Welcome to your SIE Practice Exam
This test is designed to prepare you mentally for the actual SIE Exam with the same number of questions (75) and the same time allowed (105 minutes) as the actual exam.
NOTE: This Practice Exam has four Parts
The Four (4) parts are:
1. Understanding Products and Their Risks [33 Questions] - 44%
2. Knowledge of Capital Markets [12 Questions] - 16%
3. Understanding Trading, Customer Accounts and Prohibited Activities [23 Questions] - 31%
4. Overview of Regulatory Framework [7 Questions] - 9%
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1.
All of the following statements about a home office are true except
2.
Joshua, a registered representative, calls a prospect at 7:00 pm only to be told that the caller is in a different time zone, where it is 10:00 pm. Joshua has
3.
Each of the following are likely benefits of owning shares of common stock except
4.
All of the following would be requirements of the Telephone Consumer Protection Act of 1991 except
5.
Blaine Smith has owned XYZ stock for several years and believes it is time to take his profit and invest that money in another stock. He should
6.
Fingerprint records are required for each of the following employees of a registered broker-dealer except
7.
Characteristics common to penny stocks would include which of the following?
8.
If a shareholder does not wish to attend an annual stockholders' meeting, but still wishes to vote, the shareholder may confer a limited power of attorney on another party to vote the shares. This power is known as
9.
Shares must be borrowed in order to
10.
Companies in defensive industries would be the manufactures of
11.
In the dividend disbursement process three of the four critical dates are determined by the board of directors (BOD) but one is determined by either Financial Industry Regulatory Authority (FINRA) for OTC stocks or the exchange for listed stocks. Which one is it?
12.
Which of the following best describes how a market order to sell would fill if placed when the price of the stock is a 40?
13.
A registered representative is explaining discretionary and nondiscretionary accounts to a customer. Only one of the following statements is accurate and can be made by the registered representative. Which is it?
14.
What is the formula for calculating working capital?
15.
Because common stock can be sold or given away, it is considered to be
16.
Which of the following would be a secondary market transaction?
17.
Subject to market liquidity, which of the following orders is most likely to be executed immediately?
18.
A municipal finance professional wants to make a political contribution to a candidate for mayor in the town that she resides in. Under the MSRB pay-to-play rule, a contribution to this candidate
19.
A company has distributed profits to its shareholders. This type of distribution would most likely be in the form of
20.
An application for Financial Industry Regulatory Authority (FINRA) membership carries the applying firm's specific agreement to do which of the following?
21.
A shareholder had arranged to vote by proxy at the corporation's annual shareholders' meeting, but later decided to vote the shares personally. All of the following statements regarding this situation are true except
22.
The decision to pay a dividend rests with
23.
All corporations will issue
24.
When the Federal Open Market Committee (FOMC) directs that Treasury securities be purchased in the open market, this
25.
Which of the following would not require delivery of notice?
26.
An individual owning shares of a corporation's common stock would have all of the following rights except
27.
A registered representative was guilty of an undetected minor rule violation during the last year of employment at a broker-dealer firm. The representative has now decided to leave the industry. For how long might the representative still be subject to fines or other sanctions by Financial Industry Regulatory Authority (FINRA) if the violation is belatedly detected?
28.
For preferred shares, the annual dividend payment is
29.
Regarding transferability for common shares, which of the following is true?
30.
When a company wants to issue additional shares of stock, the preemptive right given to existing shareholders allows those shareholders to
31.
By electing a board of directors (BOD), stockholders have
32.
A company's business operations are overseen by
33.
An example of a fixed-income security would include all of the following except
34.
Your client, Jacob Riley, wants to purchase Treasury bonds and asks when he would need to pay for the bonds. You would tell him that regular way settlement for U.S. government bonds is
35.
Gifts and gratuities directed to those who work at another firm may not be made by a member or associated person for amounts greater than
36.
Voting rights are a privilege generally afforded to
37.
A FINRA maintenance call will occur in a short margin account if the equity drops below
38.
Under the USA PATRIOT Act, financial firms must create and maintain records of wire transfers only
39.
Common stockholders owning dividend paying stocks are exposed to
40.
An order is entered by a customer to sell at 30 stop limit. Once the order is entered, the stock trades in the following sequence: 32, 29, 31, and 33. The order would be executed and the investor would receive a price of
42.
Which of the following groupings might indicate the economy is contracting?
43.
To obtain a Statement of Additional Information (SAI) regarding a particular mutual fund, an investor could do any of the following except
44.
A registered person has left the securities industry and now holds a manufacturing job. Under what circumstances may this formerly registered person continue to receive commissions from work done at the person's old firm?
45.
Which of the following retirement plans does not require minimum distributions once the participant has reached age 72?
46.
Which of the following investment companies do not redeem their shares?
47.
The SEC can do all of the following except
48.
Which of the following statements best describes the term churning?
49.
A customer investing in common equity securities could realize all of the following except
50.
Your client, Dana McRae, has no investment experience. She just retired and won't be in a high tax bracket. She also is concerned about volatility of her investments. She is more concerned about preserving her principal than getting a high rate of return. Which of the follow would you recommend?
51.
Shelby Bogden, your client, purchased a 6% corporate bond with a current yield of 5%. The bond was purchased at
52.
Regarding the rights of a common stockholder, each of the following is true except
53.
Accusations of Financial Industry Regulatory Authority (FINRA) Conduct Rule violations will heard and handled under the
54.
Your customer has one position in her account and it poses an unlimited loss potential. Which of the following is it?
55.
Prepayment risk is associated with which type of securities?
56.
Which of the following would be required for a good 'til canceled order to remain in force for more than six months?
57.
All of the following are provisions of Regulation S-P except
58.
An opening transaction can be
59.
Which of the following is true regarding the primary market?
60.
A select pair or group of companies organized to underwrite corporate or municipal securities is best known as
61.
How an account is registered determines
62.
An oil and gas DDP that invests in wells that are already producing is known as
63.
Exempt from the penny stock rules are
64.
All of the following could be characterized as benefits to owning common stock except
65.
Regarding investment products, which of the following is true?
66.
All associated persons must be fingerprinted if they handle
67.
Someone who purchases shares of a corporation's common stock has
68.
The law that provides the legal framework for state registration of securities is
69.
Which of the following records must be kept by a broker-dealer firm for three years?
70.
There are two distinctive types of policies implemented to shape and mold the U.S. economy. They are
71.
A prospectus must be delivered to customers following a transaction in all of the following except
72.
Stagnation in the economy can be associated with
73.
Associated persons or registered representatives who want to work outside of their existing employment with their current broker-dealer may do so if they provide prior written notice to the member. In which of the following would notice not be required?
74.
A customer is given a quote for ABC as: 17.00 – 17.25 6 × 12. This quote indicates the customer can
75.
When a bond is purchased at a discount the current yield will be
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