SIE FINRA practice exam questions
with complete solutions8
Under SEC regulation S-P, which of the following information must a firm include in its customer
privacy and opt-out notices? - ANSWERS-the policies to protect the security of nonpublic
information
under industry regulations, an initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of - ANSWERS-$2,000, remember $2000 is the MINIMUM requirement
DPPs provide - ANSWERS-exposure to non-correlated assets
the primary purpose of a syndicate desk in the context of an equity offering is to - ANSWERS-
build an order book and allocate the stock
the call provision of a bond stipulates which of the following factors? - ANSWERS-call date and
call price
under FINRA rules, noncash compensation connected with the sale of variable contracts
includes all of the folllowing items except - ANSWERS-commissions
no-load mutual funds may have lower expense ratios than load mutual funds for which of the
following reasons? - ANSWERS-no-load funds are not permitted to charge a 12b-1 fee greater
than 25 basis points
when a BD charges a commission on a securities transaction, it has acted as - ANSWERS-an
agent
, a savings account at a bank is guaranteed by which of the following entities? - ANSWERS-FDIC
stability in the value of a debt portfolio is greatest when? - ANSWERS-maturities of the debt
securities are short
a decline in the GDP must last for at least how many quarters to be considered a recession? -
ANSWERS-2 quarters
which of the following communications with the public is considered misleading? - ANSWERS-
literature providing 10-year performance information to support predictions of future
performance
Roth 401k and Roth individual retirement account plans share which of the following features? -
ANSWERS-qualified distributions are excluded from federal income tax
insider information if the customer shares them with his RR EXCEPT - ANSWERS-declared stock
dividends
in the event of a stock split, which of the following entities is required to maintain a record of
the shareholders eligible to receive the additional shares? - ANSWERS-the transfer agent
which of the following actions violates FINRA rules regarding selling away? - ANSWERS-engaging
in private securities transactions without written prior consent of the employing BD
under rule 144A, an issuer of restricted stock is permitted to sell to which of the following
investors? - ANSWERS-QUIBS
blue-sky laws are regulated by which of the following entities? - ANSWERS-state securities
regulators
with complete solutions8
Under SEC regulation S-P, which of the following information must a firm include in its customer
privacy and opt-out notices? - ANSWERS-the policies to protect the security of nonpublic
information
under industry regulations, an initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of - ANSWERS-$2,000, remember $2000 is the MINIMUM requirement
DPPs provide - ANSWERS-exposure to non-correlated assets
the primary purpose of a syndicate desk in the context of an equity offering is to - ANSWERS-
build an order book and allocate the stock
the call provision of a bond stipulates which of the following factors? - ANSWERS-call date and
call price
under FINRA rules, noncash compensation connected with the sale of variable contracts
includes all of the folllowing items except - ANSWERS-commissions
no-load mutual funds may have lower expense ratios than load mutual funds for which of the
following reasons? - ANSWERS-no-load funds are not permitted to charge a 12b-1 fee greater
than 25 basis points
when a BD charges a commission on a securities transaction, it has acted as - ANSWERS-an
agent
, a savings account at a bank is guaranteed by which of the following entities? - ANSWERS-FDIC
stability in the value of a debt portfolio is greatest when? - ANSWERS-maturities of the debt
securities are short
a decline in the GDP must last for at least how many quarters to be considered a recession? -
ANSWERS-2 quarters
which of the following communications with the public is considered misleading? - ANSWERS-
literature providing 10-year performance information to support predictions of future
performance
Roth 401k and Roth individual retirement account plans share which of the following features? -
ANSWERS-qualified distributions are excluded from federal income tax
insider information if the customer shares them with his RR EXCEPT - ANSWERS-declared stock
dividends
in the event of a stock split, which of the following entities is required to maintain a record of
the shareholders eligible to receive the additional shares? - ANSWERS-the transfer agent
which of the following actions violates FINRA rules regarding selling away? - ANSWERS-engaging
in private securities transactions without written prior consent of the employing BD
under rule 144A, an issuer of restricted stock is permitted to sell to which of the following
investors? - ANSWERS-QUIBS
blue-sky laws are regulated by which of the following entities? - ANSWERS-state securities
regulators
