FINRA's SIE EXAM 1 Questions &
ANSWERS(RATED A)
An associated person who is not a registered representative is permitted to engage in
which of the following? - ANSWER provide account opening forms to a new customer
At issue, which of the following debt securities mature in one year or less? - ANSWER
money market instruments
Direct participation programs provide - ANSWER exposure to non-correlated assets
with steady returns
When are treasury notes paid? - ANSWER semi annually
Which of the following statements is true about all U.S government agency issues? -
ANSWER they are exempt from registration under the Securities Act of 1933
Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors? - ANSWER qualified instituional buyers (QIBs)
What is the effect of a stock split? - ANSWER the price per share of common stock
decreases
Under the Securities Act of 1933, registration is required for which of the following
securities? - ANSWER American Depository Receipts (ADRs)
Blue sky laws are regulated by which entities? - ANSWER state securities regulators
The primary purpose of a syndicate desk in the context of an equity offering is to -
ANSWER build an order book and allocate the stock
Which of the following considerations should a registered representative explain to a
customer when reccomending a 529 college savings plan? - ANSWER the potential
deductibility of contributions from state taxes
Which of the following products is adversely impacted if the issuers credit rating is
downgraded? - ANSWER exchange trade notes (ETNs)
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her account statement? - ANSWER quarterly
ANSWERS(RATED A)
An associated person who is not a registered representative is permitted to engage in
which of the following? - ANSWER provide account opening forms to a new customer
At issue, which of the following debt securities mature in one year or less? - ANSWER
money market instruments
Direct participation programs provide - ANSWER exposure to non-correlated assets
with steady returns
When are treasury notes paid? - ANSWER semi annually
Which of the following statements is true about all U.S government agency issues? -
ANSWER they are exempt from registration under the Securities Act of 1933
Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the
following investors? - ANSWER qualified instituional buyers (QIBs)
What is the effect of a stock split? - ANSWER the price per share of common stock
decreases
Under the Securities Act of 1933, registration is required for which of the following
securities? - ANSWER American Depository Receipts (ADRs)
Blue sky laws are regulated by which entities? - ANSWER state securities regulators
The primary purpose of a syndicate desk in the context of an equity offering is to -
ANSWER build an order book and allocate the stock
Which of the following considerations should a registered representative explain to a
customer when reccomending a 529 college savings plan? - ANSWER the potential
deductibility of contributions from state taxes
Which of the following products is adversely impacted if the issuers credit rating is
downgraded? - ANSWER exchange trade notes (ETNs)
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her account statement? - ANSWER quarterly
