FINRA SIE Practice Exam Questions with
100% Correct Answers Latest Version 2025
Graded A+
In which of the following situations is an employee of a public company permitted to
trade upon information without violating insider trading laws?
A) An independent securities analyst explains to the employee why the earnings for the
company next quarter could be markedly poorer than expected
B) The employee's spouse works in the corporate headquarters and shares with him a
conversation overheard at work regarding possible acquisition targets.
C) The employees neighbor works for the government and informs him that the
government will award a major contract to the company next month. - Correct Answer-
An independent securities analyst explains to the employee why the earnings for the
company next quarter could be markedly poorer than expected.
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items except:
A) gifts
B)meals
C) commisions
D) lodging - Correct Answer-Commissions
The call provision of a bond stipulates which of the following factors?
A) maturity date
B) Call date and call price
C) Original issue discount
D) Coupon rate and call date - Correct Answer-Call dat and call price
When selling a fixed amount of a base currency to purchase a counter currency, which
of the following factors is primarily used to determine how much of the counter currency
the customer will receive?
A) The spot exchange rate
B) The counter currency inflation rate
C) The trade balance between the two countries - Correct Answer-The spot exchange
rate
, All of the following risks apply to both foreign and domestic debt instruments except:
A) Political
B) Exchange
C) Repayment
D) Interest rate - Correct Answer-Exchange
A customer is an officer of a company that is involved in some significant changes. All of
the following items are examples of corporate affairs that could be considered inside
information if the customer shares them with his registered representative except:
A) Pending transactions
B) Declared stock dividend
C) Top management changes
D) Imminent financial liquidity - Correct Answer-Declared stock dividend
When is interest on Treasury notes paid?
A) Quarterly
B) Semiannually
C) Annually - Correct Answer-Semiannually
Upon expiration, all in-the-money S&P 100 index call options are settled by delivery of
which of the following?
A) Cash
B) S&P exchange-traded fund
C) S&P 100 index shorts - Correct Answer-Cash
At the time of issuance, which of the following securities normally has the longest period
to expiration?
A) Rights
B) Warrants
C) Options - Correct Answer-Warrants
Which of the following Form U4 reportable events results in a statutory disqualification
A) A felony conviction for a driving under the influence (DUI) charge
B) A written customer complaint alleging misappropriation of assets
C) A personal bankruptcy filing
D) A written customer complaint alleging misappropriation of assets - Correct Answer-A
felony conviction for a driving under the influence (DUI)An inves
100% Correct Answers Latest Version 2025
Graded A+
In which of the following situations is an employee of a public company permitted to
trade upon information without violating insider trading laws?
A) An independent securities analyst explains to the employee why the earnings for the
company next quarter could be markedly poorer than expected
B) The employee's spouse works in the corporate headquarters and shares with him a
conversation overheard at work regarding possible acquisition targets.
C) The employees neighbor works for the government and informs him that the
government will award a major contract to the company next month. - Correct Answer-
An independent securities analyst explains to the employee why the earnings for the
company next quarter could be markedly poorer than expected.
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items except:
A) gifts
B)meals
C) commisions
D) lodging - Correct Answer-Commissions
The call provision of a bond stipulates which of the following factors?
A) maturity date
B) Call date and call price
C) Original issue discount
D) Coupon rate and call date - Correct Answer-Call dat and call price
When selling a fixed amount of a base currency to purchase a counter currency, which
of the following factors is primarily used to determine how much of the counter currency
the customer will receive?
A) The spot exchange rate
B) The counter currency inflation rate
C) The trade balance between the two countries - Correct Answer-The spot exchange
rate
, All of the following risks apply to both foreign and domestic debt instruments except:
A) Political
B) Exchange
C) Repayment
D) Interest rate - Correct Answer-Exchange
A customer is an officer of a company that is involved in some significant changes. All of
the following items are examples of corporate affairs that could be considered inside
information if the customer shares them with his registered representative except:
A) Pending transactions
B) Declared stock dividend
C) Top management changes
D) Imminent financial liquidity - Correct Answer-Declared stock dividend
When is interest on Treasury notes paid?
A) Quarterly
B) Semiannually
C) Annually - Correct Answer-Semiannually
Upon expiration, all in-the-money S&P 100 index call options are settled by delivery of
which of the following?
A) Cash
B) S&P exchange-traded fund
C) S&P 100 index shorts - Correct Answer-Cash
At the time of issuance, which of the following securities normally has the longest period
to expiration?
A) Rights
B) Warrants
C) Options - Correct Answer-Warrants
Which of the following Form U4 reportable events results in a statutory disqualification
A) A felony conviction for a driving under the influence (DUI) charge
B) A written customer complaint alleging misappropriation of assets
C) A personal bankruptcy filing
D) A written customer complaint alleging misappropriation of assets - Correct Answer-A
felony conviction for a driving under the influence (DUI)An inves
