FINRA SIE PRACTICE TEST QUESTIONS and Answers 2023

The owner of which of the following products is MOST exposed to inflationary risk? Treasury Bonds have a higher inflationary risk than Blue chip industries, T-Bills, or Utility stocks. Which of the following considerations should a registered representative explain t a customer when recommending a 529 college savings plan? The potential deductibility of contributions from state taxes. 01:01 01:31 To offer its shareholders a privilege to obtain its shares at a fixed price, which products does a corporation issue? Rights Political campaign contribution limit? $250 A registered representative (RR) who wants to place a mutual fund advertisement must obtain written approval from from which party? A registered principal of the RR's firm. If a market maker post a quote of 10.00-10.10 (25x10) which of the following actions is the market maker willing to take? Buy 2,500 shares at $10.00 and sell 1,000 shares at 10.10. A transaction in which a writer covers a position by purchasing an option is called? A closing purchase. Under Federal Reserve Regulation T, a 90-day restriction is imposed when a customer opens and closes which of the following positions? The same stock in a cash account without paying for the stock in full. Letter of Intent is valid for? 13 months Under rule 144A, an issuer of restricted stock is permitted to sell to which type of investor? Qualified institutional buyers (QB's) A member of a stock exchange responsible for providing liquidity in a security buy being willing to buy and sell at all times is known as? A Marker Maker. Which of the following security types provides investors with a stated maturity date, a floating interest rate, and an option to put the society back to a financial intermediary on a daily or weekly basis? Variable rate demand note. Which of the following statements is true regarding the concept of annuity contracts? The kind of annuity selected partly determines the payment amounts to the annuitant. Blue-sky laws are regulated by which of the following entities? State securities regulators. Under the securities act of 1933, registration is required for these securities? American depository receipts (ADRs) UTMA accounts are opened under the tax ID of the? Minor. A broker-dealer is permitted to accept payment for a new issues from a new customer when the: Registration is effective. Under industry regulations, an initial purchase of $3,000 of common stock in a margin account requires a cash deposit of? $2,000 Roth 401 (k) and Roth individual retirement account (IRA) plans share which of the following features? Qualified distributions are excluded from federal income tax. Accredited Investor an organization or individual investor who meets certain criteria established by the SEC and so qualifies to invest in unregistered securities. 200k Annual income (single) 300k married the last two yrs with a reasonable expectation of having the same income next yr. /1 mil excluding primary residence. The call provision of a bond stipulates... The call date and call price. Difference between a primary distribution and a secondary distribution? A primary distribution involves a sale of newly issued shares by the issuer while a secondary distribution involves the sale of already issued and outstanding shares. What is the cost basis of an inherited mutual fund? The net asset value (NAV) of the shares when the owner dies. Selling away Engaging in private securities transactions without written prior consent of the employing BD. Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program? Designating an AML compliance officer Direct participation programs (Dpps) provide? Liquidity and transparency. A registered representative (RR) wants to participate in a private securities transactions. Which of the following actions must the RR take? Send written notice to his supervisor outlining the activity and compensation structure. Regarding tenants in commons a decedent... The ownership of the decedent's assets is governed by their will or state. An associated person who is not a registered representative is permitted to engage in which of the following activities? Provide account opening forms to a new customer. The redemption value of an open-end investment company's shares is based on the? NAV computed after the order is received. A firm is a participant in a public offering. To sell a substantial amount of the securities to its customers, the firm agrees to repurchase the shares at no less than the original sales price. Such agreements are: Prohibited as fraudulent and manipulative. Upon expiration of in-the-money S&P 100 index call options are settled by the delivery of .... Cash The effect of a stock-split? The price per share of common stock decreases. Under a systematic of statutory voting, a commons stockholder has as many votes for each vacancy on the board of directors as the number of: Share owned by the stockholder. Regular way settlement on Treasury bonds is: Next business day. All U.S. government agency issues: Are exempt from registration under the Securities Act of 1933. In a stock-split: The price per share of common stock decreases. The computation of dollar price and accrues interest on municipal bonds is normally on what calendar basis? 30/360