FINRA Website SIE Practice Exam Questions & Answers

A firm is a participant in a public offering. To sell a substantial amount of the securities to its customers, the firm agrees to repurchase the shares at no less than the original cales price. Such agreements are: A. Prohibited as fraudulent and manipulative B. Permissible if the securities are deposite into escrow C. Prohibited unless the firm immediately sets aside funds for the repurchase D. Permissible if the customers retain the right to sell the securities into the open market - A. Prohibited as fraudulent and manipulative A married couple who earned income that exceeded $300,000 in each of the prior two years and reasonable expects the same for the current year is: A. A qualified investor B. An accredited investor C. An institutional investor D. A qualified institutional buyer (QIB) - B. An accredited investor A registered representative (RR) who wants to place a mutual fund advertisement must obtain written approval from which of the following parties? A. FINRA B. Each State's securities administrator C. A registered principal of the RR's firm D. The investment management division of the appropriate regional SEC office - C. A registered principal of the RR's firm A transaction in which a writer covers a position by purchasing an option is called: A. A closing sale B. A closing purchase C. An opening Sale D. An opening purchase - B. A closing purchase