FINRA SIE PRACTICE TEST
QUESTIONS AND CORRECT
ANSWERS RATED A+ | LATEST
2025/2026 GUIDE
In the event of a stock-split, which of the _________ party is required to
maintain a record of the shareholders eligible to receive additional
shares. - Correct Answer - Transfer agent.
Direct Participation Programs (DPP's) provide: - Correct Answer -
Exposure to non-correlated assets with steady returns.
The following product is adversely impacted if the issuer's credit rating is
downgraded: - Correct Answer - Exchange traded notes (ETN's)
The owner of which of the following products is MOST exposed to
inflationary risk? - Correct Answer - Treasury Bonds have a higher
inflationary risk than Blue chip industries, T-Bills, or Utility stocks.
Which of the following considerations should a registered representative
explain t a customer when recommending a 529 college savings plan?
- Correct Answer - The potential deductibility of contributions from state
taxes.
, To offer its shareholders a privilege to obtain its shares at a fixed price,
which products does a corporation issue? - Correct Answer - Rights
Political campaign contribution limit? - Correct Answer - $250
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from from which party? -
Correct Answer - A registered principal of the RR's firm.
If a market maker post a quote of 10.00-10.10 (25x10) which of the
following actions is the market maker willing to take? - Correct Answer -
Buy 2,500 shares at $10.00 and sell 1,000 shares at 10.10.
A transaction in which a writer covers a position by purchasing an option
is called? - Correct Answer - A closing purchase.
Under Federal Reserve Regulation T, a 90-day restriction is imposed
when a customer opens and closes which of the following positions? -
Correct Answer - The same stock in a cash account without paying for
the stock in full.
Letter of Intent is valid for? - Correct Answer - 13 months
QUESTIONS AND CORRECT
ANSWERS RATED A+ | LATEST
2025/2026 GUIDE
In the event of a stock-split, which of the _________ party is required to
maintain a record of the shareholders eligible to receive additional
shares. - Correct Answer - Transfer agent.
Direct Participation Programs (DPP's) provide: - Correct Answer -
Exposure to non-correlated assets with steady returns.
The following product is adversely impacted if the issuer's credit rating is
downgraded: - Correct Answer - Exchange traded notes (ETN's)
The owner of which of the following products is MOST exposed to
inflationary risk? - Correct Answer - Treasury Bonds have a higher
inflationary risk than Blue chip industries, T-Bills, or Utility stocks.
Which of the following considerations should a registered representative
explain t a customer when recommending a 529 college savings plan?
- Correct Answer - The potential deductibility of contributions from state
taxes.
, To offer its shareholders a privilege to obtain its shares at a fixed price,
which products does a corporation issue? - Correct Answer - Rights
Political campaign contribution limit? - Correct Answer - $250
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from from which party? -
Correct Answer - A registered principal of the RR's firm.
If a market maker post a quote of 10.00-10.10 (25x10) which of the
following actions is the market maker willing to take? - Correct Answer -
Buy 2,500 shares at $10.00 and sell 1,000 shares at 10.10.
A transaction in which a writer covers a position by purchasing an option
is called? - Correct Answer - A closing purchase.
Under Federal Reserve Regulation T, a 90-day restriction is imposed
when a customer opens and closes which of the following positions? -
Correct Answer - The same stock in a cash account without paying for
the stock in full.
Letter of Intent is valid for? - Correct Answer - 13 months
