SIE FINRA PRACTICE EXAM QUESTIONS &
ELABORATED ANSWERS PASSED 100%
1. A member of a stock exchange responsible for provid- a market maker
ing liquidity in a security by being willing to buy
and sell at all times
2. A transaction in which a writer covers a position a closing purchase
by purchasing an option
3. An RR wants to participate in a private securities trans- Send written notice to
his
action. What does the RR need to do? supervisor outlining the
activity and
compensation
4. To sell a substantial amount of the securities to structure
its customers, the firm agrees to repurchase the
shares at no less than the original sales price Prohibited as fraudulent and
manupualtive
5. Under the securities act of 1933, registration is
re-quired for
6. Under SEC Regulation S-P (Consumer Privacy), America Depositary Re-
which of the following information must a firm ceipts (ADRs)
include in its customer privacy and opt-out
notices? The policies to protect the
security of nonpublic
in-formation
7. Direct Participation Program (DPP) provide: exposure to non-
correlat-
ed assets with steady
re-
turns
8. Which of the following considerations should a 9. Roth 401(k)
regis-tered representative explain to a customer and Roth
when rec-ommending a 529 savings plan? individual
retirement
1/
9
, SIE FINRA PRACTICE EXAM QUESTIONS &
ELABORATED ANSWERS PASSED 100%
account (IRA) plans share which of the The potential
following features?
deductibility of
contributions from
state taxes
2/
9
ELABORATED ANSWERS PASSED 100%
1. A member of a stock exchange responsible for provid- a market maker
ing liquidity in a security by being willing to buy
and sell at all times
2. A transaction in which a writer covers a position a closing purchase
by purchasing an option
3. An RR wants to participate in a private securities trans- Send written notice to
his
action. What does the RR need to do? supervisor outlining the
activity and
compensation
4. To sell a substantial amount of the securities to structure
its customers, the firm agrees to repurchase the
shares at no less than the original sales price Prohibited as fraudulent and
manupualtive
5. Under the securities act of 1933, registration is
re-quired for
6. Under SEC Regulation S-P (Consumer Privacy), America Depositary Re-
which of the following information must a firm ceipts (ADRs)
include in its customer privacy and opt-out
notices? The policies to protect the
security of nonpublic
in-formation
7. Direct Participation Program (DPP) provide: exposure to non-
correlat-
ed assets with steady
re-
turns
8. Which of the following considerations should a 9. Roth 401(k)
regis-tered representative explain to a customer and Roth
when rec-ommending a 529 savings plan? individual
retirement
1/
9
, SIE FINRA PRACTICE EXAM QUESTIONS &
ELABORATED ANSWERS PASSED 100%
account (IRA) plans share which of the The potential
following features?
deductibility of
contributions from
state taxes
2/
9
