Comprehensive SIE Practice Exam
1. The primary purpose of a syndicate desk in the con- build an order book and al-
text of an equity offering is to: locate the stock
2. Which of the following responses describes an ad- Lower management fees
vantage of index funds? due to passive management
of the fund
3. Which of the following comparisons best describes A primary distribution in-
the essential difference between a primary distribu- volves a sale of newly is-
tion and a secondary distribution? sued shares by the issuer
while a secondary distribu-
tion involves the sale of al-
ready issued and outstand-
ing shares.
4. The computation of dollar prices and accrued inter- 30/360
est on municipal bonds is normally on what calendar
basis?
5. Direct participation programs (DPPs) provide: exposure to non-correlated
assets
6. Call protection is most valuable to a bond owner rising
when bond prices are generally:
7. Which of the following represents the effect of a The price per share of com-
stock split? mon stock decreases
8. Stability in the value of a debt portfolio is greatest maturities of the debt secu-
when: rities are short.
9. Which of the following actions is required of a bro- Designating an AML compli-
ker-dealer's anti-money laundering (AML) program? ance officer
, Comprehensive SIE Practice Exam
10. Which of the following actions violates FINRA rules Engaging in private secu-
regarding selling away? rities transactions without
written prior consent of the
employing BD
11. Company ABC announces a 20% stock dividend for 1,200 shares at $41.67
its common shareholders. 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 divi-
dend?
12. Roth 401(k) and Roth individual retirement account Qualified distributions are
(IRA) plans share which of the following features? excluded from federal in-
come tax
13. An associated person who is not a registered rep- Provide account opening
resentative is permitted to engage in which of the forms to a new customer
following activities?
14. The last transaction in XYZ 5.50s 2030 was at 102. a premium
This bond is selling at:
15. A registered representative (RR) who wants to place A registered principal of the
a mutual fund advertisement must obtain written RR's firm
approval from which of the following parties?
16. Under normal circumstances, a customer's letter of 13 months
intent on a mutual fund purchase is valid for what
maximum period of time?
17. To offer its shareholders a privilege to obtain its Rights
shares at a fixed price, which of the following prod-
ucts does a corporation issue?
, Comprehensive SIE Practice Exam
18. The call provision of a bond stipulates which of the Call date and call price
following factors?
19. A decline in the gross domestic product (GDP) must 2 quarters
last for at least how many quarters to be considered
a recession?
20. Regular way settlement on Treasury bonds is: next business day
21. Which of the following statements is true regarding The ownership of the dece-
a customer account held as tenants in common? dent's assets is governed by
their will or state law.
22. Which of the following statements is true about trea- It is issued stock that has
sury stock? been subsequently reac-
quired by the corporation
23. Which of the following investment risks is the great- Market risk
est risk in a variable life insurance policy?
24. In the event of a stock split, which of the following Transfer agent
parties is required to maintain a record of the share-
holders eligible to receive the additional shares?
25. UTMA accounts are opened under the tax ID of the: minor
26. Under industry regulations, an initial purchase of $2,000
$3,000 of common stock in a margin account re-
quires a cash deposit of:
27. At issue, which of the following debt securities ma- Money market instruments
ture in one year or less?
28.
, Comprehensive SIE Practice Exam
Which of the following considerations should a reg- The potential deductibility of
istered representative explain to a customer when contributions from state tax-
recommending a 529 savings plan? es
29. A transaction in which a writer covers a position by a closing purchase
purchasing an option is called:
30. Broker-dealer ABC seeks to underwrite a municipal $50
securities offering by a local town in which the mayor
is currently seeking re-election. A municipal finance
professional who resides in the town and works
for ABC contributed $200 to the mayor's re-election
campaign 13 months ago. If the employee wants
to support the campaign further without impacting
the municipal securities business of the firm, he is
permitted to make an additional contribution of up
to what amount?
31. In which of the following situations is an employee An independent securities
of a public company permitted to trade upon infor- analyst explains to the em-
mation without violating insider trading laws? ployee why the earnings for
the company next quarter
could be markedly poorer
than expected.
32. Which of the following stakeholders has first claim Secured debt holders
priority in a Chapter 11 proceeding?
33. An investor owns 100 shares of XYZ common stock 50 shares at $100 per share
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:
1. The primary purpose of a syndicate desk in the con- build an order book and al-
text of an equity offering is to: locate the stock
2. Which of the following responses describes an ad- Lower management fees
vantage of index funds? due to passive management
of the fund
3. Which of the following comparisons best describes A primary distribution in-
the essential difference between a primary distribu- volves a sale of newly is-
tion and a secondary distribution? sued shares by the issuer
while a secondary distribu-
tion involves the sale of al-
ready issued and outstand-
ing shares.
4. The computation of dollar prices and accrued inter- 30/360
est on municipal bonds is normally on what calendar
basis?
5. Direct participation programs (DPPs) provide: exposure to non-correlated
assets
6. Call protection is most valuable to a bond owner rising
when bond prices are generally:
7. Which of the following represents the effect of a The price per share of com-
stock split? mon stock decreases
8. Stability in the value of a debt portfolio is greatest maturities of the debt secu-
when: rities are short.
9. Which of the following actions is required of a bro- Designating an AML compli-
ker-dealer's anti-money laundering (AML) program? ance officer
, Comprehensive SIE Practice Exam
10. Which of the following actions violates FINRA rules Engaging in private secu-
regarding selling away? rities transactions without
written prior consent of the
employing BD
11. Company ABC announces a 20% stock dividend for 1,200 shares at $41.67
its common shareholders. 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 divi-
dend?
12. Roth 401(k) and Roth individual retirement account Qualified distributions are
(IRA) plans share which of the following features? excluded from federal in-
come tax
13. An associated person who is not a registered rep- Provide account opening
resentative is permitted to engage in which of the forms to a new customer
following activities?
14. The last transaction in XYZ 5.50s 2030 was at 102. a premium
This bond is selling at:
15. A registered representative (RR) who wants to place A registered principal of the
a mutual fund advertisement must obtain written RR's firm
approval from which of the following parties?
16. Under normal circumstances, a customer's letter of 13 months
intent on a mutual fund purchase is valid for what
maximum period of time?
17. To offer its shareholders a privilege to obtain its Rights
shares at a fixed price, which of the following prod-
ucts does a corporation issue?
, Comprehensive SIE Practice Exam
18. The call provision of a bond stipulates which of the Call date and call price
following factors?
19. A decline in the gross domestic product (GDP) must 2 quarters
last for at least how many quarters to be considered
a recession?
20. Regular way settlement on Treasury bonds is: next business day
21. Which of the following statements is true regarding The ownership of the dece-
a customer account held as tenants in common? dent's assets is governed by
their will or state law.
22. Which of the following statements is true about trea- It is issued stock that has
sury stock? been subsequently reac-
quired by the corporation
23. Which of the following investment risks is the great- Market risk
est risk in a variable life insurance policy?
24. In the event of a stock split, which of the following Transfer agent
parties is required to maintain a record of the share-
holders eligible to receive the additional shares?
25. UTMA accounts are opened under the tax ID of the: minor
26. Under industry regulations, an initial purchase of $2,000
$3,000 of common stock in a margin account re-
quires a cash deposit of:
27. At issue, which of the following debt securities ma- Money market instruments
ture in one year or less?
28.
, Comprehensive SIE Practice Exam
Which of the following considerations should a reg- The potential deductibility of
istered representative explain to a customer when contributions from state tax-
recommending a 529 savings plan? es
29. A transaction in which a writer covers a position by a closing purchase
purchasing an option is called:
30. Broker-dealer ABC seeks to underwrite a municipal $50
securities offering by a local town in which the mayor
is currently seeking re-election. A municipal finance
professional who resides in the town and works
for ABC contributed $200 to the mayor's re-election
campaign 13 months ago. If the employee wants
to support the campaign further without impacting
the municipal securities business of the firm, he is
permitted to make an additional contribution of up
to what amount?
31. In which of the following situations is an employee An independent securities
of a public company permitted to trade upon infor- analyst explains to the em-
mation without violating insider trading laws? ployee why the earnings for
the company next quarter
could be markedly poorer
than expected.
32. Which of the following stakeholders has first claim Secured debt holders
priority in a Chapter 11 proceeding?
33. An investor owns 100 shares of XYZ common stock 50 shares at $100 per share
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:
