FINRA SIE COMPLETE EXAM STUDY
QUESTIONS WITH ELABORATE
ANSWERS | GUARANTEE PASS!
1. In which of the follow situations is an employee of a public company
permitted to trade upon information without violating insider trading laws -
ANSWER An independent securities analyst explains for the company next
quarter could be markedly poorer than expected
2. Under rule 144A, an issuer of a restricted stock is permitted to sell to which
of the following investors - ANSWER Qualified Institutional Buyers (QIBs)
3. A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take - ANSWER
Send written notice to his supervisor outlining the activity and compensation
structure
4. A broker-dealer is permitted to accept payment for a new issue from a new
customer when the - ANSWER Registration is effective
5. Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions - ANSWER
The same stock in a cash account without paying for the stock in full
6. In the over-the-counter market, the term "spread" refers to the difference
between the: - ANSWER bid and asked prices
,7. The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at -
ANSWER a premium
8. Which of the following statements is true regarding the concept of an
annuity contract - ANSWER The kind of annuity selected partly determines
the payment amounts to the annuitant
9. Broker-dealer ABC seeks to underwrite a municipal securities offering by a
local town in which the mayor is currently seeking re-election. A municipal
finance professional who resides in the town and works for ABC contributed
$200 to the mayor's re-election campaign further without impacting the
municipal securities business of the firm, he is permitted to make an
additional contribution of up to what amount. - ANSWER $50
10.In a period of low inflation and economic recession, the Federal Reserve is
expected to take which of the following actions - ANSWER Buy bonds in
the open market
11.A firm is a participant is a public offering. To sell a substantial amount of
the securities to its customers, the firms agrees to repurchase the shares at no
less than the original sales price. Such agreements are: - ANSWER
prohibited as fraudulent and manipulative
12.Company ABC announces a 20% stock dividend for it common
shareholders. If a customer holds 1,000 shares at $50.00, what is the new
price and number of shares following the payment of the stock dividend -
ANSWER 1,200 shares at $41.67
13.FinCEN accomplishes its mission to safeguard the financial system from the
abuses of financial crime, including terrorist financing and money
laundering, by enforcing: - ANSWER The Bank Secrecy Act
,14.Call protection is most valuable to a bond owner when bond prices are
generally: - ANSWER Rising
15.Direct Participation Programs (DPP) provide: - ANSWER exposure to non-
correlated assets with steady returns
16.A decline is the gross domestic product (GDP) must last for at least how
many quarters to be considered a recession - ANSWER 2
17.Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution - 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
18.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 - ANSWER Quarterly
19.Which of the following communications with the public is considered
misleading - ANSWER Literature providing 10-year performance
information to support predictions of future performance
20.Which of the following form U4 reportable events results in a statutory
disqualification - ANSWER A felony conviction for a driving under the
influence (DUI) charge
, 21.Which of the following investment risks is the greatest risk in a variable life
insurance policy - ANSWER Market risk
22.Which of the following stakeholders has first claim priority in a Chapter 11
proceeding - ANSWER Secured debt holder
23.Under FINRA rules, noncash compensation connected with the sale of
variable contracts includes all of the following items except: - ANSWER
commisions
24.The redemption value of an open-end investment company shares is based
on the - ANSWER NAV computed after the order is received
25.The owner of which the following products is the most exposed to
inflationary risk - ANSWER Treasury bonds
26.Which of the following statements is true regarding a customer account held
as tenants in common - ANSWER The ownership for the decedent's assets
is governed by their will or state law
27.A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously
buys 100 shares of ABC stock for $35 per share. The customer will break
even when the stock is selling at what price per share at expiration -
ANSWER $38
28.When is interest on treasury notes paid - ANSWER Semiannually
29.Blue-Sky laws are regulated by which of the following entities - ANSWER
State securities regulators
QUESTIONS WITH ELABORATE
ANSWERS | GUARANTEE PASS!
1. In which of the follow situations is an employee of a public company
permitted to trade upon information without violating insider trading laws -
ANSWER An independent securities analyst explains for the company next
quarter could be markedly poorer than expected
2. Under rule 144A, an issuer of a restricted stock is permitted to sell to which
of the following investors - ANSWER Qualified Institutional Buyers (QIBs)
3. A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take - ANSWER
Send written notice to his supervisor outlining the activity and compensation
structure
4. A broker-dealer is permitted to accept payment for a new issue from a new
customer when the - ANSWER Registration is effective
5. Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions - ANSWER
The same stock in a cash account without paying for the stock in full
6. In the over-the-counter market, the term "spread" refers to the difference
between the: - ANSWER bid and asked prices
,7. The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at -
ANSWER a premium
8. Which of the following statements is true regarding the concept of an
annuity contract - ANSWER The kind of annuity selected partly determines
the payment amounts to the annuitant
9. Broker-dealer ABC seeks to underwrite a municipal securities offering by a
local town in which the mayor is currently seeking re-election. A municipal
finance professional who resides in the town and works for ABC contributed
$200 to the mayor's re-election campaign further without impacting the
municipal securities business of the firm, he is permitted to make an
additional contribution of up to what amount. - ANSWER $50
10.In a period of low inflation and economic recession, the Federal Reserve is
expected to take which of the following actions - ANSWER Buy bonds in
the open market
11.A firm is a participant is a public offering. To sell a substantial amount of
the securities to its customers, the firms agrees to repurchase the shares at no
less than the original sales price. Such agreements are: - ANSWER
prohibited as fraudulent and manipulative
12.Company ABC announces a 20% stock dividend for it common
shareholders. If a customer holds 1,000 shares at $50.00, what is the new
price and number of shares following the payment of the stock dividend -
ANSWER 1,200 shares at $41.67
13.FinCEN accomplishes its mission to safeguard the financial system from the
abuses of financial crime, including terrorist financing and money
laundering, by enforcing: - ANSWER The Bank Secrecy Act
,14.Call protection is most valuable to a bond owner when bond prices are
generally: - ANSWER Rising
15.Direct Participation Programs (DPP) provide: - ANSWER exposure to non-
correlated assets with steady returns
16.A decline is the gross domestic product (GDP) must last for at least how
many quarters to be considered a recession - ANSWER 2
17.Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution - 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
18.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 - ANSWER Quarterly
19.Which of the following communications with the public is considered
misleading - ANSWER Literature providing 10-year performance
information to support predictions of future performance
20.Which of the following form U4 reportable events results in a statutory
disqualification - ANSWER A felony conviction for a driving under the
influence (DUI) charge
, 21.Which of the following investment risks is the greatest risk in a variable life
insurance policy - ANSWER Market risk
22.Which of the following stakeholders has first claim priority in a Chapter 11
proceeding - ANSWER Secured debt holder
23.Under FINRA rules, noncash compensation connected with the sale of
variable contracts includes all of the following items except: - ANSWER
commisions
24.The redemption value of an open-end investment company shares is based
on the - ANSWER NAV computed after the order is received
25.The owner of which the following products is the most exposed to
inflationary risk - ANSWER Treasury bonds
26.Which of the following statements is true regarding a customer account held
as tenants in common - ANSWER The ownership for the decedent's assets
is governed by their will or state law
27.A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously
buys 100 shares of ABC stock for $35 per share. The customer will break
even when the stock is selling at what price per share at expiration -
ANSWER $38
28.When is interest on treasury notes paid - ANSWER Semiannually
29.Blue-Sky laws are regulated by which of the following entities - ANSWER
State securities regulators
