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FINRA Website SIE Practice Exam 20 Questions with Verified Answers,100% CORRECT
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FINRA Website SIE Practice Exam 20 Questions with Verified Answers
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FINRA Website SIE Practice Exam 20 Questions with VerifiedAnswers
Under the Securities act of 1933, registration is required for which of the
following securities?
A. Eurodollar bonds
B. Municipal securities
C. American Depositary Receipts (ADRs)
D. Securities issued by the federal government - CORRECT ANSWER C. American
Depositary Receipts
Which of the following outcomes are possible for the writer 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 - CORRECT ANSWER A. Profit limited and
loss limited
A registered representative (RR) who wants to place a mutual fund advertisement
must obtain written approval 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 -
CORRECT ANSWER C. A registered principal of the RR's firm
An investor owns 100 shares of XYZ common stock at the 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 - CORRECT ANSWER B. 50 shares at $100 per
share
A firm is a participant in a public offering. To sell a substantial amount of the
securities to its customers, the firm agrees to repurchase the shares at no less
than the 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 - CORRECT ANSWER A. Prohibited as fraudulent and manipulative
Which of the following security types provides investors 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 - CORRECT ANSWER C. Variable rate demand
note
Which of the following investments are generally traded 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 - CORRECT ANSWER C. Asset-backed securities
Under FINRA rules, non cash compensation connected with the sale of variable
contracts includes all of the following items *except:*
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