SIE Practice Exam 2026 Questions and
Answers
Which corporate voting procedures entitles a shareholder to one vote per share, and
votes must be divided evenly among the candidates being voted on? - Correct
answer-Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-
counter market? These trades allow institutional investors to trade blocks of
securities directly, rather than through an exchange, providing liquidity and
anonymity to buyers. - Correct answer-Third market
An investor sells a naked call on Omikron for a $250 premium. What is true
regarding the investors position? - Correct answer-The investor's potential loss is
unlimited
Which act created the SEC and empowered it with broad authority over all aspects
of the securities industry? - Correct answer-Securities Exchange Act of 1934
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, A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment
advisor firms and advisors? - Correct answer-BrokerCheck
The Federal Reserve Board performs what actions? - Correct answer-It sets
monetary policy, but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a -
Correct answer-Rights offering
The difference between a bond's price and the conversion parity price is referred to
as - Correct answer-conversion premium
An individual who meets what criteria must register as an investment adviser? -
Correct answer-The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal
to the normally specified rate, as well as an additional dividend based on a specific
predetermined condition is called a - Correct answer-participating preferred stock
Profit sharing plans have what characteristic? - Correct answer-they can be
invested entirely in company stock
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers
Which corporate voting procedures entitles a shareholder to one vote per share, and
votes must be divided evenly among the candidates being voted on? - Correct
answer-Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-
counter market? These trades allow institutional investors to trade blocks of
securities directly, rather than through an exchange, providing liquidity and
anonymity to buyers. - Correct answer-Third market
An investor sells a naked call on Omikron for a $250 premium. What is true
regarding the investors position? - Correct answer-The investor's potential loss is
unlimited
Which act created the SEC and empowered it with broad authority over all aspects
of the securities industry? - Correct answer-Securities Exchange Act of 1934
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment
advisor firms and advisors? - Correct answer-BrokerCheck
The Federal Reserve Board performs what actions? - Correct answer-It sets
monetary policy, but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a -
Correct answer-Rights offering
The difference between a bond's price and the conversion parity price is referred to
as - Correct answer-conversion premium
An individual who meets what criteria must register as an investment adviser? -
Correct answer-The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal
to the normally specified rate, as well as an additional dividend based on a specific
predetermined condition is called a - Correct answer-participating preferred stock
Profit sharing plans have what characteristic? - Correct answer-they can be
invested entirely in company stock
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
