FINRA Practice SIE Exam Questions
and Answers | Latest Version |
2025/2026 | Correct & Verified
What is the primary role of FINRA?
A) Insuring brokerage accounts
✔✔B) Regulating broker-dealers and registered representatives
C) Setting interest rates
D) Approving corporate mergers
Which product represents ownership in a corporation?
A) Corporate bond
✔✔B) Common stock
C) Certificate of deposit
D) Treasury bill
Which market involves trading newly issued securities?
✔✔A) Primary market
B) Secondary market
C) Over-the-counter market
D) Auction market
Which of the following is considered a debt security?
1
,A) Preferred stock
✔✔B) Corporate bond
C) Common stock
D) ETF
What does diversification primarily help reduce?
A) Systematic risk
✔✔B) Unsystematic risk
C) Inflation risk
D) Interest rate risk
Which organization insures bank deposits up to certain limits?
A) SIPC
✔✔B) FDIC
C) FINRA
D) SEC
A bond’s face value is also known as its:
A) Market price
✔✔B) Par value
C) Yield
D) Discount rate
2
,Which investment typically has the highest potential return over time?
A) Treasury bills
B) Corporate bonds
✔✔C) Common stocks
D) Money market funds
What does SIPC protect investors against?
A) Market losses
✔✔B) Broker-dealer insolvency
C) Poor investment advice
D) Inflation
Which risk affects the entire market and cannot be diversified away?
✔✔A) Systematic risk
B) Business risk
C) Credit risk
D) Liquidity risk
Which security pays interest at a stated rate?
A) Common stock
B) ETF
✔✔C) Bond
D) Option
3
, What type of order is executed immediately at the best available price?
✔✔A) Market order
B) Limit order
C) Stop order
D) Stop-limit order
A limit order guarantees:
A) Execution
✔✔B) Price
C) Immediate trade
D) Profit
Which statement best describes a mutual fund?
A) Trades intraday like a stock
✔✔B) Pools investor money to buy securities
C) Is guaranteed by the government
D) Has no management fees
What is the stated interest rate on a bond called?
A) Yield
B) Current yield
✔✔C) Coupon rate
4
and Answers | Latest Version |
2025/2026 | Correct & Verified
What is the primary role of FINRA?
A) Insuring brokerage accounts
✔✔B) Regulating broker-dealers and registered representatives
C) Setting interest rates
D) Approving corporate mergers
Which product represents ownership in a corporation?
A) Corporate bond
✔✔B) Common stock
C) Certificate of deposit
D) Treasury bill
Which market involves trading newly issued securities?
✔✔A) Primary market
B) Secondary market
C) Over-the-counter market
D) Auction market
Which of the following is considered a debt security?
1
,A) Preferred stock
✔✔B) Corporate bond
C) Common stock
D) ETF
What does diversification primarily help reduce?
A) Systematic risk
✔✔B) Unsystematic risk
C) Inflation risk
D) Interest rate risk
Which organization insures bank deposits up to certain limits?
A) SIPC
✔✔B) FDIC
C) FINRA
D) SEC
A bond’s face value is also known as its:
A) Market price
✔✔B) Par value
C) Yield
D) Discount rate
2
,Which investment typically has the highest potential return over time?
A) Treasury bills
B) Corporate bonds
✔✔C) Common stocks
D) Money market funds
What does SIPC protect investors against?
A) Market losses
✔✔B) Broker-dealer insolvency
C) Poor investment advice
D) Inflation
Which risk affects the entire market and cannot be diversified away?
✔✔A) Systematic risk
B) Business risk
C) Credit risk
D) Liquidity risk
Which security pays interest at a stated rate?
A) Common stock
B) ETF
✔✔C) Bond
D) Option
3
, What type of order is executed immediately at the best available price?
✔✔A) Market order
B) Limit order
C) Stop order
D) Stop-limit order
A limit order guarantees:
A) Execution
✔✔B) Price
C) Immediate trade
D) Profit
Which statement best describes a mutual fund?
A) Trades intraday like a stock
✔✔B) Pools investor money to buy securities
C) Is guaranteed by the government
D) Has no management fees
What is the stated interest rate on a bond called?
A) Yield
B) Current yield
✔✔C) Coupon rate
4
