Ultimate FINRA SIE Exam Prep 2026/2028
Update 300 Questions and Answers– Key
Concepts, Trading Rules, Risk Types, and
Regulatory Insights
The primary purpose of a syndicate desk in the context of an equity
offering is to:
build an order book and allocate the stock
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
Which of the following comparisons best describes the essential
difference between a primary distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer while
a secondary distribution involves the sale of already issued and outstanding
shares.
The computation of dollar prices and accrued interest on municipal bonds
is normally on what calendar basis?
30/360
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
,Call protection is most valuable to a bond owner when bond prices are
generally:
rising
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program?
Designating an AML compliance officer
Which of the following actions violates FINRA rules regarding selling
away?
Engaging in private securities transactions without written prior consent of the
employing BD
Company ABC announces a 20% stock dividend for its common
shareholders. If a customer holds 1,000 shares at $50.00, what is the new
price and number of shares following the payment of the stock dividend?
1,200 shares at $41.67
Roth 401(k) and Roth individual retirement account (IRA) plans share
which of the following features?
Qualified distributions are excluded from federal income tax
An associated person who is not a registered representative is permitted
to engage in which of the following activities?
Provide account opening forms to a new customer
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
, a premium
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from which of the following
parties?
A registered principal of the RR's firm
Under normal circumstances, a customer's letter of intent on a mutual
fund purchase is valid for what maximum period of time?
13 months
To offer its shareholders a privilege to obtain its shares at a fixed price,
which of the following products does a corporation issue?
Rights
The call provision of a bond stipulates which of the following factors?
Call date and call price
A decline in the gross domestic product (GDP) must last for at least how
many quarters to be considered a recession?
2 quarters
Regular way settlement on Treasury bonds is:
next business day
Which of the following statements is true regarding a customer account
held as tenants in common?
The ownership of the decedent's assets is governed by their will or state law.
Which of the following statements is true about treasury stock?
It is issued stock that has been subsequently reacquired by the corporation
Which of the following investment risks is the greatest risk in a variable
life insurance policy?
Update 300 Questions and Answers– Key
Concepts, Trading Rules, Risk Types, and
Regulatory Insights
The primary purpose of a syndicate desk in the context of an equity
offering is to:
build an order book and allocate the stock
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
Which of the following comparisons best describes the essential
difference between a primary distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer while
a secondary distribution involves the sale of already issued and outstanding
shares.
The computation of dollar prices and accrued interest on municipal bonds
is normally on what calendar basis?
30/360
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
,Call protection is most valuable to a bond owner when bond prices are
generally:
rising
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program?
Designating an AML compliance officer
Which of the following actions violates FINRA rules regarding selling
away?
Engaging in private securities transactions without written prior consent of the
employing BD
Company ABC announces a 20% stock dividend for its common
shareholders. If a customer holds 1,000 shares at $50.00, what is the new
price and number of shares following the payment of the stock dividend?
1,200 shares at $41.67
Roth 401(k) and Roth individual retirement account (IRA) plans share
which of the following features?
Qualified distributions are excluded from federal income tax
An associated person who is not a registered representative is permitted
to engage in which of the following activities?
Provide account opening forms to a new customer
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
, a premium
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from which of the following
parties?
A registered principal of the RR's firm
Under normal circumstances, a customer's letter of intent on a mutual
fund purchase is valid for what maximum period of time?
13 months
To offer its shareholders a privilege to obtain its shares at a fixed price,
which of the following products does a corporation issue?
Rights
The call provision of a bond stipulates which of the following factors?
Call date and call price
A decline in the gross domestic product (GDP) must last for at least how
many quarters to be considered a recession?
2 quarters
Regular way settlement on Treasury bonds is:
next business day
Which of the following statements is true regarding a customer account
held as tenants in common?
The ownership of the decedent's assets is governed by their will or state law.
Which of the following statements is true about treasury stock?
It is issued stock that has been subsequently reacquired by the corporation
Which of the following investment risks is the greatest risk in a variable
life insurance policy?
