SIE Practice Exam/ FINRA SIE Exam Combined with complete solution Newest RATED A+ 2025/2026 100% VERIFIED CORRECT

SIE Practice Exam/ FINRA SIE Exam Combined with
complete solution Newest RATED A+ 2025/2026 100%
VERIFIED CORRECT

Which corporate voting procedures entitles a shareholder to one vote per share, and votes must
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be divided evenly among the candidates being voted on? - Correct Answers Statutory voting
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Il` What market refers to the trading of exchange-listed securities in the over-the-counter market?
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Il` These trades allow institutional investors to trade blocks of securities directly, rather than through
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Il` an exchange, providing liquidity and anonymity to buyers. - Correct Answers Third market
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Il` An investor sells a naked call on Omikron for a $250 premium. What is true regarding the investors
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Il` position? - Correct Answers The investor's potential loss is unlimited
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Il` Which act created the SEC and empowered it with broad authority over all aspects of the
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Il` securities industry? - Correct Answers Securities Exchange Act of 1934
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Il` A free tool provided by FINRA that is intended to help consumers research the professional
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Il` backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors? - Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` Correct Answers BrokerCheck Il` Il` Il` Il` Il`




Il` The Federal Reserve Board performs what actions? - Correct Answers It sets monetary policy,
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Il` but does not set tax policy
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Il` An offering of shares to existing stockholders on a pro-rata basis is called a - Correct Answers
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Il` Rights offering Il`

,Il` The difference between a bond's price and the conversion parity price is referred to as - Correct
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Il` Answers conversion premium Il` Il` Il` Il` Il`




Il` An individual who meets what criteria must register as an investment adviser? - Correct Answers
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The individual provides advice or analyses concerning securities
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The individual is in the business of providing investment advice
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The individual provides investment advice for compensation
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Il` A type of preferred stock that gives the investor the right to receive dividends equal to the
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Il` normally specified rate, as well as an additional dividend based on a specific predetermined
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Il` condition is called a - Correct Answers participating preferred stock Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` Profit sharing plans have what characteristic? - Correct Answers they can be invested entirely in
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Il` company stock Il`




Il` What is true regarding the Central Registration Depository (CRD)? - Correct Answers It was
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Il` developed by NASAA and the NASD Il` Il` Il` Il` Il`




It consolidated a multiple paper-based state licensing and regulatory process into a single,
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nationwide computer system
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Its computerized database contains the licensing and disciplinary histories on more than 650,000
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securities professionals and 5,200 securities firms
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Il` Who is responsible for maintaining fair and orderly markets for an assigned set of listed firms?
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Il` They operate both manually and electronically to facilitate price discovery during market opens,
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Il` closes, and during periods of trading imbalances and instability. - Correct Answers Designated
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Il` Market Makers Il`




Il` If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would be
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Il` needed to be classified as an economic depression? - Correct Answers 3 quarters
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,Il` What is a correct reason to purchase a particular investment for a client's portfolio? - Correct
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Il` Answers Blue chip common stocks because they provide a hedge against inflation
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Il` An unconditional promise to pay a sum of money to a payee, either at a fixed or determinable
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Il` future time, under specific terms is called a - Correct Answers Promissory note
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Il` A trade surplus results from - Correct Answers a country exporting more than it imports
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Il` William, age 56, recently retired from Epsilon Inc., and would like to take a distribution from a
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Il` retirement plan to pay for medical expenses. What plan would allow William to take a penalty
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Il` free withdrawal? - Correct Answers 401(k) from Epsilon Inc
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Il` Match the state of the business cycle with the description that follows for questions 19-22
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A. Trough
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B. Expansion
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C. Contraction
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D. Peak Il`




_______ Recession - Correct Answers contraction Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` _________ Utilization at its lowest level - Correct Answers Trough Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` _______ Recovery - Correct Answers Expansion Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` ________ GDP at its highest point - Correct Answers Peak Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`

, Il` All are characteristics of a REIT EXCEPT - Correct Answers it is a publicly traded open-end
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Il` investment company Il`




(it is closed-end)
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Il` What can an investor sign which allows him or her to receive breakpoint discounts based upon a
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Il` commitment to buy a specified number of mutual fund shares over a period of time, usually 13 Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` months - Correct Answers Letter of intent
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Il` What is a type of exchange rate system in which a country ties its currency to a basket of other
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Il` currencies or to another measure of value, such as gold? - Correct Answers Fixed exchange rate
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Il` system



Il` What will result if money distributed from a 529 plan is not used to pay for qualifying education
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Il` expenses? - Correct Answers The gain is taxed as ordinary income, and a 10% penalty is applied
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Il` An investor who believes that an economic recession is imminent should purchase which type of
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Il` stock? - Correct Answers Defensive stock because they tend to outperform during economic
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Il` downturns



Il` What is true regarding dividends paid by growth stocks and value stocks? - Correct Answers
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Il` Because they are growing and expanding, growth stocks typically do not pay large dividends
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Il` What is a type of broker that acts as a liaison between an investor and a clearing corporation by
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Il` helping to ensure that trades are settled appropriately and transactions are successfully
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Il` completed? - Correct Answers Clearing broker Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` What form must broker-dealers, investment advisers, or issuers of securities fill out in order to
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Il` terminate the registration of an individual in the appropriate jurisdiction? It is also known as the
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Il` Uniform Termination Notice for Securities Industry Registration. - Correct Answers U5
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