SIE Exam - Finra Example Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

SIE Exam - Finra Example Questions and Answers | Latest Version | 2025/2026 | Correct & Verified What is the primary purpose of the SIE Exam? A) To license registered investment advisers B) To assess basic securities industry knowledge C) To qualify candidates for trading authority D) To test advanced portfolio management Which security represents ownership in a corporation? A) Common stock B) Corporate bond C) Treasury bill D) Certificate of deposit Which type of risk affects all securities in the market? A) Business risk B) Systematic risk C) Credit risk D) Liquidity risk A bond’s coupon rate refers to the: 2 A) Interest rate paid on the bond’s face value B) Market yield C) Bond maturity date D) Issue price Which of the following is considered a debt security? A) Preferred stock B) Corporate bond C) Mutual fund D) ETF What happens to bond prices when interest rates rise? A) Prices rise B) Prices fall C) Prices remain unchanged D) Prices fluctuate randomly Which regulator oversees broker-dealers? A) FDIC B) FINRA C) IRS D) OCC 3 Which account allows securities to be purchased using borrowed funds? A) Cash account B) Margin account C) Custodial account D) Retirement account Which investment generally offers the highest potential return over time? A) Treasury bonds B) Money market funds C) Common stocks D) Certificates of deposit A prospectus primarily provides investors with: A) Disclosure about risks and objectives B) Guaranteed returns C) Trading instructions D) Tax advice Which security has the highest priority in liquidation? A) Common stock B) Preferred stock C) Secured bond D) Convertible bond 4 What is a mutual fund? A) A pooled investment managed by professionals B) A government-issued bond C) A single stock investment D) A fixed annuity Which market is considered the primary market? A) IPO issuance B) NYSE trading C) NASDAQ trading D) Over-the-counter trades Which investment risk relates to the