SIE Practice Exam 3

This is our third SIE Practice Exam, which contains 25 challenging multiple-choice questions (MCQs). Our practice exam includes similar questions found on the FINRAs Securities Industry Essential exam.

1. Which of the following investments are generally traded according to their average life rather than their stated maturity dates?

 
 
 
 

2. A registered representative is reviewing the following portfolio:

  • 30% ABC Energy Company
  • 30% XYZ Health Care Company
  • 30% Exchange-traded fund (tracks the S&P 500)
  • 10% Money market funds

Which of the following risks is inherent in this portfolio?

 
 
 
 

3. Under SEC Regulation S-P (Consumer Privacy), which of the following information must a firm include in its customer privacy and opt-out notices?

 
 
 
 

4. Which of the following entities guarantees a savings account at a bank?

 
 
 
 

5. Which of the following statements is TRUE about treasury stock?

 
 
 
 

6. Which of the following stakeholders has first claim priority in a Chapter 11 proceedings?

 
 
 
 

7. Which of the following outcomes are possible for the covered call option writer?

 
 
 
 

8. FinCEN accomplishes its mission to safeguard the financial system from the abuses of financial crime, including terrorist financing and money laundering, by enforcing:

 
 
 
 

9. To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following products does a corporation issue?

 
 
 
 

10. Upon expiration, all in-the-money S&P 100 Index call options are settled by the delivery of which of the following?

 
 
 
 

11. When is the interest on Treasury notes paid?

 
 
 
 

12. In the event of a stock split, which of the following parties is required to maintain a record of shareholders eligible to receive the additional shares?

 
 
 
 

13. Which of the following represents the effect of a stock split?

 
 
 
 

14. If a market maker posts a quote of 10.00-10.10[25×10], which of the following actions is the market maker willing to take?

 
 
 
 

15. The regular way settlement on Treasury bonds is:

 
 
 
 

16. Under the Securities Act of 1933, registration is required for which of the following securities?

 
 
 
 

17. No-load mutual funds may have lower expense ratios than load mutual funds for which of the following reasons?

 
 
 
 

18. Direct participation programs (DPPs) provide:

 
 
 
 

19. Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the following investors?

 
 
 
 

20. Roth 401(k) and Roth individual retirement account (IRA) plans share which of the following features?

 
 
 
 

21. Which of the following responses describes an advantage of index funds?

 
 
 
 

22. Which of the following statements is true regarding the concept of an annuity contract?

 
 
 
 

23. The primary purpose of a syndicate desk in the context of an equity offering is to:

 
 
 
 

24. A broker-dealer is permitted to accept payment for a new issue from a new customer when the:

 
 
 
 

25. At the time of issuance, which of the following securities normally has the longest expiration period?

 
 
 
 

Question 1 of 25

After attempting these questions, try our fourth practice test. Our SIE Practice Exam 4 also contains 25 challenging questions from Overview of Regulatory Framework, Capital Markets, Products and their Risks, Trading, Customer Accounts, and Prohibited Activities.

SIE Practice Exam 4 >>