1
FINRA SIE EXAM QUESTIONS WITH
CORRECT SOLUTIONS FOR
PREPARATION
In which of the follow situations is an employee of a public company permitted to
trade upon information without violating insider trading laws - correct-answer -
An independent securities analyst explains for the company next quarter could be
markedly poorer than expected
Under rule 144A, an issuer of a restricted stock is permitted to sell to which of the
following investors - correct-answer - Qualified Institutional Buyers (QIBs)
A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take - correct-answer -
Send written notice to his supervisor outlining the activity and compensation
structure
Direct Participation Programs (DPP) provide: - correct-answer - exposure to non-
correlated assets with steady returns
A decline is the gross domestic product (GDP) must last for at least how many
quarters to be considered a recession - correct-answer - 2
, 2
Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution - correct-answer - A
primary distribution involves a sale of newly issued shares by the issuer while a
secondary distribution involved the sale of already issued and outstanding shares
A customer has a cash balance in her account together with long positions in
several securities. She has made no securities transactions in the account during
the past 18 months. How often must the firm send her an account statement -
correct-answer - Quarterly
Which of the following communications with the public is considered misleading -
correct-answer - Literature providing 10-year performance information to support
predictions of future performance
Which of the following form U4 reportable events results in a statutory
disqualification - correct-answer - A felony conviction for a driving under the
influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life
insurance policy - correct-answer - Market risk
Which of the following stakeholders has first claim priority in a Chapter 11
proceeding - correct-answer - Secured debt holder
FINRA SIE EXAM QUESTIONS WITH
CORRECT SOLUTIONS FOR
PREPARATION
In which of the follow situations is an employee of a public company permitted to
trade upon information without violating insider trading laws - correct-answer -
An independent securities analyst explains for the company next quarter could be
markedly poorer than expected
Under rule 144A, an issuer of a restricted stock is permitted to sell to which of the
following investors - correct-answer - Qualified Institutional Buyers (QIBs)
A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take - correct-answer -
Send written notice to his supervisor outlining the activity and compensation
structure
Direct Participation Programs (DPP) provide: - correct-answer - exposure to non-
correlated assets with steady returns
A decline is the gross domestic product (GDP) must last for at least how many
quarters to be considered a recession - correct-answer - 2
, 2
Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution - correct-answer - A
primary distribution involves a sale of newly issued shares by the issuer while a
secondary distribution involved the sale of already issued and outstanding shares
A customer has a cash balance in her account together with long positions in
several securities. She has made no securities transactions in the account during
the past 18 months. How often must the firm send her an account statement -
correct-answer - Quarterly
Which of the following communications with the public is considered misleading -
correct-answer - Literature providing 10-year performance information to support
predictions of future performance
Which of the following form U4 reportable events results in a statutory
disqualification - correct-answer - A felony conviction for a driving under the
influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life
insurance policy - correct-answer - Market risk
Which of the following stakeholders has first claim priority in a Chapter 11
proceeding - correct-answer - Secured debt holder
