FINRA SIE Practice Test questions and answers
2024\2025 GradeA+
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)
5. Unsecured liabilities (debentures) and general creditors
6. Subordinated debt
2024\2025 GradeA+
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)
5. Unsecured liabilities (debentures) and general creditors
6. Subordinated debt
