STC SIE Exam Final Practice Questions with
100% Correct Answers Latest Version 2025
Graded A+
1. The Options Clearing Corporation (OCC) is responsible for each of the
following activities for listed options, EXCEPT:
A. Issuing options
B. Guaranteeing options.
C. Clearing options
D. Settling transactions with customers: D. Settling transactions with
customers
2. Which of the following terms is associated with an entity that sells
securities from its own inventory?
A. Broker
,B. Investment adviser
C. Market maker
D. Dark pool: C. Market maker
3. An officer of a company has purchased stock of her company in the open
market. Before selling the stock, for how long must she hold the stock?
A. There is no holding period.
B. Three months
C. Six months
D. One year: A. There is no holding period.
4. Investors who buy GNMA securities are not subject to which of the
following risks?
A. Reinvestment risk
B. Credit risk
C. Prepayment risk
,D. Capital risk: B. Credit risk
5. How does a Roth IRA differ from a traditional IRA?
A. Earnings are tax-deferred
B. Qualifying distributions are tax-free.
C. Distributions may be made due to disability and to pay qualified first-time
homebuyer expenses.
D. Tax-free distributions are available at any time after five years of
participa-tion.: B. Qualifying distributions are tax-free.
6. An investor purchases a 20-year 5.30% bond at par value that will yield
5.75% if called at the first call date in five years. The yield to maturity on the
bond is:
A. 5.30%
B. More than 5.30%
, C. Between 5.30% and 5.75%
D. 5.75%: A. 5.30%
7. As it relates to private securities transactions that are executed by an
associated person of a broker-dealer, compensation does NOT include:
A. Being paid a commission by the employing broker-dealer
B. Being paid a commission by another broker-dealer
C. Receiving tax benefits received by the employee
D. Being given warrants by another firm: A. Being paid a commission by the
employing broker-dealer
8. A convertible bond has a conversion price of $50 and is currently selling
in the market at $1,100. The conversion ratio is:
A. 20
B. 22
C. 55
100% Correct Answers Latest Version 2025
Graded A+
1. The Options Clearing Corporation (OCC) is responsible for each of the
following activities for listed options, EXCEPT:
A. Issuing options
B. Guaranteeing options.
C. Clearing options
D. Settling transactions with customers: D. Settling transactions with
customers
2. Which of the following terms is associated with an entity that sells
securities from its own inventory?
A. Broker
,B. Investment adviser
C. Market maker
D. Dark pool: C. Market maker
3. An officer of a company has purchased stock of her company in the open
market. Before selling the stock, for how long must she hold the stock?
A. There is no holding period.
B. Three months
C. Six months
D. One year: A. There is no holding period.
4. Investors who buy GNMA securities are not subject to which of the
following risks?
A. Reinvestment risk
B. Credit risk
C. Prepayment risk
,D. Capital risk: B. Credit risk
5. How does a Roth IRA differ from a traditional IRA?
A. Earnings are tax-deferred
B. Qualifying distributions are tax-free.
C. Distributions may be made due to disability and to pay qualified first-time
homebuyer expenses.
D. Tax-free distributions are available at any time after five years of
participa-tion.: B. Qualifying distributions are tax-free.
6. An investor purchases a 20-year 5.30% bond at par value that will yield
5.75% if called at the first call date in five years. The yield to maturity on the
bond is:
A. 5.30%
B. More than 5.30%
, C. Between 5.30% and 5.75%
D. 5.75%: A. 5.30%
7. As it relates to private securities transactions that are executed by an
associated person of a broker-dealer, compensation does NOT include:
A. Being paid a commission by the employing broker-dealer
B. Being paid a commission by another broker-dealer
C. Receiving tax benefits received by the employee
D. Being given warrants by another firm: A. Being paid a commission by the
employing broker-dealer
8. A convertible bond has a conversion price of $50 and is currently selling
in the market at $1,100. The conversion ratio is:
A. 20
B. 22
C. 55
