SIE FINRA PRACTICE EXAM ACCURATE
100%
What is the cost basis of an inherited mutual fund? - ANSWER The net asset value
(NAV) of the shares when the owner dies
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions - ANSWER the same stock in a cash
account without paying for the stock in full
An associated person who is not a registered representative is permitted to engage in
which of the following activities - ANSWER provide account opening forms to a new
customer
UTMA accounts are opened under the tax ID of the - ANSWER minor
all of the following risks apply to both foreign and domestic debt instruments except -
ANSWER exchange
Which of the following actions violates FINRA rules regarding selling away - ANSWER
engaging in private securities transactions without written prior consent of employed BD
Which of the following Form U4 reportable events results in a statutory disqualification -
ANSWER A felony conviction for a driving under the influence (DUI) charge
A registered representative (RR) wants to participate in a private securities transaction.
Which of the following actions must the RR take - ANSWER Send written notice to his
supervisor outlining the activity and compensation structure
Which of the following statements is true regarding a customer account held as tenants
in common - ANSWER The ownership of the decedent's assets is governed by their will
or state law
Under the Securities Act of 1933, registration is required for which of the following
securities - ANSWER American Depository Receipts (ADRs)
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 - ANSWER Transfer
agent
Which of the following represents the effect of a stock split - ANSWER The price per
share of common stock decreases
100%
What is the cost basis of an inherited mutual fund? - ANSWER The net asset value
(NAV) of the shares when the owner dies
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions - ANSWER the same stock in a cash
account without paying for the stock in full
An associated person who is not a registered representative is permitted to engage in
which of the following activities - ANSWER provide account opening forms to a new
customer
UTMA accounts are opened under the tax ID of the - ANSWER minor
all of the following risks apply to both foreign and domestic debt instruments except -
ANSWER exchange
Which of the following actions violates FINRA rules regarding selling away - ANSWER
engaging in private securities transactions without written prior consent of employed BD
Which of the following Form U4 reportable events results in a statutory disqualification -
ANSWER A felony conviction for a driving under the influence (DUI) charge
A registered representative (RR) wants to participate in a private securities transaction.
Which of the following actions must the RR take - ANSWER Send written notice to his
supervisor outlining the activity and compensation structure
Which of the following statements is true regarding a customer account held as tenants
in common - ANSWER The ownership of the decedent's assets is governed by their will
or state law
Under the Securities Act of 1933, registration is required for which of the following
securities - ANSWER American Depository Receipts (ADRs)
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 - ANSWER Transfer
agent
Which of the following represents the effect of a stock split - ANSWER The price per
share of common stock decreases
