COMPREHENSIVE SIE PRACTICE EXAM FOR FINRA CERTIFICATION (2023)

1. The primary purpose of a syndicate desk in the context of an equity offering is to:: build an order book and allocate the stock 2. Which of the following responses describes an advantage of index funds?- : Lower management fees due to passive management of the fund 3. Which of the following comparisons best describes the essential difference between a primary distribution and a secondary distribution?: A primary dis- tribution involves a sale of newly issued shares by the issuer while a secondary distribution involves the sale of already issued and outstanding shares. 4. The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar basis?: 30/360 5. Direct participation programs (DPPs) provide:: exposure to non-correlated assets 6. Call protection is most valuable to a bond owner when bond prices are generally:: rising 7. Which of the following represents the effect of a stock split?: The price per share of common stock decreases 8. Stability in the value of a debt portfolio is greatest when:: maturities of the debt securities are short. 9. Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program?: Designating an AML compliance officer 10. Which of the following actions violates FINRA rules regarding selling away?: Engaging in private securities transactions without written prior consent of the employing BD 11. Company ABC announces a 20% stock dividend for its common share- holders. 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?: 1,200 shares at $41.67 12. Roth 401(k) and Roth individual retirement account (IRA) plans share which of the following features?: Qualified distributions are excluded from federal income tax 13. An associated person who is not a registered representative is permitted to engage in which of the following activities?: Provide account opening forms to a new customer 14. The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:: a premium 15. A registered representative (RR) who wants to place a mutual fund adver- tisement must obtain written approval from which of the following parties?: A registered principal of the RR's firm 16. Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for what maximum period of time?: 13 months 17. To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following products does a corporation issue?: Rights 18. The call provision of a bond stipulates which of the following factors?: Call date and call price 19. A decline in the gross domestic product (GDP) must last for at least how many quarters to be considered a recession?: 2 quarters 20. Regular way settlement on Treasury bonds is:: next business day 21. Which of the following statements is true regarding a customer account held as tenants in common?: The ownership of the decedent's assets is governed by their will or state law. 22. Which of the following statements is true about treasury stock?: It is issued stock that has been subsequently reacquired by the corporation 23. Which of the following investment risks is the greatest risk in a variable life insurance policy?: M