SIE Exam 2024-2025 Questions &
Answers 100% Correct!!
What is the core responsibility of the FRB? - ANSWERTo Maintain Price Stability
According to the Securities Act of 1933 compliance protocol, what information does a company have
to disclose to its investors before the initial public offering? - ANSWERFinancial Statements and
information about the offered securities
Why was the FDIC created? - ANSWERTo prevent bank runs and ensure that safety of customers'
funds
Which associations protect investors against fraudulent activities and are responsible for providing
licenses to investment professionals and securities firms? - ANSWERFINRA
What is the SEC? - ANSWERa U.S. government oversight agency responsible for regulating the
securities markets and protecting investors
Which of the following correctly states the typical relationship between a change in the general level
of interest rates and a change in the market value of bonds? - ANSWERWhen interest rates decline,
bond values rise
Which of the following aspects of a performance fee is intended to motivate a hedge fund manager
to demonstrate consistently higher values? - ANSWERHigh water mark
Which of the following takes orders from a client and passes the order to an entity that is qualified to
match the buy order with a sell order from another person? - ANSWERIntroducing broker
Which of the following is a part of the FINRA continuing education requirements? - ANSWERFirm
element
What was the main reason the Securities Act was enacted? - ANSWERTo bring stability to the capital
market
Which of the following mutual find share classes would be expected to have the highest cumulative
sales charge when considering the longest reasonably possible investment horizon? - ANSWERClass C
Which of the following is a characteristic of a retirement account? - ANSWERIt is opened by a person
who desires tax deferral on the investment return
Which of the following may agree to a best effort agreement for an Initial Public Offering (IPO)? -
ANSWERUnderwriting syndicate, led by the lead underwriter
Which of the following may only be done by a person registered with FINRA? - ANSWEREncouraging
a person to buy or sell a security
1934 Act Section 14- Proxies provides guidance to...? - ANSWERBoards of Directors
How is notice of a corporate action given for exchange-traded shares? - ANSWERThe exchange
provides notice
Answers 100% Correct!!
What is the core responsibility of the FRB? - ANSWERTo Maintain Price Stability
According to the Securities Act of 1933 compliance protocol, what information does a company have
to disclose to its investors before the initial public offering? - ANSWERFinancial Statements and
information about the offered securities
Why was the FDIC created? - ANSWERTo prevent bank runs and ensure that safety of customers'
funds
Which associations protect investors against fraudulent activities and are responsible for providing
licenses to investment professionals and securities firms? - ANSWERFINRA
What is the SEC? - ANSWERa U.S. government oversight agency responsible for regulating the
securities markets and protecting investors
Which of the following correctly states the typical relationship between a change in the general level
of interest rates and a change in the market value of bonds? - ANSWERWhen interest rates decline,
bond values rise
Which of the following aspects of a performance fee is intended to motivate a hedge fund manager
to demonstrate consistently higher values? - ANSWERHigh water mark
Which of the following takes orders from a client and passes the order to an entity that is qualified to
match the buy order with a sell order from another person? - ANSWERIntroducing broker
Which of the following is a part of the FINRA continuing education requirements? - ANSWERFirm
element
What was the main reason the Securities Act was enacted? - ANSWERTo bring stability to the capital
market
Which of the following mutual find share classes would be expected to have the highest cumulative
sales charge when considering the longest reasonably possible investment horizon? - ANSWERClass C
Which of the following is a characteristic of a retirement account? - ANSWERIt is opened by a person
who desires tax deferral on the investment return
Which of the following may agree to a best effort agreement for an Initial Public Offering (IPO)? -
ANSWERUnderwriting syndicate, led by the lead underwriter
Which of the following may only be done by a person registered with FINRA? - ANSWEREncouraging
a person to buy or sell a security
1934 Act Section 14- Proxies provides guidance to...? - ANSWERBoards of Directors
How is notice of a corporate action given for exchange-traded shares? - ANSWERThe exchange
provides notice
