FINRA SIE PRACTICE FINAL PAPER 2026 TESTED
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ A company announces a tender offer to its shareholders with the
intent to buy a maximum of 1 million shares of its outstanding stock
at $10 per share and sets no minimum number of shares to be
purchased. An investor wants to participate in this offer and tenders
his 1000 share position. At the close of the offer period, only
900,000 shares have been tendered. How many, if any, of the
investor's shares will the company purchase?
A) 0
B) 100
C) 900
D) 1,000. Answer: D) 1,000
◉ Under FINRA rules, which of the following activities by a
registered representative requires written notification to her firm?
A) Volunteering as a youth soccer league coach
B) Gambling resulting in winnings in excess of $10,000
,C) Driving part time for a transportation network company on
weekends
D) Selling nonproprietary investment company securities products
through her firm. Answer: C) Driving part time for a transportation
network company on weekends
◉ The computation of dollar prices and accrued interest on
municipal bonds is normally on what calendar basis?
A) 30/360
B) 30/365
C) Actual/360
D) Actual/335. Answer: A) 30/360
◉ Which of the following statements is true regarding a customer
account held as tenants in common?
A) The owners must equally share the assets
B) The ownership of the decedent's assets is governed by their will
or state law
C) Tenants in common is permitted for use only for two individuals
D) Tenants in common is permitted for use only for married couples
or family members. Answer: B) The ownership of the decedent's
assets is governed by their will or state law
, ◉ Which of the following actions is required when a firm receives
cash in excess of $10,000 from one customer in one business day?
A) File a Currency Transaction Report (CTR)
B) File a Suspicious Activity Report (SAR) with the SEC
C) Issue a cash transfer receipt to the customer
D) Place a five-day hold on the customer's account for the funds
received. Answer: A) File a Currency Transaction Report (CTR)
◉ Which of the following communications with the public is
considered misleading?
A) Historical illustration based on factual performance
B) Product comparisons that illustrate material differences
C) A research report that includes a buy recommendation for a
specific security
D) Literature providing 10-year performance information to support
predictions of future performance. Answer: D) Literature providing
10-year performance information to support predictions of future
performance
◉ Which of the following actions violates FINRA rules regarding
selling away?
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ A company announces a tender offer to its shareholders with the
intent to buy a maximum of 1 million shares of its outstanding stock
at $10 per share and sets no minimum number of shares to be
purchased. An investor wants to participate in this offer and tenders
his 1000 share position. At the close of the offer period, only
900,000 shares have been tendered. How many, if any, of the
investor's shares will the company purchase?
A) 0
B) 100
C) 900
D) 1,000. Answer: D) 1,000
◉ Under FINRA rules, which of the following activities by a
registered representative requires written notification to her firm?
A) Volunteering as a youth soccer league coach
B) Gambling resulting in winnings in excess of $10,000
,C) Driving part time for a transportation network company on
weekends
D) Selling nonproprietary investment company securities products
through her firm. Answer: C) Driving part time for a transportation
network company on weekends
◉ The computation of dollar prices and accrued interest on
municipal bonds is normally on what calendar basis?
A) 30/360
B) 30/365
C) Actual/360
D) Actual/335. Answer: A) 30/360
◉ Which of the following statements is true regarding a customer
account held as tenants in common?
A) The owners must equally share the assets
B) The ownership of the decedent's assets is governed by their will
or state law
C) Tenants in common is permitted for use only for two individuals
D) Tenants in common is permitted for use only for married couples
or family members. Answer: B) The ownership of the decedent's
assets is governed by their will or state law
, ◉ Which of the following actions is required when a firm receives
cash in excess of $10,000 from one customer in one business day?
A) File a Currency Transaction Report (CTR)
B) File a Suspicious Activity Report (SAR) with the SEC
C) Issue a cash transfer receipt to the customer
D) Place a five-day hold on the customer's account for the funds
received. Answer: A) File a Currency Transaction Report (CTR)
◉ Which of the following communications with the public is
considered misleading?
A) Historical illustration based on factual performance
B) Product comparisons that illustrate material differences
C) A research report that includes a buy recommendation for a
specific security
D) Literature providing 10-year performance information to support
predictions of future performance. Answer: D) Literature providing
10-year performance information to support predictions of future
performance
◉ Which of the following actions violates FINRA rules regarding
selling away?
