FINRA WEBSITE SIE PRACTICE EXAM
QUESTIONS AND DETAILED ANSWERS.
EXPERT VERIFIED FOR GUARANTEED
PASS.
Under the Securities act of 1933, registration is required for which of the following securities?
A. Eurodollar bonds
B. Municipal securities
C. American Depositary Receipts (ADRs)
D. Securities issued by the federal government - ANS C. American Depositary Receipts
Which of the following outcomes are possible for the writer of a covered call option?
A. Profit limited and loss limited
B. Profit limited and loss unlimited
C. Profit unlimited and loss limited
D. Profit unlimited and loss unlimited - ANS A. Profit limited and loss limited
A registered representative (RR) who wants to place a mutual fund advertisement must obtain
written approval from which of the following parties?
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, A. FINRA
B. Each State's securities administrator
C. A registered principal of the RR's firm
D. The investment management division of the appropriate regional SEC office - ANS C. A
registered principal of the RR's firm
An investor owns 100 shares of XYZ common stock at the current market price of $50 per share.
If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock position will be:
A. 50 shares at $25 per share
B. 50 shares at $100 per share
C. 200 shares at $25 per share
D. 200 shares at $100 per share - ANS B. 50 shares at $100 per share
A firm is a participant in a public offering. To sell a substantial amount of the securities to its
customers, the firm agrees to repurchase the shares at no less than the original cales price.
Such agreements are:
A. Prohibited as fraudulent and manipulative
B. Permissible if the securities are deposite into escrow
C. Prohibited unless the firm immediately sets aside funds for the repurchase
D. Permissible if the customers retain the right to sell the securities into the open market -
ANS A. Prohibited as fraudulent and manipulative
Which of the following security types provides investors with a stated security date, a floating
interest rate, and an option to put the security back to a financial intermediary on a dairy or
weekly basis?
A. Equity put option
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS AND DETAILED ANSWERS.
EXPERT VERIFIED FOR GUARANTEED
PASS.
Under the Securities act of 1933, registration is required for which of the following securities?
A. Eurodollar bonds
B. Municipal securities
C. American Depositary Receipts (ADRs)
D. Securities issued by the federal government - ANS C. American Depositary Receipts
Which of the following outcomes are possible for the writer of a covered call option?
A. Profit limited and loss limited
B. Profit limited and loss unlimited
C. Profit unlimited and loss limited
D. Profit unlimited and loss unlimited - ANS A. Profit limited and loss limited
A registered representative (RR) who wants to place a mutual fund advertisement must obtain
written approval from which of the following parties?
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, A. FINRA
B. Each State's securities administrator
C. A registered principal of the RR's firm
D. The investment management division of the appropriate regional SEC office - ANS C. A
registered principal of the RR's firm
An investor owns 100 shares of XYZ common stock at the current market price of $50 per share.
If XYZ conducts a 1-for-2 reverse stock split, the investor's post-split stock position will be:
A. 50 shares at $25 per share
B. 50 shares at $100 per share
C. 200 shares at $25 per share
D. 200 shares at $100 per share - ANS B. 50 shares at $100 per share
A firm is a participant in a public offering. To sell a substantial amount of the securities to its
customers, the firm agrees to repurchase the shares at no less than the original cales price.
Such agreements are:
A. Prohibited as fraudulent and manipulative
B. Permissible if the securities are deposite into escrow
C. Prohibited unless the firm immediately sets aside funds for the repurchase
D. Permissible if the customers retain the right to sell the securities into the open market -
ANS A. Prohibited as fraudulent and manipulative
Which of the following security types provides investors with a stated security date, a floating
interest rate, and an option to put the security back to a financial intermediary on a dairy or
weekly basis?
A. Equity put option
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
