….,,,./.,./.,./../../../…./././././.,.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,.,.,.
FINRA SIE Securities Industry Essentials
Exam 2026/2027 Latest Edition |
Comprehensive Study Guide | Practice
Questions & Detailed Answer Explanations |
Securities Licensing Exam Prep
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
A 30/360
B 30/365
C Actual/360
D Actual/365
A
A transaction in which a writer covers a position by purchasing an option is called:
A. a closing sale
B. a closing purchase
C. an opening sale
D. an opening purchase
B
At the time of issuance, which of the following securities normally has the longest period to
expiration?
,….,,,./.,./.,./../../../…./././././.,.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,.,.,.
A. rights
B. options
C. warrants
D. repurchase agreements
C
Under Federal Reserve T, a 90-day restriction is imposed when a customer opens and closes
which of the following positions?
A. The same stock on the same day in a margin account
B. The same stock in different accounts on the same day
C. The same stock in different accounts in the same household.
D. The same stock in cash account without paying for the stock
D
A married couple who earned income that exceeded $300,000 in each of the prior two years and
reasonably expects the same for the current year is:
A. a qualified investor.
B. an accredited investor
C. an institutional investor
D. a qualified institutional buyer (QIB)
B
Direct participation programs (DDPs) 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
In which of the following situations is an employee of a public company permitted to trade upon
information without violating insider trading laws?
A. An independent securities analyst explains to the employee why the earnings for the company
next quarter could be markedly poorer than expected.
B. The employee's neighbor works for the government and informs him that the government will
award a major contract to the company next month.
C. The employee's spouse works in the corporate headquarters and shares with him a
conversation overheard at work regarding possible acquisition targets.
D. A coworker informs the employee of a conversation he had with the administrative assistant to
the company's general counsel regarding key developments in an ongoing class action lawsuit.
A
Blue-sky laws are regulated by which of the following entities?
A. SEC
B. MSRB
C. FINRA
D. State securities regulators
D
The last transaction in XYZ 5.50s was at 102. This bond is selling at:
A. par
B. a premium
FINRA SIE Securities Industry Essentials
Exam 2026/2027 Latest Edition |
Comprehensive Study Guide | Practice
Questions & Detailed Answer Explanations |
Securities Licensing Exam Prep
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
A 30/360
B 30/365
C Actual/360
D Actual/365
A
A transaction in which a writer covers a position by purchasing an option is called:
A. a closing sale
B. a closing purchase
C. an opening sale
D. an opening purchase
B
At the time of issuance, which of the following securities normally has the longest period to
expiration?
,….,,,./.,./.,./../../../…./././././.,.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,./.,.,.,.
A. rights
B. options
C. warrants
D. repurchase agreements
C
Under Federal Reserve T, a 90-day restriction is imposed when a customer opens and closes
which of the following positions?
A. The same stock on the same day in a margin account
B. The same stock in different accounts on the same day
C. The same stock in different accounts in the same household.
D. The same stock in cash account without paying for the stock
D
A married couple who earned income that exceeded $300,000 in each of the prior two years and
reasonably expects the same for the current year is:
A. a qualified investor.
B. an accredited investor
C. an institutional investor
D. a qualified institutional buyer (QIB)
B
Direct participation programs (DDPs) 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
In which of the following situations is an employee of a public company permitted to trade upon
information without violating insider trading laws?
A. An independent securities analyst explains to the employee why the earnings for the company
next quarter could be markedly poorer than expected.
B. The employee's neighbor works for the government and informs him that the government will
award a major contract to the company next month.
C. The employee's spouse works in the corporate headquarters and shares with him a
conversation overheard at work regarding possible acquisition targets.
D. A coworker informs the employee of a conversation he had with the administrative assistant to
the company's general counsel regarding key developments in an ongoing class action lawsuit.
A
Blue-sky laws are regulated by which of the following entities?
A. SEC
B. MSRB
C. FINRA
D. State securities regulators
D
The last transaction in XYZ 5.50s was at 102. This bond is selling at:
A. par
B. a premium
