FINRA SIE TEST FINAL EXAM GUIDE |QUESTIONS 2025/2026 | UPDATED VERSION COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+

FINRA SIE TEST FINAL EXAM GUIDE |QUESTIONS 2025/2026 | UPDATED VERSION COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+ Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid for what maximum period of time? - ANSWER 13 months Special tax bonds would not include revenue from which source? A. Sales Tax B. Fuel Tax C. Tobacco Tax D. Ad valorem taxes - ANSWER D. Ad valorem taxes Johnny Jackson has a discretionary account with Big Brokerage. Which of the following is true about the account? A. The securities in Johnny's account cannot be hypothecated B. Each order placed in Johnny's account must be approved by a principal prior to execution C. The securities in Johnny's account cannot be rehypothecated D. Each order ticket must be reviewed by a principal, and principal review must be done frequently - ANSWER D. Each order ticket must be reviewed by a principal, and principal review must be done frequently A customer has the following position: Short XYZ Jan 50 put @ 6 What do you know is true about the position? A. It is bearish B. It is out-of-the money C. It is bullish D. It is in-the-money - ANSWER C. It is bullish What type of bonds are designed to give a bank incentive to invest in a local community? A. General obligation municipal bonds B. All municipal bonds C. Revenue municipal bonds D. Bank qualified municipal bonds - ANSWER D. Bank qualified municipal bonds What is the purpose of a company's income statement for potential investors? A. the income statement gives investors details on the company's liabilities B. the income statement forecasts future earnings growth C. the income statement gives investors information as to whether the company has been profitable during a specified period of time D. the income statement gives investors the company's net worth - ANSWER C. the income statement gives investors information as to whether the company has been profitable during a specified period of time After a bond counsel has examined all the information about an issuance, it might do which of the following: I. Issue an unqualified legal opinion stating that the bond does not qualify to be legally issued. II. Issue an unqualified legal opinion stating that the bond meets all legal requirements. III. Issue a qualified legal opinion stating that the bond qualifies to be legally issued. IV. Issue a qualified legal opinion because certain financial information is missing from the official statement. A. I and IV B. I and III C. II and III D. II and IV - ANSWER D. II and IV Which of the following are correct dollar minimums for the Bank Secrecy Act's requirebroker-dealersments for ? I. A purchase of a monetary instrument valued at $3,000 to $10,000 must be recorded in a monetary instrument log (MIL). II. A purchase of a monetary instrument valued at $5,000 to $10,000 must be recorded in a monetary instrument log (MIL). III. Cash transactions of $5,000 or more in one day must be reported to FinCEN. IV. Cash transactions of $10,000 or more in one day must be reported to FinCEN. A. I and III B. II and III C. I and IV D. II and IV - ANSWER C. I and IV Which of the following investment types would be least suitable for an investor who has liquidity as a primary investing goal? A. Common stock issued by a small-cap company B. Shares issued by a mutual fund C. Securities issued under Regulation D D. Securities issued under Regulation A - ANSWER C. Securities issued under Regulation D Which of the following would generally occur as a result of an economic downturn? I. Increasing foreign trade deficits II. Declining Producer Price Index III. Increase in non-farm payroll IV. Declining unemployment A. I and II B. I and IV C. II and III D. III and IV - ANSWER A. I and II Pat has an IRA, and so does Pat's non-working spouse. They are both 50 years of age. How much may Pat contribute in total to the two IRAs? A. $7,000 B. $12,000 C. $6,000 D. $14,000 - ANSWER D. $14,000 When a registered person ends his service with a broker-dealer, the firm must file which of the following forms with FINRA? A. Form U-5 B. Form CRD C. Form U-4 D. Form BD - ANSWER A. Form U-5 Which of the following employees of BB Brokerage must register with FINRA? A. Janet, who works in a clerical capacity B. Micah, who works in customer service but who sometimes accepts securities orders C. Kathleen, who works in IT D. Reba, who serves as general counsel and does not supervise other employees - ANSWER B. Micah, who works in customer service but who sometimes accepts securities orders How does the discount rate differ from the Federal Funds rate? A. The discount rate is only applied to loans offered by the Fed B. The discount rate is set by the Federal Reserve Bank C. The discount rate is not used by banks as a regular source of funding D. All of the above - ANSWER D. All of the above Under FINRA rules, which of the following activities by a registered representative requires written notification to her firm? - ANSWER Driving part time for a transportation network company on weekends A member of the stock exchange is responsible for providing liquidity and security by being willing to buy and sell at times is known as - ANSWER No load mutual funds may have lower expense ratios and load mutual funds for which of the following reasons - ANSWER no load mutual funds are not permitted to charge a 12b-1 fee greater than 25 basis point. And associated person who is not a registered representative is permitted to engage in which of the following activities - ANSWER provide account opening forms to a new customer Which of the following represents the fact of a stock split - ANSWER Price per share decreases A company announces a tender offer to a shareholders with an intent to buy a maximum of 1 million shares of its outstanding stock at a $10 per share and says no minimum on the numbers of shares to be purchased an investor wants to participate in this offer and intends to tender his 1000 share position at the close of the offer. Only 900,000 shares have been tendered how many if any of the investor shares will the company purchase - ANSWER Which of the following statements is true about all US government agency issues - ANSWER They are exempt fro registration under the Securities Act of 1933 Futures Investments - ANSWER Contracts to buy/sell assets at future dates. Placing Orders - ANSWER Instructions to buy or sell futures contracts. Clearing - ANSWER Process of settling trades between parties. Exchange Regulation - ANSWER Oversight of trading activities by exchanges. Speculation - ANSWER Trading to profit from price changes. Hedging - ANSWER Risk management strategy to offset losses. Spreads - ANSWER Simultaneous buying/selling of related futures. Interest Rate Futures - ANSWER Contracts based on future interest rate movements. Stock Index Futures - ANSWER Futures based on stock market indices Trial Questions - ANSWER Unscored questions testing potential future exam content. Which types of orders are reduced for cash dividends? I. buy limit II. buy stop III. sell limit IV. sell stop A. II and IV B. I and III C. I and IV D. I and II - ANSWER C. I and IV Which type of bond may have a statutory debt limit? A. revenue bond B. GO bond C. special tax bond D. moral obligation bond - ANSWER B. GO bond For people below the age of 50, the maximum amount that an employee can contribute to a 401(k) plan in 2022 is: A. $18,000 B. $15,000 C. $20,500 D. $10,500 - ANSWER C. $20,500 Which of the following is held in a special memorandum account? A. Non-marginable securities B. Excess equity C. Margin securities D. Hypothecated securities - ANSWER B. Excess equity Firms must disclose to customers how their business continuity plans address potential business disruptions and how they will respond to various events. This disclosure is required: I. When a customer opens an account II. Upon request III. Quarterly IV. Annually A. I and IV B. II and IV C. II and III D. I and II - ANSWER D. I and II Miriam, a newly married customer, provides your office with an official copy of her marriage certificate and requests to change the name on her account. Who could authorize this change for her? A. Her representative B. Any representative C. A designated principal D. Clerical staff - ANSWER C. A designated principal When a customer complaint involving theft is made against an associated person of the firm, which of the following is true? A. The firm needs to report the claim to FINRA within 30 days of the earlier of the date that the firm or the date that the registered representative found out about the event. B. The firm only needs to report the claim if it involves damages of over $15,000. C. The firm needs to report the claim to FINRA within 30 days of when it found out about the event. D. The firm needs to report the claim to FINRA as soon as it finds out about the event. - ANSWER C. The firm needs to report the claim to FINRA within 30 days of when it found out about the event. Irving Investor begins to notice that his broker, Buddy L. Weill, has begun placing an inordinate number of trades in his account lately, and his account value hasn't risen as a result. Buddy could be: A. front-running B. selling away C. selling dividends D. churning - ANSWER D. churning Who regulates the extension of margin for securities? A. FINRA B. FRB C. Exchanges D. All of the other choices - ANSWER D. All of the other choices For Municipal bonds, the Final Official Statement: A. Contains no information about the price of the issue or interest rates B. Must be submitted by the underwriter to EMMA C. May be identical to the preliminary official statement if no changes are made after review D. Cannot be amended - ANSWER B. Must be submitted by the underwriter to EMMA In a/an _____________underwriting, the underwriter sells all the shares in the offering or the offering is voided. A. Mini-max B. All or none C. Best efforts D. Firm commitment - ANSWER B. All or none Immediate Results - ANSWER Instant feedback on exam performance after completion. Exam History - ANSWER Record of past exam attendance and results. Instructional Phrases - ANSWER Guidelines within questions to aid understanding. Story Problems - ANSWER Complex questions requiring careful information extraction. Test Center - ANSWER Location where the exam is administered. Under federal rules non-cash compensation connected with the sale of their bowl contracts include all the following items except - ANSWER Registered representative wants to participate in private securities transaction which of the following must the RR take - ANSWER Which of the following stakeholders has first claim priority in the Chapter 11 proceeding - ANSWER Secured Debt holders At issue which of the following debt securities mature in one year or less - ANSWER Money Market Instruments Which of the following investment and this is the greatest risk in a variable life insurance policy - ANSWER Market risk Company ABC in art is a 20% stocked of inference common shareholders if the customer holds 1000 shares at $50 what is the new price and number of shares following the payment of the stock dividend - ANSWER 1000 The customer has a cash balance in our account together with long positions in several securities she has made no securities transactions in the counter in the past 18 months how often was the From center in account statement - ANSWER Quarterly Which of the following outcomes are possible for the writer of the covered call option - ANSWER Which of the following statements is true regarding a customer account held as tenants in common - ANSWER The ownership of the decedents assets is governed by their will of state law. A registered representative who wants to place a mutual fund advertisement mass obtained written approval from which of the following parties. - ANSWER I registered representative is reviewing the following portfolio: 30% ABC energy company, 30% XYZ healthcare company, 30% exchange traded fund track in the S&P 500, 10% money market funds, which of the following risks is inherent in this portfolio. - ANSWER Nonsystematic A customer is an officer of the company that is involved in some significant changes on the following items are examples of corporate affairs it could be considered inside information if the customer shares with his registered representative except. - ANSWER Stability in the value of a debt portfolio is greatest when - ANSWER Maturities of the debt securities are short Under normal circumstances and investors letter of intent on a mutual fund purchase is valid for what maximum period of time - ANSWER 13 months Call protection is most valuable to a bond owner when a bond price is generally - ANSWER Which of the following actions is required when a firm receives cash in excess of $10,000 from one customer in one business day. - ANSWER CTR Under system of statutory voting a common stockholders as many votes for each vacancy on the board of directors as the number of - ANSWER Shares owned by the stockholder Under SEC regulation S - P consumer privacy which of the following information must affirm include in its customer privacy and opt out notices - ANSWER Policies to protect the security of non public information Which of the following investments are generally traded according to their average life rather than their stated maturity dates - ANSWER Asset-Backed Securities Reimbursing customers for their investment losses is: A. always prohibited B. acceptable if the client is an accredited investor C. only acceptable for hedge fund customers D. prohibited unless a written contract is signed by both the customer and a principal - ANSWER A. always prohibited In a company, which of the following represents the interests of shareholders? A. Board of directors B. Compliance C. Underwriter D. Management - ANSWER A. Board of directors Which of these interest rates is generally the highest? A. Federal funds rate B. Discount rate C. Prime rate D. Broker call rate - ANSWER C. Prime rate An inverse ETF might be suitable for an investor A. Who wants to invest for the long-term B. Who anticipates a rising market C. Who is living on a fixed income D. Who wants to hedge against a drop in the stock market - ANSWER D. Who wants to hedge against a drop in the stock market Which regulatory entity establishes and interprets the rules that govern the overthe-counter markets? A. MSRB B. FINRA C. OTC Link D. NASAA - ANSWER B. FINRA An investor buys an ELP Aug 50 call at 2 and sells an ELP Aug 40 call at 6. This type of transaction is called a: A. credit call spread B. debit call spread C. credit put spread D. debit put spread - ANSWER A. credit call spread The par value of a company's preferred stock is: I. Always $100 per share II. Used to determine the claims of shareholders u