SIE Exam - Finra Example With Accurate Solutions 2025-2026
Which of the following situations is an employee of a public company allowed to trade
upon information without violating insider trading laws - ANSWER An independent
securities analyst accounts for the company next quarter could be markedly poorer
than expected
Under rule 144A, an issuer of a restricted stock is allowed to sell to which of the
following investors - ANSWER Qualified Institutional Buyers (QIBs)
A registered representative desires to engage in a private securities transaction. Which
of the following is the action that must be taken by the RR - ANSWER Send written notice
to his supervisor describing the activity and compensation scheme involved
Direct Participation Programs (DPP) offer - ANSWER access to uncorrelated assets that
produce steady returns
GDP decline how many quarters to be a recession- ANSWER 2
Which of the following comparisons best describes the essential difference between a
primary distribution and a secondary distribution - ANSWER A primary distribution
involves a sale of newly issued shares by the issuer while a secondary distribution
involved the sale of already issued and outstanding shares
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 - ANSWER Quarterly
Which of the following communications with the public is considered misleading -
ANSWER Literature providing 10-year performance information to support predictions
of future performance
, Which of the following form U4 reportable events results in a statutory disqualification -
ANSWER A felony conviction for a driving under the influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life insurance
policy - ANSWER Market risk
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding -
ANSWER Secured debt holder
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items except: - ANSWER commisions
The redemption value of an open-end investment company shares is based on the -
ANSWER NAV computed after the order is received
The owner of which the following products is the most exposed to inflationary risk -
ANSWER Treasury bonds
As to which one of the following is correct with respect to a customer account held as
tenants in common - ANSWER Ownership of the decedent's assets depends on their will
or state law.
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration - ANSWER $38
When is interest on treasury notes paid - ANSWER Semiannually
Blue-Sky laws are regulated by which of the following entities - ANSWER State
securities regulators
Which of the following situations is an employee of a public company allowed to trade
upon information without violating insider trading laws - ANSWER An independent
securities analyst accounts for the company next quarter could be markedly poorer
than expected
Under rule 144A, an issuer of a restricted stock is allowed to sell to which of the
following investors - ANSWER Qualified Institutional Buyers (QIBs)
A registered representative desires to engage in a private securities transaction. Which
of the following is the action that must be taken by the RR - ANSWER Send written notice
to his supervisor describing the activity and compensation scheme involved
Direct Participation Programs (DPP) offer - ANSWER access to uncorrelated assets that
produce steady returns
GDP decline how many quarters to be a recession- ANSWER 2
Which of the following comparisons best describes the essential difference between a
primary distribution and a secondary distribution - ANSWER A primary distribution
involves a sale of newly issued shares by the issuer while a secondary distribution
involved the sale of already issued and outstanding shares
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 - ANSWER Quarterly
Which of the following communications with the public is considered misleading -
ANSWER Literature providing 10-year performance information to support predictions
of future performance
, Which of the following form U4 reportable events results in a statutory disqualification -
ANSWER A felony conviction for a driving under the influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life insurance
policy - ANSWER Market risk
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding -
ANSWER Secured debt holder
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items except: - ANSWER commisions
The redemption value of an open-end investment company shares is based on the -
ANSWER NAV computed after the order is received
The owner of which the following products is the most exposed to inflationary risk -
ANSWER Treasury bonds
As to which one of the following is correct with respect to a customer account held as
tenants in common - ANSWER Ownership of the decedent's assets depends on their will
or state law.
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration - ANSWER $38
When is interest on treasury notes paid - ANSWER Semiannually
Blue-Sky laws are regulated by which of the following entities - ANSWER State
securities regulators
