FINRA SIE PRACTICE EXAM SCRIPT 2026 TEST
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ Which of the following considerations should a registered
representative explain t a customer when recommending a 529
college savings plan? Answer: The potential deductibility of
contributions from state taxes.
◉ To offer its shareholders a privilege to obtain its shares at a fixed
price, which products does a corporation issue? Answer: Rights
◉ Political campaign contribution limit? Answer: $250
◉ A registered representative (RR) who wants to place a mutual
fund advertisement must obtain written approval from from which
party? Answer: A registered principal of the RR's firm.
◉ If a market maker post a quote of 10.00-10.10 (25x10) which of
the following actions is the market maker willing to take? Answer:
Buy 2,500 shares at $10.00 and sell 1,000 shares at 10.10.
, ◉ A transaction in which a writer covers a position by purchasing an
option is called? Answer: A closing purchase.
◉ Under Federal Reserve Regulation T, a 90-day restriction is
imposed when a customer opens and closes which of the following
positions? Answer: The same stock in a cash account without paying
for the stock in full.
◉ Letter of Intent is valid for? Answer: 13 months
◉ Under rule 144A, an issuer of restricted stock is permitted to sell
to which type of investor? Answer: Qualified institutional buyers
(QB's)
◉ A member of a stock exchange responsible for providing liquidity
in a security buy being willing to buy and sell at all times is known
as? Answer: A Marker Maker.
◉ Which of the following security types provides investors with a
stated maturity date, a floating interest rate, and an option to put the
society back to a financial intermediary on a daily or weekly basis?
Answer: Variable rate demand note.
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ Which of the following considerations should a registered
representative explain t a customer when recommending a 529
college savings plan? Answer: The potential deductibility of
contributions from state taxes.
◉ To offer its shareholders a privilege to obtain its shares at a fixed
price, which products does a corporation issue? Answer: Rights
◉ Political campaign contribution limit? Answer: $250
◉ A registered representative (RR) who wants to place a mutual
fund advertisement must obtain written approval from from which
party? Answer: A registered principal of the RR's firm.
◉ If a market maker post a quote of 10.00-10.10 (25x10) which of
the following actions is the market maker willing to take? Answer:
Buy 2,500 shares at $10.00 and sell 1,000 shares at 10.10.
, ◉ A transaction in which a writer covers a position by purchasing an
option is called? Answer: A closing purchase.
◉ Under Federal Reserve Regulation T, a 90-day restriction is
imposed when a customer opens and closes which of the following
positions? Answer: The same stock in a cash account without paying
for the stock in full.
◉ Letter of Intent is valid for? Answer: 13 months
◉ Under rule 144A, an issuer of restricted stock is permitted to sell
to which type of investor? Answer: Qualified institutional buyers
(QB's)
◉ A member of a stock exchange responsible for providing liquidity
in a security buy being willing to buy and sell at all times is known
as? Answer: A Marker Maker.
◉ Which of the following security types provides investors with a
stated maturity date, a floating interest rate, and an option to put the
society back to a financial intermediary on a daily or weekly basis?
Answer: Variable rate demand note.
