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FINRA SIE EXAM NEWEST 2025/ 2026 ACTUAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||NEWEST EXAM!!!
What is the difference between a selling group and selling
syndicate? - ANSWER-The primary difference between an
underwriting syndicate member and a selling group
member in a firm commitment underwriting is that: the
syndicate assumes liability for unsold shares; the selling
group does not.
Stabilizing is a term generally used in Wall Street to refer
to the practice of: - ANSWER-maintaining a market price
at or near the public offering price (POP) of a new issue
for the sole purpose of protecting the stock from decline
during a new offering.
Regulation SHO severely restricts short selling during the
cooling offer period of a follow-on offering. Which of the
below is true? - ANSWER-an investor may buy the new
issue shares on the offering so long as any short sale has
been covered at least one business day prior to the
effective date.
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The maximum coverage offered per separate customer
under SIPC insurance was set by Congress at: -
ANSWER-$250k in securities and cash coverage
Recommending a limited partnership DPP investment to a
customer would be a defendable recommendation for a
client: - ANSWER-seeking flow-through tax benefits, who
is not risk averse, and who does not have an immediate
need for liquidity
Exercise of an equity put option involves the writer: -
ANSWER-buying the underlying instrument at the strike
price
The hours of operation of the Chicago Board Options
Exchange are: - ANSWER-8:30 am to 3:00 pm CT
A customer complaint is formally defined as a: -
ANSWER-any written communication from a customer or
legal rep of a customer regarding an allegation of a
violation of one or more securities rules or federal
regulations
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The least liquidity in the securities shown below would be
found: - ANSWER-in securities traded on the Pink Quote
system
Sweeteners as that term is used in the investment banking
community refers to issue enhancements which include: -
ANSWER-warrants, insurance, & convertibility: these all
make a bond more attractive from a client's point of view
Which of the following investment instruments trades on
an exchange at a market price NOT directly related to its
net asset value? - ANSWER-closed-end investment
company
Among the differences between an introducing broker-
dealer and a clearing carrying broker-dealer is that
clearing firms: - ANSWER-Maintain possession and
control of securities and introducing firms do not.
Define introducing broker-dealer. - ANSWER-an individual
or organization that solicits or accepts orders to buy or sell
futures contracts, forex, commodity options, or swaps but
does not accept money or other assets from customers to
support these orders
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Define clearing carrying broker-dealer: - ANSWER-the
member firm that has been identified in the System as
principal for clearing and settling a trade, whether for its
own account or for a correspondent firm
Pre-emptive Rights and Stock Warrants have a number of
similarities. Which of the below represent characteristics
these products have in common?
I. Each has a fixed price at which the holder may purchase
shares of the issuer's common stock.
II. The fixed exercise price for both products is initially set
at a level below the current market value of the common
stock.
III. These products are tradable on securities exchanges
IV. Both have relatively short-term expiration dates -
ANSWER-I and III
When reviewing the definitions of broker-dealers and
investment advisers, one would find that: - ANSWER-
Broker-dealers can engage in securities transactions for
compensation. ; Investment advisers engage in providing
advice relating to the advisability of investing or not
investing in securities for compensation. ; An investment
FINRA SIE EXAM NEWEST 2025/ 2026 ACTUAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||NEWEST EXAM!!!
What is the difference between a selling group and selling
syndicate? - ANSWER-The primary difference between an
underwriting syndicate member and a selling group
member in a firm commitment underwriting is that: the
syndicate assumes liability for unsold shares; the selling
group does not.
Stabilizing is a term generally used in Wall Street to refer
to the practice of: - ANSWER-maintaining a market price
at or near the public offering price (POP) of a new issue
for the sole purpose of protecting the stock from decline
during a new offering.
Regulation SHO severely restricts short selling during the
cooling offer period of a follow-on offering. Which of the
below is true? - ANSWER-an investor may buy the new
issue shares on the offering so long as any short sale has
been covered at least one business day prior to the
effective date.
,2|Page
The maximum coverage offered per separate customer
under SIPC insurance was set by Congress at: -
ANSWER-$250k in securities and cash coverage
Recommending a limited partnership DPP investment to a
customer would be a defendable recommendation for a
client: - ANSWER-seeking flow-through tax benefits, who
is not risk averse, and who does not have an immediate
need for liquidity
Exercise of an equity put option involves the writer: -
ANSWER-buying the underlying instrument at the strike
price
The hours of operation of the Chicago Board Options
Exchange are: - ANSWER-8:30 am to 3:00 pm CT
A customer complaint is formally defined as a: -
ANSWER-any written communication from a customer or
legal rep of a customer regarding an allegation of a
violation of one or more securities rules or federal
regulations
,3|Page
The least liquidity in the securities shown below would be
found: - ANSWER-in securities traded on the Pink Quote
system
Sweeteners as that term is used in the investment banking
community refers to issue enhancements which include: -
ANSWER-warrants, insurance, & convertibility: these all
make a bond more attractive from a client's point of view
Which of the following investment instruments trades on
an exchange at a market price NOT directly related to its
net asset value? - ANSWER-closed-end investment
company
Among the differences between an introducing broker-
dealer and a clearing carrying broker-dealer is that
clearing firms: - ANSWER-Maintain possession and
control of securities and introducing firms do not.
Define introducing broker-dealer. - ANSWER-an individual
or organization that solicits or accepts orders to buy or sell
futures contracts, forex, commodity options, or swaps but
does not accept money or other assets from customers to
support these orders
, 4|Page
Define clearing carrying broker-dealer: - ANSWER-the
member firm that has been identified in the System as
principal for clearing and settling a trade, whether for its
own account or for a correspondent firm
Pre-emptive Rights and Stock Warrants have a number of
similarities. Which of the below represent characteristics
these products have in common?
I. Each has a fixed price at which the holder may purchase
shares of the issuer's common stock.
II. The fixed exercise price for both products is initially set
at a level below the current market value of the common
stock.
III. These products are tradable on securities exchanges
IV. Both have relatively short-term expiration dates -
ANSWER-I and III
When reviewing the definitions of broker-dealers and
investment advisers, one would find that: - ANSWER-
Broker-dealers can engage in securities transactions for
compensation. ; Investment advisers engage in providing
advice relating to the advisability of investing or not
investing in securities for compensation. ; An investment
