FINRA SIE Comprehensive Exam – 100
Questions & Answers Plus Rationales
Latest 2026/27 Instant Pdf Download
Graded A
Question 1
Under SEC Regulation S-P, which of the following information must a
firm include in its customer privacy and opt-out notices?
A. The firm's fee structure for advisory services
B. The policies to protect the security of nonpublic information under
industry regulations
C. A list of all third-party vendors the firm uses
D. The firm's historical performance data
Correct Answer: B – The policies to protect the security of nonpublic
information under industry regulations
Question 2
An initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of:
A. $1,500
B. $2,000
C. $3,000
D. $4,000
Correct Answer: B – $2,000 (the minimum requirement)
,Question 3
Direct Participation Programs (DPPs) provide:
A. Guaranteed returns
B. Exposure to non-correlated assets
C. Daily liquidity
D. Tax-free income
Correct Answer: B – Exposure to non-correlated assets
Question 4
The primary purpose of a syndicate desk in the context of an equity
offering is to:
A. Set the final offering price
B. Build an order book and allocate the stock
C. Provide secondary market trading support
D. Manage the company's investor relations
Correct Answer: B – Build an order book and allocate the stock
Question 5
The call provision of a bond stipulates which of the following factors?
A. Coupon rate and maturity date
B. Call date and call price
C. Sinking fund requirements
D. Conversion ratio and conversion price
Correct Answer: B – Call date and call price
Question 6
Under FINRA rules, noncash compensation connected with the sale of
,variable contracts includes all of the following items EXCEPT:
A. Gifts
B. Meals
C. Lodging
D. Commissions
Correct Answer: D – Commissions
Question 7
No-load mutual funds may have lower expense ratios than load mutual
funds for which of the following reasons?
A. No-load funds are exempt from SEC registration
B. No-load funds are not permitted to charge a 12b-1 fee greater than
25 basis points
C. No-load funds invest in lower-cost securities
D. No-load funds have no management fees
Correct Answer: B – No-load funds are not permitted to charge a 12b-1
fee greater than 25 basis points
Question 8
When a broker-dealer charges a commission on a securities transaction,
it has acted as:
A. An agent
B. A principal
C. An underwriter
D. A market maker
Correct Answer: A – An agent
, Question 9
A savings account at a bank is guaranteed by which of the following
entities?
A. FDIC
B. SIPC
C. FINRA
D. SEC
Correct Answer: A – FDIC
Question 10
Stability in the value of a debt portfolio is greatest when:
A. Maturities of the debt securities are long
B. Maturities of the debt securities are short
C. Interest rates are volatile
D. The portfolio contains high-yield bonds
Correct Answer: B – Maturities of the debt securities are short
Question 11
A decline in the GDP must last for at least how many quarters to be
considered a recession?
A. 1 quarter
B. 2 quarters
C. 3 quarters
D. 4 quarters
Correct Answer: B – 2 quarters
Questions & Answers Plus Rationales
Latest 2026/27 Instant Pdf Download
Graded A
Question 1
Under SEC Regulation S-P, which of the following information must a
firm include in its customer privacy and opt-out notices?
A. The firm's fee structure for advisory services
B. The policies to protect the security of nonpublic information under
industry regulations
C. A list of all third-party vendors the firm uses
D. The firm's historical performance data
Correct Answer: B – The policies to protect the security of nonpublic
information under industry regulations
Question 2
An initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of:
A. $1,500
B. $2,000
C. $3,000
D. $4,000
Correct Answer: B – $2,000 (the minimum requirement)
,Question 3
Direct Participation Programs (DPPs) provide:
A. Guaranteed returns
B. Exposure to non-correlated assets
C. Daily liquidity
D. Tax-free income
Correct Answer: B – Exposure to non-correlated assets
Question 4
The primary purpose of a syndicate desk in the context of an equity
offering is to:
A. Set the final offering price
B. Build an order book and allocate the stock
C. Provide secondary market trading support
D. Manage the company's investor relations
Correct Answer: B – Build an order book and allocate the stock
Question 5
The call provision of a bond stipulates which of the following factors?
A. Coupon rate and maturity date
B. Call date and call price
C. Sinking fund requirements
D. Conversion ratio and conversion price
Correct Answer: B – Call date and call price
Question 6
Under FINRA rules, noncash compensation connected with the sale of
,variable contracts includes all of the following items EXCEPT:
A. Gifts
B. Meals
C. Lodging
D. Commissions
Correct Answer: D – Commissions
Question 7
No-load mutual funds may have lower expense ratios than load mutual
funds for which of the following reasons?
A. No-load funds are exempt from SEC registration
B. No-load funds are not permitted to charge a 12b-1 fee greater than
25 basis points
C. No-load funds invest in lower-cost securities
D. No-load funds have no management fees
Correct Answer: B – No-load funds are not permitted to charge a 12b-1
fee greater than 25 basis points
Question 8
When a broker-dealer charges a commission on a securities transaction,
it has acted as:
A. An agent
B. A principal
C. An underwriter
D. A market maker
Correct Answer: A – An agent
, Question 9
A savings account at a bank is guaranteed by which of the following
entities?
A. FDIC
B. SIPC
C. FINRA
D. SEC
Correct Answer: A – FDIC
Question 10
Stability in the value of a debt portfolio is greatest when:
A. Maturities of the debt securities are long
B. Maturities of the debt securities are short
C. Interest rates are volatile
D. The portfolio contains high-yield bonds
Correct Answer: B – Maturities of the debt securities are short
Question 11
A decline in the GDP must last for at least how many quarters to be
considered a recession?
A. 1 quarter
B. 2 quarters
C. 3 quarters
D. 4 quarters
Correct Answer: B – 2 quarters
