SIE Exam - Finra Example Questions
and Answers 100% Pass
In which of the follow situations is an employee of a public company permitted to
trade upon information without violating insider trading laws - CORRECT
ANSWER-An independent securities analyst explains for the company next
quarter could be markedly poorer than expected
Under rule 144A, an issuer of a restricted stock is permitted to sell to which of the
following investors - CORRECT ANSWER-Qualified Institutional Buyers (QIBs)
A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take - CORRECT
ANSWER-Send written notice to his supervisor outlining the activity and
compensation structure
Direct Participation Programs (DPP) provide: - CORRECT ANSWER-exposure
to non-correlated assets with steady returns
A decline is the gross domestic product (GDP) must last for at least how many
quarters to be considered a recession - CORRECT ANSWER-2
, Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution - CORRECT
ANSWER-A primary distribution involves a sale of newly issued shares by the
issuer while a secondary distribution involved the sale of already issued and
outstanding shares
A customer has a cash balance in her account together with long positions in
several securities. She has made no securities transactions in the account during the
past 18 months. How often must the firm send her an account statement -
CORRECT ANSWER-Quarterly
Which of the following communications with the public is considered misleading -
CORRECT ANSWER-Literature providing 10-year performance information to
support predictions of future performance
Which of the following form U4 reportable events results in a statutory
disqualification - CORRECT ANSWER-A felony conviction for a driving under
the influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life
insurance policy - CORRECT ANSWER-Market risk
Which of the following stakeholders has first claim priority in a Chapter 11
proceeding - CORRECT ANSWER-Secured debt holder
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
and Answers 100% Pass
In which of the follow situations is an employee of a public company permitted to
trade upon information without violating insider trading laws - CORRECT
ANSWER-An independent securities analyst explains for the company next
quarter could be markedly poorer than expected
Under rule 144A, an issuer of a restricted stock is permitted to sell to which of the
following investors - CORRECT ANSWER-Qualified Institutional Buyers (QIBs)
A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take - CORRECT
ANSWER-Send written notice to his supervisor outlining the activity and
compensation structure
Direct Participation Programs (DPP) provide: - CORRECT ANSWER-exposure
to non-correlated assets with steady returns
A decline is the gross domestic product (GDP) must last for at least how many
quarters to be considered a recession - CORRECT ANSWER-2
, Which of the following comparisons best describes the essential difference
between a primary distribution and a secondary distribution - CORRECT
ANSWER-A primary distribution involves a sale of newly issued shares by the
issuer while a secondary distribution involved the sale of already issued and
outstanding shares
A customer has a cash balance in her account together with long positions in
several securities. She has made no securities transactions in the account during the
past 18 months. How often must the firm send her an account statement -
CORRECT ANSWER-Quarterly
Which of the following communications with the public is considered misleading -
CORRECT ANSWER-Literature providing 10-year performance information to
support predictions of future performance
Which of the following form U4 reportable events results in a statutory
disqualification - CORRECT ANSWER-A felony conviction for a driving under
the influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life
insurance policy - CORRECT ANSWER-Market risk
Which of the following stakeholders has first claim priority in a Chapter 11
proceeding - CORRECT ANSWER-Secured debt holder
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
