FINRA SIE Practice Test Exam 2026
Questions and Answers
Upon Expiration, all in-the-money S&P 100 Index call options are settled by the
delivery of which of the following? - Correct answer-Cash
Which of the following statements is true about treasury stock? - Correct answer-It
is issued stock that has been subsequently reacquired by the corporation
In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares? - Correct
answer-Transfer Agent
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program? - Correct answer-Designating an AML compliance
officer
A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take? - Correct answer-
Send written notice to his supervisor outlining the activity and compensation
structure
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, A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and simultaneously
buys 100 shares of ABC stock for $35 per share. The customer will break even
when the stock is selling at what price per share at expiration? - Correct answer-
$38
The call provision of a bond stipulates which of the following factors? - Correct
answer-Call date and call price
When is interest on Treasury notes paid? - Correct answer-Semiannually
The owner of which of the following products is MOST exposed to inflationary
risk? - Correct answer-Treasury bonds (because it's long-term)
A registered representative (RR) who wants to place a mutual fund advertisement
must obtain written approval from which of the following parties? - Correct
answer-A registered principal of the RR's firm
A company announces a tender offer to its shareholders with the intent to buy a
maximum of 1 million shares of its outstanding stock at $10 per share and sets no
minimum number of shares to be purchased. An investor wants to participate in
this offer and tenders his 1,000 share position. At the close of the offer period, only
900,000 shares have been tendered. How many, if any, of the investor's shares will
the company purchase? - Correct answer-1,000 (1,000 x 100 = 100,000 shares; 1
million - 900k = 100k)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Questions and Answers
Upon Expiration, all in-the-money S&P 100 Index call options are settled by the
delivery of which of the following? - Correct answer-Cash
Which of the following statements is true about treasury stock? - Correct answer-It
is issued stock that has been subsequently reacquired by the corporation
In the event of a stock split, which of the following parties is required to maintain a
record of the shareholders eligible to receive the additional shares? - Correct
answer-Transfer Agent
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program? - Correct answer-Designating an AML compliance
officer
A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take? - Correct answer-
Send written notice to his supervisor outlining the activity and compensation
structure
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and simultaneously
buys 100 shares of ABC stock for $35 per share. The customer will break even
when the stock is selling at what price per share at expiration? - Correct answer-
$38
The call provision of a bond stipulates which of the following factors? - Correct
answer-Call date and call price
When is interest on Treasury notes paid? - Correct answer-Semiannually
The owner of which of the following products is MOST exposed to inflationary
risk? - Correct answer-Treasury bonds (because it's long-term)
A registered representative (RR) who wants to place a mutual fund advertisement
must obtain written approval from which of the following parties? - Correct
answer-A registered principal of the RR's firm
A company announces a tender offer to its shareholders with the intent to buy a
maximum of 1 million shares of its outstanding stock at $10 per share and sets no
minimum number of shares to be purchased. An investor wants to participate in
this offer and tenders his 1,000 share position. At the close of the offer period, only
900,000 shares have been tendered. How many, if any, of the investor's shares will
the company purchase? - Correct answer-1,000 (1,000 x 100 = 100,000 shares; 1
million - 900k = 100k)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
