Nest 0 Cart
Nest Account
Popular Exams
All Categories...
Nest
Nest 0
Contact
Log In / Sign Up
Copyright 2024 © store. All rights reserved.
Home FINRA SIE

FINRA SIE Exam Practice Questions (P. 1)

  • Full Access (308 questions)
  • One Year of Premium Access
  • Access to one million comments
  • Seamless ChatGPT Integration
  • Ability to download PDF files
  • Anki Flashcard files for revision
  • No Captcha & No AdSense
  • Advanced Exam Configuration
Get Contributor Access
Question #1
Which of the following scenarios is an example of illegal insider trading?
  1. A
    A friend of an employee trades the corporation's securities after information is made public.
  2. B
    An employee trades the corporation's securities after learning of significant, confidential corporate developments.
  3. C
    A government employee trades the corporation's securities based on non-confidential information that he learned because of his employment with the government.
  4. D
    A vendor employee trades the corporation's securities based on confidential information that she obtained in connection with providing services to the corporation after the news was made public.

Correct Answer: B ?️

Question #2
Which of the following statements describes a characteristic of Treasury securities?
  1. A
    They are FDIC-insured.
  2. B
    They are not traded in the secondary market.
  3. C
    They are typically issued to fund specific government initiatives.
  4. D
    They are backed by the full faith and credit of the U.S. government.

Correct Answer: D ?️

Question #3
A privately held company plans to issue 1 million shares of stock. An underwriting syndicate has agreed to purchase all of the stock, and the syndicate members will, in turn, sell the stock to their customers. After the offering, the stock will trade on an exchange. Which of the following terms best describes the type of offering in which this company is engaging?
  1. A
    Shelf offering
  2. B
    Private offering
  3. C
    Follow-on offering
  4. D
    Initial public offering (IPO)

Correct Answer: D ?️

Question #4
Which of the following responses is characteristic of a Coverdell education savings account (ESA)?
  1. A
    There are no annual contribution limits.
  2. B
    Contributions into a Coverdell ESA are tax deductible.
  3. C
    Unused funds are permitted to be transferred to an eligible relative of any age.
  4. D
    The designated beneficiary must be under the age of 18 or be a special needs beneficiary when the account is established.

Correct Answer: D ?️

Question #5
An individual passes the Securities Industry Essentials (SIE) Exam and is hired by a broker-dealer (BD) as a sales assistant. Prior to taking a qualification exam, which of the following functions is she permitted to perform at the BD?
  1. A
    Accept interdealer orders from other BDs
  2. B
    Take unsolicited trade orders from customers
  3. C
    Perform clerical work for the BD's investment banking department
  4. D
    Call established customers of the BD to prequalify them for a new product offering

Correct Answer: C ?️

Question #6
Under FINRA rules, which of the following loans is a registered representative permitted to accept if it is allowed by his firm?
  1. A
    A loan from a long-time customer
  2. B
    A loan from a high net worth customer
  3. C
    A loan from a customer that is an industrial corporation
  4. D
    A loan from a customer who was a long-time friend prior to becoming associated with the firm

Correct Answer: D ?️

Question #7
What is the frequency of interest payments for a fixed coupon municipal bond?
  1. A
    Monthly
  2. B
    Quarterly
  3. C
    Semiannually
  4. D
    Annually

Correct Answer: C ?️

Question #8
Under FINRA rules, a broker-dealer's (BD's) anti-money laundering (AML) program is required to fulfill which of the following requirements?
  1. A
    Provide for independent testing by the designated AML compliance officer
  2. B
    Obtain FINRA approval for the initial AML program and subsequent revisions
  3. C
    Establish and implement AML policies reasonably designed to achieve compliance with the Bank Secrecy Act (BSA)
  4. D
    Identify the BD's non-associated person responsible for implementing the day-to-day operations of the AML program

Correct Answer: C ?️

Question #9
Which of the following responses describes a role or purpose of the SEC?
  1. A
    To fund FINRA and the MSRB
  2. B
    To regulate the activities of the IRS
  3. C
    To approve all new securities offerings
  4. D
    To protect investors against violations of securities laws

Correct Answer: D ?️

Question #10
Which of the following responses describes a potential tax advantage of a publicly traded real estate investment trust (REIT)?
  1. A
    Distributions are federally tax-free for individual investors.
  2. B
    Tax on distributions are paid by the REIT and not by the investors.
  3. C
    Taxes on distributions are paid only by the investors and not by the REIT itself.
  4. D
    Dividends and interest are federally tax-deferred for individual investors, with no tax due until the sale of the shares.

Correct Answer: C ?️

Next Questions

All Pages