FINRA SIE Practice Exams
Last updated on Apr 14,2025- Exam Code: SIE
- Exam Name: Securities Industry Essentials Exam (SIE)
- Certification Provider: FINRA
- Latest update: Apr 14,2025
Which of the following statements best describes an American Depositary Receipt (ADR)?
- A . ADRs trade like U.S. issues and are quoted in U.S. dollars.
- B . ADRs trade like U.S. issues and are quoted in foreign currency.
- C . ADRs represent shares of a U.S. security held in foreign commercial banks.
- D . ADRs represent shares of a foreign security held in foreign commercial banks.
Which of the following statements describes a characteristic of exchange-traded funds (ETFs)?
- A . ETFs are offered with front-end or back-end loads.
- B . ETFs are not permitted to be purchased on margin.
- C . ETFs are purchased and sold daily at net asset value (NAV).
- D . ETF expense ratios are generally lower than those of mutual funds.
Company XYZ files a registration statement for its initial public offering (IPO). XYZ is permitted to communicate all of the following information about the offering in writing to investors except that:
- A . The IPO is expected to price in early February.
- B . The IPO is being underwritten by Bank ABC and Bank DEF.
- C . A recent industry report supports the company’s valuation.
- D . The road show will be held February 6C10 in New York and Boston.
Which of the following activities engaged in by a registered person is considered a private securities transaction?
- A . Soliciting donations to a charity
- B . Helping a friend raise money for a startup company they founded
- C . Working for an insurance company selling term life insurance policies
- D . Investing personal money in shares of a listed security in a brokerage account
The Options Clearing Corporation (OCC) is a registered clearing agency for which of the following products?
- A . Listed stocks
- B . Over-the-counter bonds
- C . Exchange-traded funds (ETFs)
- D . Long-term Equity Anticipation Securities (LEAPS)
An investor wants to purchase additional mutual fund shares with income distributed by the fund.
Which of the following fund options permits this?
- A . Asset reallocation
- B . Dollar cost averaging
- C . Dividend reinvestment
- D . Capital gains reinvestment
Which of the following responses describes a collateralized mortgage obligation (CMO) tranche?
- A . The yield a customer should expect if the CMO is held to maturity
- B . The estimated average life of the CMO expressed in years and months
- C . A slice of the investment representing a coupon rate, maturity date, and credit rating
- D . The method of underwriting used by the issuer to securitize the loans in the portfolio
For up to how many business days is a firm initially permitted to place a temporary hold on disbursements for a specified adult account in which the firm reasonably believes financial exploitation has occurred?
- A . 3 business days
- B . 5 business days
- C . 10 business days
- D . 15 business days
In performing fundamental analysis of an equity, which of the following elements should an investor consider?
- A . Chart patterns
- B . Moving average
- C . Financial statements
- D . Resistance and support levels
A customer purchases $3,000 of XYZ, which settles today in a margin account. The customer has no other positions or balances.
According to initial margin requirements, what is the amount of the required deposit?
- A . $1,500
- B . $2,000
- C . $2,500
- D . $3,000