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SIE Practice Questions

Securities Industry Essentials Exam (SIE)

Last Update 4 days ago
Total Questions : 164

Dive into our fully updated and stable SIE practice test platform, featuring all the latest General Securities Representative exam questions added this week. Our preparation tool is more than just a FINRA study aid; it's a strategic advantage.

Our General Securities Representative practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about SIE. Use this test to pinpoint which areas you need to focus your study on.

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Question # 1

Which of the following disclosures is a municipal securities dealer required to provide its customers once every calendar year?

Options:

A.  

The firm's address

B.  

The firm's financial standing

C.  

FINRA violations of all registered representatives

D.  

The location and availability of the MSRB investor brochure

Discussion 0
Question # 2

Assuming yields are held constant, which of the following statements describes what will occur as a discount bond reaches maturity?

Options:

A.  

Its price increases.

B.  

Its price decreases.

C.  

Its par value increases.

D.  

Its par value decreases.

Discussion 0
Question # 3

The Options Clearing Corporation (OCC) is a registered clearing agency for which of the following products?

Options:

A.  

Listed stocks

B.  

Over-the-counter bonds

C.  

Exchange-traded funds (ETFs)

D.  

Long-term Equity Anticipation Securities (LEAPS)

Discussion 0
Question # 4

Under the Investment Company Act of 1940, which of the following products are considered redeemable securities?

Options:

A.  

Short-term paper

B.  

Master limited partnerships

C.  

Shares issued by a closed-end investment company

D.  

Shares of unit investment trusts (UITs) purchased through a public offering

Discussion 0
Question # 5

A customer purchases 100 shares of stock. The customer fears a decline in the share price and would like to protect his investment and minimize loss. Which of the following strategies should the customer employ to lock in his profit?

Options:

A.  

Sell a put

B.  

Sell a call

C.  

Purchase a put

D.  

Purchase a call

Discussion 0
Question # 6

An individual investor has $300,000 in cash and $400,000 in securities held with a financially troubled SIPC member firm for which liquidation has begun. The individual investor’s cash is protected for what amount?

Options:

A.  

$150,000

B.  

$250,000

C.  

$300,000

D.  

$700,000

Discussion 0
Question # 7

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 investorsexceptthat:

Options:

A.  

The IPO is expected to price in early February.

B.  

The IPO is being underwritten by Bank ABC and Bank DE

F.  

C.  

A recent industry report supports the company's valuation.

D.  

The road show will be held February 6–10 in New York and Boston.

Discussion 0
Question # 8

An investor is bullish on the technology sector and heavily invests in microchip companies. Impactful regulatory changes are announced that will negatively affect microchip manufacturing. In order to mitigate the risk to his portfolio, the investor should:

Options:

A.  

Purchase holdings uncorrelated to the technology sector.

B.  

Purchase shares of other microchip companies in the technology sector.

C.  

Sell holdings that are unaffected by the regulatory changes.

D.  

Buy more shares of the microchip companies already in his portfolio.

Discussion 0
Question # 9

Which of the following account registration types is subject to probate upon the death of the account owner?

Options:

A.  

Individual

B.  

Irrevocable trust

C.  

Transfer-on-death (TOD)

D.  

Joint tenants with right of survivorship (JTWROS)

Discussion 0
Question # 10

Beta coefficient is a measure of:

Options:

A.  

The volatility of the broad stock market.

B.  

Only the upside participation of an individual stock.

C.  

The liquidity of an individual stock relative to the sector average.

D.  

The volatility of an individual stock relative to the broad stock market.

Discussion 0
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