FINRA SIE Practice Test Questions With
Correct 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
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)
Broker-dealer |ABC |seeks |to |underwrite |a |municipal |securities |offering |by |a |local |town |in |which
|the |mayor |is |currently |seeking |re-election. |A |municipal |finance |professional |who |resides |in |
the |town |and |works |for |ABC |contributed |$200 |to |the |mayor's |re-election |campaign |13 |months
|ago. |If |the |employee |wants |to |support |the |campaign |further |without |impacting |the |municipal
|securities |business |of |the |firm, |he |is |permitted |to |make |an |additional |contribution |of |up |to |
what |amount? |- |CORRECT |ANSWER✔✔-$50 |($250 |is |the |limit |PER |election)
Which |of |the |following |stakeholders |has |first |claim |priority |in |a |Chapter |11 |proceeding? |- |
CORRECT |ANSWER✔✔-Secured |debt |holders
[Order |of |liquidation |at |bankruptcy:
1. |Unpaid |wages
2. |Taxes |(IRS)
3. |Secured |claims |(mortgages)
4. |Secured |liabilities |(bonds)
Correct 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
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)
Broker-dealer |ABC |seeks |to |underwrite |a |municipal |securities |offering |by |a |local |town |in |which
|the |mayor |is |currently |seeking |re-election. |A |municipal |finance |professional |who |resides |in |
the |town |and |works |for |ABC |contributed |$200 |to |the |mayor's |re-election |campaign |13 |months
|ago. |If |the |employee |wants |to |support |the |campaign |further |without |impacting |the |municipal
|securities |business |of |the |firm, |he |is |permitted |to |make |an |additional |contribution |of |up |to |
what |amount? |- |CORRECT |ANSWER✔✔-$50 |($250 |is |the |limit |PER |election)
Which |of |the |following |stakeholders |has |first |claim |priority |in |a |Chapter |11 |proceeding? |- |
CORRECT |ANSWER✔✔-Secured |debt |holders
[Order |of |liquidation |at |bankruptcy:
1. |Unpaid |wages
2. |Taxes |(IRS)
3. |Secured |claims |(mortgages)
4. |Secured |liabilities |(bonds)
