FINRA SIE EXAM | 60+ QUESTIONS
AND VERIFIED ANSWERS | RATED A+
| 2025/2026 GUIDE
Which of the following securities trade in the secondary market?
I Preferred
II American Depository Receipts
III Mutual Finds
IV Municipal Bonds - Correct Answer - I II and IV
Mutual Funds do NOT trade in the secondary market
A middle age woman widowed customer has an investment objective of
stable income and wants minimal market and liquidity risk. What type of
preferred stock would be the best recommendation
I Participating
II Convertible
III Straight Preferred Stock
IV Variable rate preferred - Correct Answer - IV Variable Rate
preferred
Bankers Acceptances
I Trade at a Premium to par
II Trade at a discount to par
III Have a thinly traded market
IV Have an active market - Correct Answer - II and III
,They trade at a slight discount and are not traded actively
Which of the following is needed to compute the total dollar price of a
municipal bond traded on a yield bases in the secondary market?
I Dated Date
II Maturity Date
III Call Date
IV Put Date - Correct Answer - Maturity and Call Date are the only
ones needed
The money that bank has in excess of reserves is called the?
I Clearing house funds
II Federal Funds
III Money Market Funds
IV Available Funds - Correct Answer - II Federal Funds
An Open ended fund have a NAV of $10/share. The minimum purchase
price is?
I $10
II $10 plus commission
III The market price
IV The market price plus commission - Correct Answer - I $10
If a fund distributes a capital gain to shareholders which statements are
true
I The capital gain is taxable if taken as a check
II The capital gain is not taxable if taken as a check
III The capital gain is taxable if it is auto reinvested
, IV The capital gain is not taxable if it is auto reinvested - Correct
Answer - I and III
The capital gain is taxable either way because it is distributed
Which of the following are types of Oil and Gas direct participation
programs?
I Exploratory
II Income
III Balanced
IV Combination - Correct Answer - I II and IV
Balanced is not a DPP
What benefits do oil drilling programs provide? - Correct Answer -
Intangible drilling costs are 100% deductible in the year the drilling takes
place
These programs give an immediate deduction
Which is most subject to reinvestment risk?
I Zero Coupon Bonds
II Low Coupon Bonds
III Medium Coupon Bonds
IV High Coupon Bonds - Correct Answer - IV High Coupon bonds are
the most susceptible to reinvestment risk
A customer places an to buy bonds. The order reads
AND VERIFIED ANSWERS | RATED A+
| 2025/2026 GUIDE
Which of the following securities trade in the secondary market?
I Preferred
II American Depository Receipts
III Mutual Finds
IV Municipal Bonds - Correct Answer - I II and IV
Mutual Funds do NOT trade in the secondary market
A middle age woman widowed customer has an investment objective of
stable income and wants minimal market and liquidity risk. What type of
preferred stock would be the best recommendation
I Participating
II Convertible
III Straight Preferred Stock
IV Variable rate preferred - Correct Answer - IV Variable Rate
preferred
Bankers Acceptances
I Trade at a Premium to par
II Trade at a discount to par
III Have a thinly traded market
IV Have an active market - Correct Answer - II and III
,They trade at a slight discount and are not traded actively
Which of the following is needed to compute the total dollar price of a
municipal bond traded on a yield bases in the secondary market?
I Dated Date
II Maturity Date
III Call Date
IV Put Date - Correct Answer - Maturity and Call Date are the only
ones needed
The money that bank has in excess of reserves is called the?
I Clearing house funds
II Federal Funds
III Money Market Funds
IV Available Funds - Correct Answer - II Federal Funds
An Open ended fund have a NAV of $10/share. The minimum purchase
price is?
I $10
II $10 plus commission
III The market price
IV The market price plus commission - Correct Answer - I $10
If a fund distributes a capital gain to shareholders which statements are
true
I The capital gain is taxable if taken as a check
II The capital gain is not taxable if taken as a check
III The capital gain is taxable if it is auto reinvested
, IV The capital gain is not taxable if it is auto reinvested - Correct
Answer - I and III
The capital gain is taxable either way because it is distributed
Which of the following are types of Oil and Gas direct participation
programs?
I Exploratory
II Income
III Balanced
IV Combination - Correct Answer - I II and IV
Balanced is not a DPP
What benefits do oil drilling programs provide? - Correct Answer -
Intangible drilling costs are 100% deductible in the year the drilling takes
place
These programs give an immediate deduction
Which is most subject to reinvestment risk?
I Zero Coupon Bonds
II Low Coupon Bonds
III Medium Coupon Bonds
IV High Coupon Bonds - Correct Answer - IV High Coupon bonds are
the most susceptible to reinvestment risk
A customer places an to buy bonds. The order reads
