FINRA Website SIE Practice Exam Questions with Answers
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FINRA Website SIE
Institution
FINRA Website SIE
FINRA Website SIE Practice Exam Questions with Answers
1. C. American
Depositary Re-
ceipts
2. A. Profit limited
and loss limited
3. C. A registered
principal of the
RR's firm
4. B. 50 shares at
$100 per share
5. A. Prohibited as
fraudulent and
manipulative
Under the Securities act of...
FINRA Website SIE Practice Exam Questions with Answers
1. C. American Under the Securities act of 1933, registration is required
Depositary Re- for which of the following securities?
ceipts
A. Eurodollar bonds
B. Municipal securities
C. American Depositary Receipts (ADRs)
D. Securities issued by the federal government
2. A. Profit limited Which of the following outcomes are possible for the writer
and loss limited of a covered call option?
A. Profit limited and loss limited
B. Profit limited and loss unlimited
C. Profit unlimited and loss limited
D. Profit unlimited and loss unlimited
3. C. A registered A registered representative (RR) who wants to place a
principal of the mutual fund advertisement must obtain written approval
RR's firm 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
4. B. 50 shares at An investor owns 100 shares of XYZ common stock at the
$100 per share current market price of $50 per share. If XYZ conducts a
1-for-2 reverse stock split, the investor's post-split stock
position will be:
A. 50 shares at $25 per share
B. 50 shares at $100 per share
C. 200 shares at $25 per share
D. 200 shares at $100 per share
5. A. Prohibited as A firm is a participant in a public offering. To sell a sub-
fraudulent and stantial amount of the securities to its customers, the
manipulative firm agrees to repurchase the shares at no less than the
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, FINRA Website SIE Practice Exam Questions with Answers
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
6. C. Variable rate Which of the following security types provides investors
demand note with a stated security date, a floating interest rate, and an
option to put the security back to a financial intermediary
on a dairy or weekly basis?
A. Equity put option
B. Perpetual preferred stock
C. Variable rate demand note
D. Tax-deferred variable annuity
7. C. Asset-backed Which of the following investments are generally traded
securities according to their average life rather than their stated
maturity date?
A. Corporate bonds
B. Government bonds
C. Asset-backed securities
D. Fixed-rate capital securities
8. D. Commissions Under FINRA rules, non cash compensation connected
with the sale of variable contracts includes all of the fol-
lowing items *except:*
A. Gifts
B. Meals
C. Lodging
D. Commissions
9. B. The Bank Se- FinCen accomplishes its mission to safeguard the finan-
crecy Act cial system from the abuses of financial crime, including
terrorist financing and money laundering, by enforcing:
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