SIE EXAM UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Which corporate voting procedures entitles a shareholder to one vote per share, and votes must be
divided evenly among the candidates being voted on?
Answer:
Statutory voting
Question:
2. What market refers to the trading of exchange-listed securities in the over-the-counter market? These
trades allow institutional investors to trade blocks of securities directly, rather than through an exchange,
providing liquidity and anonymity to buyers.
Answer:
Third market
Question:
3. An investor sells a naked call on Omikron for a $250 premium. What is true regarding the investors
position?
Answer:
The investor's potential loss is unlimited
Question:
4. Which act created the SEC and empowered it with broad authority over all aspects of the securities
industry?
Answer:
Securities Exchange Act of 1934
Question:
5. A free tool provided by FINRA that is intended to help consumers research the professional
backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors?
Answer:
BrokerCheck
Question:
6. The Federal Reserve Board performs what actions?
Answer:
It sets monetary policy, but does not set tax policy
Question:
7. An offering of shares to existing stockholders on a pro-rata basis is called a
Answer:
Rights offering
, Question:
8. The difference between a bond's price and the conversion parity price is referred to as
Answer:
conversion premium
Question:
9. An individual who meets what criteria must register as an investment adviser?
Answer:
The individual provides advice or analyses concerning securities The individual is in the business of
providing investment advice The individual provides investment advice for compensation
Question:
10. A type of preferred stock that gives the investor the right to receive dividends equal to the normally
specified rate, as well as an additional dividend based on a specific predetermined condition is called a
Answer:
participating preferred stock
Question:
11. Profit sharing plans have what characteristic?
Answer:
they can be invested entirely in company stock
Question:
12. What is true regarding the Central Registration Depository (CRD)?
Answer:
It was developed by NASAA and the NASD It consolidated a multiple paper-based state licensing and
regulatory process into a single, nationwide computer system Its computerized database contains the
licensing and disciplinary histories on more than 650,000 securities professionals and 5,200 securities
firms
Question:
13. Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms? They
operate both manually and electronically to facilitate price discovery during market opens, closes, and
during periods of trading imbalances and instability.
Answer:
Designated Market Makers
Question:
14. If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would be
needed to be classified as an economic depression?
Answer:
3 quarters
Question:
15. What is a correct reason to purchase a particular investment for a client's portfolio?
Answer:
Blue chip common stocks because they provide a hedge against inflation
CORRECT ANSWERS
Question:
1. Which corporate voting procedures entitles a shareholder to one vote per share, and votes must be
divided evenly among the candidates being voted on?
Answer:
Statutory voting
Question:
2. What market refers to the trading of exchange-listed securities in the over-the-counter market? These
trades allow institutional investors to trade blocks of securities directly, rather than through an exchange,
providing liquidity and anonymity to buyers.
Answer:
Third market
Question:
3. An investor sells a naked call on Omikron for a $250 premium. What is true regarding the investors
position?
Answer:
The investor's potential loss is unlimited
Question:
4. Which act created the SEC and empowered it with broad authority over all aspects of the securities
industry?
Answer:
Securities Exchange Act of 1934
Question:
5. A free tool provided by FINRA that is intended to help consumers research the professional
backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors?
Answer:
BrokerCheck
Question:
6. The Federal Reserve Board performs what actions?
Answer:
It sets monetary policy, but does not set tax policy
Question:
7. An offering of shares to existing stockholders on a pro-rata basis is called a
Answer:
Rights offering
, Question:
8. The difference between a bond's price and the conversion parity price is referred to as
Answer:
conversion premium
Question:
9. An individual who meets what criteria must register as an investment adviser?
Answer:
The individual provides advice or analyses concerning securities The individual is in the business of
providing investment advice The individual provides investment advice for compensation
Question:
10. A type of preferred stock that gives the investor the right to receive dividends equal to the normally
specified rate, as well as an additional dividend based on a specific predetermined condition is called a
Answer:
participating preferred stock
Question:
11. Profit sharing plans have what characteristic?
Answer:
they can be invested entirely in company stock
Question:
12. What is true regarding the Central Registration Depository (CRD)?
Answer:
It was developed by NASAA and the NASD It consolidated a multiple paper-based state licensing and
regulatory process into a single, nationwide computer system Its computerized database contains the
licensing and disciplinary histories on more than 650,000 securities professionals and 5,200 securities
firms
Question:
13. Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms? They
operate both manually and electronically to facilitate price discovery during market opens, closes, and
during periods of trading imbalances and instability.
Answer:
Designated Market Makers
Question:
14. If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would be
needed to be classified as an economic depression?
Answer:
3 quarters
Question:
15. What is a correct reason to purchase a particular investment for a client's portfolio?
Answer:
Blue chip common stocks because they provide a hedge against inflation
