FINRA SIE FINAL EXAM | QUESTIONS AND
VERIFIED ANSWERS RATED A+ | 100%
CORRECT | 2025/2026 GUIDE
If a market maker posts a quote of 10.00 - 10.10 [25x10], which of the
following actions is the market maker willing to take?
A. sell 1000 shares at $10 and buy 2500 shares at $10.10
B. buy 2500 shares at $10 and sell 1000 shares at $10.10
C. sell 100 shares at $10 and buy 250 shares at $10.10
D. buy 250 shares at $10 and sell 100 shares at $10.10
- Correct Answer - B
Roth 401(k) and Roth individual retirement account (IRA) plans are
which of the following features?
A. contributions are made pretax
B. neither account has maximum contribution limits
C. neither account is subject to early distribution penalties
D. qualified distributions are excluded from federal income tax
- Correct Answer - D
A member of a stock exchange responsible for providing liquidity in a
security by being willing to buy and sell at all times is known as:
,A. a broker
B. an underwriter
C. a market maker
D. a transfer agent
- Correct Answer - C
Which of the following actions violates FINRA rules regarding selling
away?
A. recommending to a customer the services of another broker-dealer
(BD)
B. sharing commissions with another registered representative in the
same BD
C. advising customers to buy mutual funds at amounts just below a
discount level
D. engaging in private securities transactions without written prior
consent of the employing BD
- Correct Answer - D
Which of the following statements is true about all U.S. government
agency issues?
A. they are exempt from federal taxes
B. they are exempt from registration under the Securities Act of 1933
, C. they are issued in bearer form only
D. they are general obligations of the federal government
- Correct Answer - B
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 neighbor works for the government and informs him
that the government will award a major contract to the company next
month
C. the employee's spouse works in the corporate headquarters and
shares with him a conversation overheard at work regarding possible
acquisition targets
D. a coworker informs the employee of a conversation he had with the
administrative assistant to the company's general counsel regarding key
developments in an ongoing class action lawsuit
- Correct Answer - A
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:
VERIFIED ANSWERS RATED A+ | 100%
CORRECT | 2025/2026 GUIDE
If a market maker posts a quote of 10.00 - 10.10 [25x10], which of the
following actions is the market maker willing to take?
A. sell 1000 shares at $10 and buy 2500 shares at $10.10
B. buy 2500 shares at $10 and sell 1000 shares at $10.10
C. sell 100 shares at $10 and buy 250 shares at $10.10
D. buy 250 shares at $10 and sell 100 shares at $10.10
- Correct Answer - B
Roth 401(k) and Roth individual retirement account (IRA) plans are
which of the following features?
A. contributions are made pretax
B. neither account has maximum contribution limits
C. neither account is subject to early distribution penalties
D. qualified distributions are excluded from federal income tax
- Correct Answer - D
A member of a stock exchange responsible for providing liquidity in a
security by being willing to buy and sell at all times is known as:
,A. a broker
B. an underwriter
C. a market maker
D. a transfer agent
- Correct Answer - C
Which of the following actions violates FINRA rules regarding selling
away?
A. recommending to a customer the services of another broker-dealer
(BD)
B. sharing commissions with another registered representative in the
same BD
C. advising customers to buy mutual funds at amounts just below a
discount level
D. engaging in private securities transactions without written prior
consent of the employing BD
- Correct Answer - D
Which of the following statements is true about all U.S. government
agency issues?
A. they are exempt from federal taxes
B. they are exempt from registration under the Securities Act of 1933
, C. they are issued in bearer form only
D. they are general obligations of the federal government
- Correct Answer - B
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 neighbor works for the government and informs him
that the government will award a major contract to the company next
month
C. the employee's spouse works in the corporate headquarters and
shares with him a conversation overheard at work regarding possible
acquisition targets
D. a coworker informs the employee of a conversation he had with the
administrative assistant to the company's general counsel regarding key
developments in an ongoing class action lawsuit
- Correct Answer - A
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:
