
B. Corporate Sales
C. Declaration of a cash dividend to stock holders
D. Income net of expenses and interests paid to bondholders
CORRECT ANSWER
C. Declaration of a cash dividend to stock holders
Question 2
____________ allows an issuer to sell securities multiple times using the same registration
statement.
CORRECT ANSWER
Shelf Registration
Question 3
In connection with the solicitation of securities, the anti-fraud rule of U.S. securities law
makes it unlawful to omit a material fact necessary to make the statements made:
A. not misleading
B. understandable
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,C. confusing
D. deceptive
CORRECT ANSWER
A. not misleading
Question 4
A married couple want to open a joint brokerage account in which each owner has an
undivided interest in the entire property. If one spouse dies, the other will retain rights to
the entire account. This account will be labeled as:
A. tenancy by the entirety
B. JTWROS
C. conservatorship of the whole
D. free and clear rights of survivorship
CORRECT ANSWER
B. JTWROS
(Joint Tenancy with Rights of Survivorship)
Question 5
A copy machine technician has learned of a major product recall announcement that will
have a significant impact on corporate profits while working at the site. He contacts
several friends and tells them to dump their stock in this company. In this situation:
CORRECT ANSWER
Although the technician is not an insider, he has violated his fiduciary responsibility
toward confidential information about this company, and is guilty of misappropriation of
information.
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,Question 6
The date on which the interest on a new municipal issue will begin accruing is the:
A. filing date
B. delivery date
C. closing date
D. dated date
CORRECT ANSWER
D. dated date
Question 7
Scott's broker-dealer was an underwriter in XYZ company's IPO. One year later, Scott
wants to hold shares of XYZ in a discretionary account that he manages for a customer for
a fee. Under FINRA Rule 2269, Scott is required to disclose the underwriting relationship:
A. to the client, in writing
B. to the client, only verbally
C. to the SEC, in writing
D. to the supervisory authority at his broker-dealer
CORRECT ANSWER
A. to the client, in writing
Question 8
The contract between a business issuing public stock and its lead underwriter is the:
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, A. Agreement Among Underwriters
B. Selected Dealer Agreement
C. Underwriting Agreement
D. Trust Indenture
CORRECT ANSWER
C. Underwriting Agreement
Question 9
As compared to U.S. Treasury securities, U.S. Agency securities:
A. pay interest to investors less frequently
B. have slightly higher yields
C. benefit from tax exemptions on interest payments
D. trade actively in the secondary market
CORRECT ANSWER
B. have slightly higher yields
Question 10
A firm has sold securities to dealers with the intention of buying back the securities at a
future date. This transaction is an example of a:
CORRECT ANSWER
repurchase agreement
Question 11
What is the maximum age at which the account owner may contribute to a Roth IRA?
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VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following items is not reported on a company's income statement?
A. Operating Expenses
B. Corporate Sales
C. Declaration of a cash dividend to stock holders
D. Income net of expenses and interests paid to bondholders
CORRECT ANSWER
C. Declaration of a cash dividend to stock holders
Question 2
____________ allows an issuer to sell securities multiple times using the same registration
statement.
CORRECT ANSWER
Shelf Registration
Question 3
In connection with the solicitation of securities, the anti-fraud rule of U.S. securities law
makes it unlawful to omit a material fact necessary to make the statements made:
A. not misleading
B. understandable
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,C. confusing
D. deceptive
CORRECT ANSWER
A. not misleading
Question 4
A married couple want to open a joint brokerage account in which each owner has an
undivided interest in the entire property. If one spouse dies, the other will retain rights to
the entire account. This account will be labeled as:
A. tenancy by the entirety
B. JTWROS
C. conservatorship of the whole
D. free and clear rights of survivorship
CORRECT ANSWER
B. JTWROS
(Joint Tenancy with Rights of Survivorship)
Question 5
A copy machine technician has learned of a major product recall announcement that will
have a significant impact on corporate profits while working at the site. He contacts
several friends and tells them to dump their stock in this company. In this situation:
CORRECT ANSWER
Although the technician is not an insider, he has violated his fiduciary responsibility
toward confidential information about this company, and is guilty of misappropriation of
information.
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,Question 6
The date on which the interest on a new municipal issue will begin accruing is the:
A. filing date
B. delivery date
C. closing date
D. dated date
CORRECT ANSWER
D. dated date
Question 7
Scott's broker-dealer was an underwriter in XYZ company's IPO. One year later, Scott
wants to hold shares of XYZ in a discretionary account that he manages for a customer for
a fee. Under FINRA Rule 2269, Scott is required to disclose the underwriting relationship:
A. to the client, in writing
B. to the client, only verbally
C. to the SEC, in writing
D. to the supervisory authority at his broker-dealer
CORRECT ANSWER
A. to the client, in writing
Question 8
The contract between a business issuing public stock and its lead underwriter is the:
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, A. Agreement Among Underwriters
B. Selected Dealer Agreement
C. Underwriting Agreement
D. Trust Indenture
CORRECT ANSWER
C. Underwriting Agreement
Question 9
As compared to U.S. Treasury securities, U.S. Agency securities:
A. pay interest to investors less frequently
B. have slightly higher yields
C. benefit from tax exemptions on interest payments
D. trade actively in the secondary market
CORRECT ANSWER
B. have slightly higher yields
Question 10
A firm has sold securities to dealers with the intention of buying back the securities at a
future date. This transaction is an example of a:
CORRECT ANSWER
repurchase agreement
Question 11
What is the maximum age at which the account owner may contribute to a Roth IRA?
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