TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
ANDREW, FINRA SIE EXAM 2024 -
PERSONAL STUDY SET QUESTIONS
AND ANSWERS | 100% CORRECT
An investor owns 100 shares of XYZ common stock at the current market price of $50
per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock
position will be:
Correct✔️✔️-50 shares at $100 per share
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions?
Correct✔️✔️-The same stock in a cash account without paying for the stock in full.
Under industry regulations, an initial purchase of $3,000 of common stock in a margin
account requires a cash deposit of:
$2,000
Upon expiration, all in-the-money S&P 100 Index call options are settled by the delivery
of which of the following?
Correct✔️✔️-Cash
In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares?
Correct✔️✔️-Transfer agent
1/57
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Which of the following statements is true regarding a customer account held as tenants
in common?
Correct✔️✔️-The ownership of the decedent's assets is governed by their will or state
law.
An associated person who is not a registered representative is permitted to engage in
which of the following activities?
Correct✔️✔️-Provide account opening forms to a new customer.
Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors?
Correct✔️✔️-Qualified institutional buyers (QIBs)
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
Which of the following represents the effect of a stock split? Correct✔️✔️-The price per
share of common stock decreases
The price per share of common stock decreases.
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the
following products does a corporation issue?
Correct✔️✔️-Rights
In a period of low inflation and economic recession, the Federal Reserve is expected to
take which of the following actions?
Correct✔️✔️-Buy bonds in the open market.
2/57
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Which of the following communications with the public is considered misleading?
Correct✔️✔️-Literature providing 10-year performance information to support predictions
of future performance.
Which of the following statements is true regarding the concept of an annuity contract?
Correct✔️✔️-The kind of annuity selected partly determines the payment amounts to the
annuitant.
Which of the following outcomes are possible for the writer of a cover call option?
Correct✔️✔️-Profit limited and loss limited.
Which of the following actions is required when a firm receives cash in excess of
$10,000 from one customer in one business day?
Correct✔️✔️-File a Currency Transaction Report (CTR)
Which of the following responses describes an advantage of index funds?
Correct✔️✔️-Lower management fees due to passive management of the fund.
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the
following features?
Correct✔️✔️-Qualified distributions are excluded from federal income tax
UTMA accounts are opened under the tax ID of the:
minor
A registered representative is reviewing the following portfolio:
• 30% ABC Energy Company
• 30% XYZ Health Care Company
3/57
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
• 30% Exchange-traded fund (tracks the S&P 500)
• 10% Money market funds
Which of the following risks is inherent in this portfolio?
Correct✔️✔️-Nonsystematic
Under a system of statutory voting, a common stockholder has as many votes for each
vacancy on the board of directors as the number of:
shares owned by the stockholder
The owner of which of the following products is most exposed to inflationary risk?
Correct✔️✔️-Treasury bonds
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?
Correct✔️✔️-Quarterly
At issue, which of the following debt securities mature in one year or less?
Correct✔️✔️-Money market instruments
Call protection is most valuable to a bond owner when bond prices are generally:
Correct✔️✔️-Rising
If a market maker posts a quote of 10.00 - 10.10 [25×10], which of the following actions
is the market maker willing to take?
4/57
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
ANDREW, FINRA SIE EXAM 2024 -
PERSONAL STUDY SET QUESTIONS
AND ANSWERS | 100% CORRECT
An investor owns 100 shares of XYZ common stock at the current market price of $50
per share. If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock
position will be:
Correct✔️✔️-50 shares at $100 per share
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions?
Correct✔️✔️-The same stock in a cash account without paying for the stock in full.
Under industry regulations, an initial purchase of $3,000 of common stock in a margin
account requires a cash deposit of:
$2,000
Upon expiration, all in-the-money S&P 100 Index call options are settled by the delivery
of which of the following?
Correct✔️✔️-Cash
In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares?
Correct✔️✔️-Transfer agent
1/57
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Which of the following statements is true regarding a customer account held as tenants
in common?
Correct✔️✔️-The ownership of the decedent's assets is governed by their will or state
law.
An associated person who is not a registered representative is permitted to engage in
which of the following activities?
Correct✔️✔️-Provide account opening forms to a new customer.
Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors?
Correct✔️✔️-Qualified institutional buyers (QIBs)
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
Which of the following represents the effect of a stock split? Correct✔️✔️-The price per
share of common stock decreases
The price per share of common stock decreases.
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the
following products does a corporation issue?
Correct✔️✔️-Rights
In a period of low inflation and economic recession, the Federal Reserve is expected to
take which of the following actions?
Correct✔️✔️-Buy bonds in the open market.
2/57
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Which of the following communications with the public is considered misleading?
Correct✔️✔️-Literature providing 10-year performance information to support predictions
of future performance.
Which of the following statements is true regarding the concept of an annuity contract?
Correct✔️✔️-The kind of annuity selected partly determines the payment amounts to the
annuitant.
Which of the following outcomes are possible for the writer of a cover call option?
Correct✔️✔️-Profit limited and loss limited.
Which of the following actions is required when a firm receives cash in excess of
$10,000 from one customer in one business day?
Correct✔️✔️-File a Currency Transaction Report (CTR)
Which of the following responses describes an advantage of index funds?
Correct✔️✔️-Lower management fees due to passive management of the fund.
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the
following features?
Correct✔️✔️-Qualified distributions are excluded from federal income tax
UTMA accounts are opened under the tax ID of the:
minor
A registered representative is reviewing the following portfolio:
• 30% ABC Energy Company
• 30% XYZ Health Care Company
3/57
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
• 30% Exchange-traded fund (tracks the S&P 500)
• 10% Money market funds
Which of the following risks is inherent in this portfolio?
Correct✔️✔️-Nonsystematic
Under a system of statutory voting, a common stockholder has as many votes for each
vacancy on the board of directors as the number of:
shares owned by the stockholder
The owner of which of the following products is most exposed to inflationary risk?
Correct✔️✔️-Treasury bonds
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?
Correct✔️✔️-Quarterly
At issue, which of the following debt securities mature in one year or less?
Correct✔️✔️-Money market instruments
Call protection is most valuable to a bond owner when bond prices are generally:
Correct✔️✔️-Rising
If a market maker posts a quote of 10.00 - 10.10 [25×10], which of the following actions
is the market maker willing to take?
4/57
