SIE Practice Exam 1

Are you preparing for the FINRA Securities Industry Essentials Exam (SIE)? Check your knowledge with our Free SIE Practice Exam. This practice test contains 25 questions related to the financial and securities market.

Free SIE Practice Questions

1. When the market price of a company’s common stock has reached triple digits ($100 or above), the Board of Directors may elect to declare which of the below to make the shares more affordable.

 
 
 
 

2. Call option contracts are considered to have intrinsic value:

 
 
 
 

3. One of the most frequently issued money market instruments is commercial paper. Typically, this investment has a maximum maturity:

 
 
 
 

4. All of the below are typical features of an ETF except:

 
 
 
 

5. Which of the following are NOT considered money market securities?

 
 
 
 

6. When a corporate Board announces a 10% stock dividend, shareholders know they will be receiving:

 
 
 
 

7. Reinvestment risk is least present in:

 
 
 
 

8. In most cases, Federal Securities Laws:

 
 
 
 

9. When a corporation goes public, it is issuing:

 
 
 
 

10. A customer wishes to liquidate 100 shares of ABC common at the market. If the current inside market is 904.78 – 905.57, the client’s transaction will occur disregarding commissions and other charges at:

 
 
 
 

11. The so-called 5% policy pertains to:

 
 
 
 

12. Corporate stockholders elect boards of Directors in the publicly traded sphere. Which of the following methods is used?

 
 
 
 

13. The spread between bid and offer:

 
 
 
 

14. The Securities & Exchange Commission (SEC) was created by Congress in:

 
 
 
 

15. Every publicly traded corporation is required to have a transfer agent and a registrar. The primary distinction between the two is:

 
 
 
 

16. Certain securities are marginable under Regulation T of the Securities & Exchange Act of 1934 except:

 
 
 
 

17. The principal difference between a selling syndicate and a selling group would be:

 
 
 
 

18. When an investor is bearish on the broad stock market:

 
 
 
 

19. The Securities Investor Protection Corporation (SIPC) is:

 
 
 
 

20. The Securities Industry Essentials examination gives a candidate:

 
 
 
 

21. The term ‘Disclaimer’ is most often associated with:

 
 
 
 

22. A market maker is obligated:

 
 
 
 

23. The term ‘Issuer’ most often refers to:

 
 
 
 

24. Accumulation units are most often associated with:

 
 
 
 

25. One of the more attractive features of common stock is that:

 
 
 
 

Question 1 of 25

The above SIE Practice Test contains 25 questions. After completing the exam, try our second practice exam to test your knowledge of finance and the securities industry.