FINRA SIE MAIN EXAMINATION SET QUESTIONS AND
SOLUTIONS RATED A+
✔✔In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares?
A. DTC
B. Issuer
C. custodian
D. transfer agent - ✔✔D
✔✔Direct participation programs (DPPs) provide:
A. liquidity and transparency
B. exposure to non-correlated assets with steady returns
C. market-related correlations with higher average returns
D. investors with direct purchases of stock from public companies - ✔✔B
✔✔A decline in the gross domestic product (GDP) must last for at least how many
quarters to be considered a recession?
A. 1 quarter
B. 2 quarters
C. 3 quarters
D. 4 quarters - ✔✔B
✔✔Which of the following actions is required of a broker-dealer's anti-money laundering
(AML) program?
A. designing an AML compliance officer
B. filling of the firm's AML program with FINRA
C. conducting background checks of all employees
D. identifying to regulators the employees responsible for Currency Transaction Reports
(CTRs) - ✔✔A
✔✔Under SEC Regulation S-P (consumer privacy), which of the following information
must a firm include in its customer privacy and opt-out notices?
A. the address of the firm's website
B. the fee to opt out from the privacy program
C. the deadline by which to opt out from the privacy program
D. the policies to protect the security of nonpublic information - ✔✔D
, ✔✔An investor owns 100 shares of XYZ common stock at the current market price of
$50 per share. If XYZ conduct a 1-for-2 reverse stock split, the investor's post-split-stock
position will be:
A. 50 shares at $25 per share
B. 50 shares at $100 per share
C. 200 shares at $25 per share
D. 200 shares at $100 per share - ✔✔B
✔✔Call protection is MOST valuable to a bond owner when bond prices are generally:
A. rising
B. falling
C. stable
D. fluctuating - ✔✔A
✔✔The owner of which of the following products is MOST exposed to inflationary risk?
A. utility stocks
B. Treasury bills
C. treasury bonds
D. blue chip industrials - ✔✔C
✔✔The last transaction in XYZ 5.50s 2030 was at 102. The bond is selling at:
A. par
B. a premium
C. a discount
D. asset value - ✔✔B
✔✔Which of the following security types provides investors with a stated maturity date,
a floating interest rate, and an option to put the security back to a financial intermediary
on a daily or weekly basis?
A. equity put option
B. perpetual preferred stock
C. variable rate demand note
D. tax-deferred variable annuity - ✔✔C
✔✔The redemption value of an open-end investment company's shares is based on
the:
A. previous offering price
B. previous closing net asset value (NAV)
C. NAV competed after the order is received
SOLUTIONS RATED A+
✔✔In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares?
A. DTC
B. Issuer
C. custodian
D. transfer agent - ✔✔D
✔✔Direct participation programs (DPPs) provide:
A. liquidity and transparency
B. exposure to non-correlated assets with steady returns
C. market-related correlations with higher average returns
D. investors with direct purchases of stock from public companies - ✔✔B
✔✔A decline in the gross domestic product (GDP) must last for at least how many
quarters to be considered a recession?
A. 1 quarter
B. 2 quarters
C. 3 quarters
D. 4 quarters - ✔✔B
✔✔Which of the following actions is required of a broker-dealer's anti-money laundering
(AML) program?
A. designing an AML compliance officer
B. filling of the firm's AML program with FINRA
C. conducting background checks of all employees
D. identifying to regulators the employees responsible for Currency Transaction Reports
(CTRs) - ✔✔A
✔✔Under SEC Regulation S-P (consumer privacy), which of the following information
must a firm include in its customer privacy and opt-out notices?
A. the address of the firm's website
B. the fee to opt out from the privacy program
C. the deadline by which to opt out from the privacy program
D. the policies to protect the security of nonpublic information - ✔✔D
, ✔✔An investor owns 100 shares of XYZ common stock at the current market price of
$50 per share. If XYZ conduct a 1-for-2 reverse stock split, the investor's post-split-stock
position will be:
A. 50 shares at $25 per share
B. 50 shares at $100 per share
C. 200 shares at $25 per share
D. 200 shares at $100 per share - ✔✔B
✔✔Call protection is MOST valuable to a bond owner when bond prices are generally:
A. rising
B. falling
C. stable
D. fluctuating - ✔✔A
✔✔The owner of which of the following products is MOST exposed to inflationary risk?
A. utility stocks
B. Treasury bills
C. treasury bonds
D. blue chip industrials - ✔✔C
✔✔The last transaction in XYZ 5.50s 2030 was at 102. The bond is selling at:
A. par
B. a premium
C. a discount
D. asset value - ✔✔B
✔✔Which of the following security types provides investors with a stated maturity date,
a floating interest rate, and an option to put the security back to a financial intermediary
on a daily or weekly basis?
A. equity put option
B. perpetual preferred stock
C. variable rate demand note
D. tax-deferred variable annuity - ✔✔C
✔✔The redemption value of an open-end investment company's shares is based on
the:
A. previous offering price
B. previous closing net asset value (NAV)
C. NAV competed after the order is received
