SIE Exam - Finra Example
In which of the follow situations is an employee of a public company permitted to trade
upon information without violating insider trading laws - ANSWER An independent
securities analyst explains for the company next quarter could be markedly poorer than
expected
Under rule 144A, an issuer of a restricted stock is permitted to sell to which of the
following investors - ANSWER Qualified Institutional Buyers (QIBs)
A registered representative (RR) wants to participate in a private securities transaction.
Which of the following actions must the RR take - ANSWER Send written notice to his
supervisor outlining the activity and compensation structure
Direct Participation Programs (DPP) provide: - ANSWER exposure to non-correlated
assets with steady returns
A decline is the gross domestic product (GDP) must last for at least how many quarters
to be considered a recession - ANSWER 2
Which of the following comparisons best describes the essential difference between a
primary distribution and a secondary distribution - ANSWER A primary distribution
involves a sale of newly issued shares by the issuer while a secondary distribution
involved the sale of already issued and outstanding shares
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement - ANSWER Quarterly
Which of the following communications with the public is considered misleading -
ANSWER Literature providing 10-year performance information to support predictions of
future performance
Which of the following form U4 reportable events results in a statutory disqualification -
ANSWER A felony conviction for a driving under the influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life insurance
policy - ANSWER Market risk
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding -
ANSWER Secured debt holder
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items except: - ANSWER commisions
The redemption value of an open-end investment company shares is based on the -
ANSWER NAV computed after the order is received
, SIE Exam - Finra Example
The owner of which the following products is the most exposed to inflationary risk -
ANSWER Treasury bonds
Which of the following statements is true regarding a customer account held as tenants
in common - ANSWER The ownership for the decedent's assets is governed by their
will or state law
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration - ANSWER $38
When is interest on treasury notes paid - ANSWER Semiannually
Blue-Sky laws are regulated by which of the following entities - ANSWER State
securities regulators
A broker-dealer is permitted to accept payment for a new issue from a new customer
when the - ANSWER Registration is effective
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions - ANSWER The same stock in a cash
account without paying for the stock in full
In the over-the-counter market, the term "spread" refers to the difference between the: -
ANSWER bid and asked prices
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at - ANSWER a
premium
A registered representative is reviewing the following portfolio:
30% ABC Energy Company
30% XYZ Health Care Firm
30% Exchange-traded fund
10% Money Market Funds
Which of the following risks in inherent in this portfolio - ANSWER Non-systematic
Which of the following statements is true regarding the concept of an annuity contract -
ANSWER The kind of annuity selected partly determines the payment amounts to the
annuitant
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in
which the mayor is currently seeking re-election. A municipal finance professional who
resides in the town and works for ABC contributed $200 to the mayor's re-election
campaign further without impacting the municipal securities business of the firm, he is
permitted to make an additional contribution of up to what amount. - ANSWER $50
In which of the follow situations is an employee of a public company permitted to trade
upon information without violating insider trading laws - ANSWER An independent
securities analyst explains for the company next quarter could be markedly poorer than
expected
Under rule 144A, an issuer of a restricted stock is permitted to sell to which of the
following investors - ANSWER Qualified Institutional Buyers (QIBs)
A registered representative (RR) wants to participate in a private securities transaction.
Which of the following actions must the RR take - ANSWER Send written notice to his
supervisor outlining the activity and compensation structure
Direct Participation Programs (DPP) provide: - ANSWER exposure to non-correlated
assets with steady returns
A decline is the gross domestic product (GDP) must last for at least how many quarters
to be considered a recession - ANSWER 2
Which of the following comparisons best describes the essential difference between a
primary distribution and a secondary distribution - ANSWER A primary distribution
involves a sale of newly issued shares by the issuer while a secondary distribution
involved the sale of already issued and outstanding shares
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement - ANSWER Quarterly
Which of the following communications with the public is considered misleading -
ANSWER Literature providing 10-year performance information to support predictions of
future performance
Which of the following form U4 reportable events results in a statutory disqualification -
ANSWER A felony conviction for a driving under the influence (DUI) charge
Which of the following investment risks is the greatest risk in a variable life insurance
policy - ANSWER Market risk
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding -
ANSWER Secured debt holder
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items except: - ANSWER commisions
The redemption value of an open-end investment company shares is based on the -
ANSWER NAV computed after the order is received
, SIE Exam - Finra Example
The owner of which the following products is the most exposed to inflationary risk -
ANSWER Treasury bonds
Which of the following statements is true regarding a customer account held as tenants
in common - ANSWER The ownership for the decedent's assets is governed by their
will or state law
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration - ANSWER $38
When is interest on treasury notes paid - ANSWER Semiannually
Blue-Sky laws are regulated by which of the following entities - ANSWER State
securities regulators
A broker-dealer is permitted to accept payment for a new issue from a new customer
when the - ANSWER Registration is effective
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer
opens and closes which of the following positions - ANSWER The same stock in a cash
account without paying for the stock in full
In the over-the-counter market, the term "spread" refers to the difference between the: -
ANSWER bid and asked prices
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at - ANSWER a
premium
A registered representative is reviewing the following portfolio:
30% ABC Energy Company
30% XYZ Health Care Firm
30% Exchange-traded fund
10% Money Market Funds
Which of the following risks in inherent in this portfolio - ANSWER Non-systematic
Which of the following statements is true regarding the concept of an annuity contract -
ANSWER The kind of annuity selected partly determines the payment amounts to the
annuitant
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in
which the mayor is currently seeking re-election. A municipal finance professional who
resides in the town and works for ABC contributed $200 to the mayor's re-election
campaign further without impacting the municipal securities business of the firm, he is
permitted to make an additional contribution of up to what amount. - ANSWER $50
