FINRA SIE Practice Exams
Last updated on Apr 05,2025- Exam Code: SIE
- Exam Name: Securities Industry Essentials Exam (SIE)
- Certification Provider: FINRA
- Latest update: Apr 05,2025
When are registered persons required to fulfill their Continuing Education (CE) Regulatory Element requirement?
- A . Annually
- B . Semiannually
- C . After the initial three-year requirement and then every two years
- D . Upon the receipt of a customer complaint
Trades that settle within the period preset by regulators of the particular market are considered to have which of the following types of settlement?
- A . Cash
- B . Rolling
- C . Next day
- D . Regular way
Which of the following statements is true of an index exchange-traded fund (ETF)?
- A . It has a high portfolio turnover ratio.
- B . It is priced once daily, generally at the market close.
- C . It offers an opportunity to outperform the index it tracks.
- D . Passive ETFs will typically have lower fees than those associated with actively managed ETFs.
Which of the following must a registered representative disclose as an outside business activity (OBA) on his Form U4?
- A . Volunteer work for a local charity
- B . Trustee on a grandparent’s estate account
- C . Board member for a publicly traded company
- D . Board member serving without compensation for a not-for-profit entity
The financial risk that a given security is not readily tradable in the market without impacting the market price is known as:
- A . Credit risk
- B . Market risk
- C . Liquidity risk
- D . Prepayment risk
An investor sells shares of a closed-end fund at the market.
Which of the following responses best describes the net proceeds to be received?
- A . Net asset value (NAV)
- B . NAV less any redemption fee
- C . Bid price less any commission
- D . Public offering price (POP) less any redemption fee
Which of the following statements is true of the writer of a listed equity call option?
- A . They have the right to sell stock at a fixed strike price.
- B . They have the right to buy stock at a fixed strike price.
- C . They have the obligation to sell stock at a fixed strike price.
- D . They have the obligation to buy stock at a fixed strike price.
Shares in a private investment in public equity (PIPE) offering are priced:
- A . At the current market value per share.
- B . Below the current market value per share.
- C . Above the current market value per share.
- D . At the public offering price (POP) as determined by the underwriters.
A municipal securities dealer makes a political contribution of $990 to a local mayoral candidate. At the end of the quarter, to whom, if anyone, must the dealer report the contribution?
- A . SEC
- B . MSRB
- C . FINRA
- D . No disclosure required as the amount is below the reporting threshold
Which of the following terms describes an offer to purchase some or all shareholders’ shares in a corporation, usually at a premium to the market price?
- A . Tender
- B . Stock split
- C . Redemption
- D . Class action