FINRA Practice SIE Exam 100%
Accurate!!
The redemption value of an open-end investment company's shares is based on the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - ANSWERNAV computed after the order is
received
The computation of dollar prices and accrued interest on municipal bonds is normal on what
calendar basis?
30/360
30/365
Actual/360
Actual/365 - ANSWER30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - ANSWERState securities regulators
At the time of issuance, which of the following securities normally has the longest period to
expiration?
Rights
Options
Warrants
Repurchase agreements - ANSWERWarrants
Regular way settlement on Treasury Bonds is:
same day
next business day
second business day
fifth business day - ANSWERnext business day
, A firm is a participant in a public offering. To sell a substantial amount of the securities to its
customers, the firm agrees to repurchase the shares at no less than the original sales price. Such
agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately sets aside funds for the repurchase
permissible if the customers retain the right to sell the securities into the open market. -
ANSWERprohibited as fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following information must a firm include in its
customer privacy and opt-out notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
the policies to protect the security of nonpublic information - ANSWERthe policies to protect the
security of nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
parent
custodian - ANSWERminor
Under FINRA rules, noncash compensation connected with the sale of variable contracts includes all
of the following items EXCEPT:
gifts
meals
lodging
commissions - ANSWERcommissions
Describe the difference between primary distribution and secondary distribution. - ANSWERa
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
If a market maker posts a quotes of 10.00 - 10.10 (25x10), which of the following actions is the
market maker willing to take?
sell 1,000 shares at $10 and buy 2,500 shares at $10.10
buy 2,500 shares at $10 and sell 1,000 shares at $10.10
sell 100 shares at $10 and buy 250 shares at $10.10
Accurate!!
The redemption value of an open-end investment company's shares is based on the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - ANSWERNAV computed after the order is
received
The computation of dollar prices and accrued interest on municipal bonds is normal on what
calendar basis?
30/360
30/365
Actual/360
Actual/365 - ANSWER30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - ANSWERState securities regulators
At the time of issuance, which of the following securities normally has the longest period to
expiration?
Rights
Options
Warrants
Repurchase agreements - ANSWERWarrants
Regular way settlement on Treasury Bonds is:
same day
next business day
second business day
fifth business day - ANSWERnext business day
, A firm is a participant in a public offering. To sell a substantial amount of the securities to its
customers, the firm agrees to repurchase the shares at no less than the original sales price. Such
agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately sets aside funds for the repurchase
permissible if the customers retain the right to sell the securities into the open market. -
ANSWERprohibited as fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following information must a firm include in its
customer privacy and opt-out notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
the policies to protect the security of nonpublic information - ANSWERthe policies to protect the
security of nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
parent
custodian - ANSWERminor
Under FINRA rules, noncash compensation connected with the sale of variable contracts includes all
of the following items EXCEPT:
gifts
meals
lodging
commissions - ANSWERcommissions
Describe the difference between primary distribution and secondary distribution. - ANSWERa
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
If a market maker posts a quotes of 10.00 - 10.10 (25x10), which of the following actions is the
market maker willing to take?
sell 1,000 shares at $10 and buy 2,500 shares at $10.10
buy 2,500 shares at $10 and sell 1,000 shares at $10.10
sell 100 shares at $10 and buy 250 shares at $10.10
