SIE FINRA EXAM PACKAGE ACTUAL
PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Under which of the following circumstances is an investor in a
position to acquire stock?. Answer: Buy a call, sell a call (The holder
of a call has the right to buy stock at the strike price if exercised. The
seller of a put is obligated to buy stock at the strike price if exercised)
◉ Options- a premium. Answer: the cost of an option contract,
expressed in dollars per share of the underlying stock
◉ Options- strike price. Answer: The price at which the stock will be
bought or sold if the contract is exercised, expressed in dollars per
share
◉ A customer believes that ABC's price will go up but does not have
the money to buy 100 shares right now. How could the customer use
options to profit from an increase in the stock's price?. Answer: buy
calls, write puts (both are bullish)
◉ A corporation's offer to current stockholders of the ability to
purchase a proportionate number of new shares at a specific price
for a limited time is called a. Answer: right (they usually expire in 30-
45 days)
, ◉ American depositary receipts (ADRs). Answer: issued by banks,
represent a specific number of shares of a foreign company, and
trade and pay dividends in dollars
◉ Which of the following records must be maintained for 6 years?.
Answer: Customer ledgers (statements)
◉ While underwriters can assist with preparation and filing, the
accuracy and adequacy of these documents is the responsibility of
the. Answer: Issuing corporation
◉ What institutions serve as depository and clearing facilities?.
Answer: Depository Trust Company and National Securities Clearing
Corporation (most specifically) then carrying and clearing firms can
act as these as well.
◉ What is a transfer agent?. Answer: (often a bank) for a corporation
is responsible for ensuring that its securities are issued in the correct
owner's name, canceling old and issuing new certificates, maintaining
records of ownership, and handling problems relating to lost, stolen,
or destroyed certificates
◉ What is the function of the clearing corporation?. Answer: Acting
as an intermediary in a trade, examples of these can be a commercial
bank, can be a broker-dealer but doesn't have to be
, ◉ Who is considered a control person (security). Answer: those
owned by directors, officers, or persons (which include corporations,
trusts, etc.) who own or control 10% or more of the issuer's equity
securities (an unaffiliated person would have to own 10% or more of
the outstanding shares)
◉ What are the two components of Return on Investment?. Answer:
Capital gains and income
◉ To expand the overall economy, we want to. Answer: buy
securities via open-market operations, pushing interest rates down
◉ To meet a Regulation T margin call, a customer would have how
long?. Answer: settlement plus 2 additional business days (or S + 2)
◉ What is A fully disclosed broker-dealer. Answer: one that
introduces its business to a carrying firm to clear transactions
◉ The regulation enacted by the SEC to protect the privacy of
customer information is known as. Answer: Regulation S-P
◉ A market maker that does not honor its firm quote is said to be.
Answer: "backing away"
, ◉ A deficit in the U.S. balance of payments can occur if. Answer:
interest rates in foreign countries are higher than U.S. domestic rates
and U.S. consumers are purchasing (importing) foreign goods
◉ The general partner of a limited partnership has responsibility of.
Answer: Organizing and managing the partnership, assumes
unlimited liability, and is responsible for paying all partnership debts
◉ To grow or expand the economy, U.S. fiscal policy should be to.
Answer: cut taxes (so consumers have more money to spend) and
increase government spending for programs and development (to
create more jobs)
◉ What is the federal funds rate. Answer: the rate commercial
money center banks charge each other for an overnight, unsecured
loan
◉ The Federal Open Market Committee (FOMC). Answer: buy or sell
Treasury securities in the open market. Purchases add money to the
economy, making the money available to lend more plentiful, and
sales take money out of the economy, making money available to
lend less plentiful.
◉ Reports of rising inventories generally occur during which period
of the business cycle?. Answer: Contraction, due to a lack of
consumer demand
PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Under which of the following circumstances is an investor in a
position to acquire stock?. Answer: Buy a call, sell a call (The holder
of a call has the right to buy stock at the strike price if exercised. The
seller of a put is obligated to buy stock at the strike price if exercised)
◉ Options- a premium. Answer: the cost of an option contract,
expressed in dollars per share of the underlying stock
◉ Options- strike price. Answer: The price at which the stock will be
bought or sold if the contract is exercised, expressed in dollars per
share
◉ A customer believes that ABC's price will go up but does not have
the money to buy 100 shares right now. How could the customer use
options to profit from an increase in the stock's price?. Answer: buy
calls, write puts (both are bullish)
◉ A corporation's offer to current stockholders of the ability to
purchase a proportionate number of new shares at a specific price
for a limited time is called a. Answer: right (they usually expire in 30-
45 days)
, ◉ American depositary receipts (ADRs). Answer: issued by banks,
represent a specific number of shares of a foreign company, and
trade and pay dividends in dollars
◉ Which of the following records must be maintained for 6 years?.
Answer: Customer ledgers (statements)
◉ While underwriters can assist with preparation and filing, the
accuracy and adequacy of these documents is the responsibility of
the. Answer: Issuing corporation
◉ What institutions serve as depository and clearing facilities?.
Answer: Depository Trust Company and National Securities Clearing
Corporation (most specifically) then carrying and clearing firms can
act as these as well.
◉ What is a transfer agent?. Answer: (often a bank) for a corporation
is responsible for ensuring that its securities are issued in the correct
owner's name, canceling old and issuing new certificates, maintaining
records of ownership, and handling problems relating to lost, stolen,
or destroyed certificates
◉ What is the function of the clearing corporation?. Answer: Acting
as an intermediary in a trade, examples of these can be a commercial
bank, can be a broker-dealer but doesn't have to be
, ◉ Who is considered a control person (security). Answer: those
owned by directors, officers, or persons (which include corporations,
trusts, etc.) who own or control 10% or more of the issuer's equity
securities (an unaffiliated person would have to own 10% or more of
the outstanding shares)
◉ What are the two components of Return on Investment?. Answer:
Capital gains and income
◉ To expand the overall economy, we want to. Answer: buy
securities via open-market operations, pushing interest rates down
◉ To meet a Regulation T margin call, a customer would have how
long?. Answer: settlement plus 2 additional business days (or S + 2)
◉ What is A fully disclosed broker-dealer. Answer: one that
introduces its business to a carrying firm to clear transactions
◉ The regulation enacted by the SEC to protect the privacy of
customer information is known as. Answer: Regulation S-P
◉ A market maker that does not honor its firm quote is said to be.
Answer: "backing away"
, ◉ A deficit in the U.S. balance of payments can occur if. Answer:
interest rates in foreign countries are higher than U.S. domestic rates
and U.S. consumers are purchasing (importing) foreign goods
◉ The general partner of a limited partnership has responsibility of.
Answer: Organizing and managing the partnership, assumes
unlimited liability, and is responsible for paying all partnership debts
◉ To grow or expand the economy, U.S. fiscal policy should be to.
Answer: cut taxes (so consumers have more money to spend) and
increase government spending for programs and development (to
create more jobs)
◉ What is the federal funds rate. Answer: the rate commercial
money center banks charge each other for an overnight, unsecured
loan
◉ The Federal Open Market Committee (FOMC). Answer: buy or sell
Treasury securities in the open market. Purchases add money to the
economy, making the money available to lend more plentiful, and
sales take money out of the economy, making money available to
lend less plentiful.
◉ Reports of rising inventories generally occur during which period
of the business cycle?. Answer: Contraction, due to a lack of
consumer demand
