FINRA PRACTICE SIE EXAM QUESTIONS
AND CORRECT ANSWERS VERIFIED
LATEST 2023-2024 GRADE A +
The redemption value of an open-end investment company's
shares is based on the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - CORRECT
ANSWER>>NAV computed after the order is received
The computation of dollar prices and accrued interest on
municipal bonds is normal on what calendar basis?
30/360
30/365
Actual/360
Actual/365 - CORRECT ANSWER>>30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
,FINRA
state securities regulators - CORRECT ANSWER>>State
securities regulators
At the time of issuance, which of the following securities normally
has the longest period to expiration?
Rights
Options
Warrants
Repurchase agreements - CORRECT ANSWER>>Warrants
Regular way settlement on Treasury Bonds is:
same day
next business day
second business day
fifth business day - CORRECT ANSWER>>next business day
A firm is a participant in a public offering. To sell a substantial
amount of the securities to its customers, the firm agrees to
repurchase the shares at no less than the original sales price.
Such agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
,prohibited unless the firm immediately sets aside funds for the
repurchase
permissible if the customers retain the right to sell the securities
into the open market. - CORRECT ANSWER>>prohibited as
fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following
information must a firm include in its customer privacy and opt-out
notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
the policies to protect the security of nonpublic information -
CORRECT ANSWER>>the policies to protect the security of
nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
parent
custodian - CORRECT ANSWER>>minor
, Under FINRA rules, noncash compensation connected with the
sale of variable contracts includes all of the following items
EXCEPT:
gifts
meals
lodging
commissions - CORRECT ANSWER>>commissions
Describe the difference between primary distribution and
secondary distribution. - CORRECT ANSWER>>a primary
distribution involves a sale of newly issued shares by the issuer
while a secondary distribution involves the sale of already issued
and outstanding shares
If a market maker posts a quotes of 10.00 - 10.10 (25x10), which
of the following actions is the market maker willing to take?
sell 1,000 shares at $10 and buy 2,500 shares at $10.10
buy 2,500 shares at $10 and sell 1,000 shares at $10.10
sell 100 shares at $10 and buy 250 shares at $10.10
buy 250 shares at $10 and sell 100 shares at $10.10 - CORRECT
ANSWER>>buy 2,500 shares at $10 and sell 1,000 shares at
$10.10
AND CORRECT ANSWERS VERIFIED
LATEST 2023-2024 GRADE A +
The redemption value of an open-end investment company's
shares is based on the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - CORRECT
ANSWER>>NAV computed after the order is received
The computation of dollar prices and accrued interest on
municipal bonds is normal on what calendar basis?
30/360
30/365
Actual/360
Actual/365 - CORRECT ANSWER>>30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
,FINRA
state securities regulators - CORRECT ANSWER>>State
securities regulators
At the time of issuance, which of the following securities normally
has the longest period to expiration?
Rights
Options
Warrants
Repurchase agreements - CORRECT ANSWER>>Warrants
Regular way settlement on Treasury Bonds is:
same day
next business day
second business day
fifth business day - CORRECT ANSWER>>next business day
A firm is a participant in a public offering. To sell a substantial
amount of the securities to its customers, the firm agrees to
repurchase the shares at no less than the original sales price.
Such agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
,prohibited unless the firm immediately sets aside funds for the
repurchase
permissible if the customers retain the right to sell the securities
into the open market. - CORRECT ANSWER>>prohibited as
fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following
information must a firm include in its customer privacy and opt-out
notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
the policies to protect the security of nonpublic information -
CORRECT ANSWER>>the policies to protect the security of
nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
parent
custodian - CORRECT ANSWER>>minor
, Under FINRA rules, noncash compensation connected with the
sale of variable contracts includes all of the following items
EXCEPT:
gifts
meals
lodging
commissions - CORRECT ANSWER>>commissions
Describe the difference between primary distribution and
secondary distribution. - CORRECT ANSWER>>a primary
distribution involves a sale of newly issued shares by the issuer
while a secondary distribution involves the sale of already issued
and outstanding shares
If a market maker posts a quotes of 10.00 - 10.10 (25x10), which
of the following actions is the market maker willing to take?
sell 1,000 shares at $10 and buy 2,500 shares at $10.10
buy 2,500 shares at $10 and sell 1,000 shares at $10.10
sell 100 shares at $10 and buy 250 shares at $10.10
buy 250 shares at $10 and sell 100 shares at $10.10 - CORRECT
ANSWER>>buy 2,500 shares at $10 and sell 1,000 shares at
$10.10
