EXAMFX SIE- EXAM 2024/2025 WELL UPDATED
WITH A+ VERIFIED QUESTIONS AND CORRECT
ANSWERS
At what age may a taxpayer start making additional catch-up contributions to an IRA? -
CORRECT ANSWER Age 50
Whose Social Security number must appear on a UGMA (Uniform Gift to Minors Act)
account? - CORRECT ANSWER The minor's
What terms describes the process of moving retirement plan assets from one custodian
directly to another custodian, without the account owner ever touching the assets? -
CORRECT ANSWER Transfer
An account under the UGMA earned $8,500 in in interest income from bonds. The
minor is 13 years old. How is this interest income taxed? - CORRECT ANSWER A
portion is taxed at the minor's rate, and a portion is taxed at the parent's rate.
When must Suspicious Activity Reports (SAR) be filed with FinCEN (Financial Crimes
Enforcement Network)? - CORRECT ANSWER Within 30 days of initial discovery of
suspicious transaction
What type of an account is required for a customer to sell stock short? - CORRECT
ANSWER Margin account
What is Form NRF? - CORRECT ANSWER Non-registered fingerprint
In compliance with FINRA conduct rules, what determines if a recommendation is
appropriate for a customer? - CORRECT ANSWER The customer's suitability for the
investment
Telemarketing calls cannot be made to a private residence before what time of day? -
CORRECT ANSWER8:00 AM in the called person's time zone
A margin account has a debit balance of $10,000; the customer receives cash dividends
of $500. What is the new debit balance? - CORRECT ANSWER $9,500
A registered person may share in the profits and losses of a customer account in direct
proportion to their contribution to the account and with written authorization from whom?
- CORRECT ANSWER The customer and the member firm
,What documentation of trading authority is required for a corporate account? -
CORRECT ANSWER A copy of the corporate resolution designating the person who
has trading authority over the account
How often are members required to send account statements for all account? -
CORRECT ANSWER Once every calendar quarter
Where must agents be registered? - CORRECT ANSWER In each state in which they
effect or attempt to effect securities transactions
What is the term for excessive trading in size or frequency for the purpose of generating
commissions? - CORRECT ANSWER Churning
If the member first requests Form U5 from the application, the form must be provided
within what time period? - CORRECT ANSWER 2 business days
According to FINRA rules, how often is a member firm required to review its training
needs and develop a written training plan? - CORRECT ANSWER At least annually
What FINRA Department hears customer complains? - CORRECT ANSWER The
Department of Enforcement
An agent sells limited partnerships on the side without the knowledge or consent of his
broker/dealer. What is the term for this violation? - CORRECT ANSWER Selling away
What are private securities transactions of an associated person? - CORRECT
ANSWER Transactions effected outside the normal business of an associated person's
employment with a member firm
Subject to contribution limits, under what conditions may a municipal finance
professional (MFP) make a contribution to political candidates running for office, without
affecting their firm's ability to participate in negotiated underwritings? - CORRECT
ANSWER MFP must have the ability to vote for the candidate, and the contribution is
limited to no more than $250 per election.
A registered person terminates employment with a member firm. Who is responsible for
filing Form U5 with FINRA? - CORRECT ANSWER The member firm
What types of noncash compensation arrangements are permitted for members and
associated persons? - CORRECT ANSWER 1. Gifts that do not exceed n annual
amount of $100 per person and are not preconditioned on achievement of a sales
target; 2). An occasional meal, a ticket to a sporting event or the theater, or comparable
entertainment; and 3). Payment or reimbursement for meetings held by an offeror or by
a member for the purpose of training or education of associated persons of a member
, What must an associated person do prior to entering into a private transaction? -
CORRECT ANSWER Provide written notice to the member firm
Members are required to report financial events specifically related to any bankruptcy
that happened within how many years? - CORRECT ANSWER The past 10 years
What are the 2 components of the required continuing education for registered
persons? - CORRECT ANSWER Regulatory element and firm element
An associated person became registered 2017. In what year will the associated person
be required to complete the Regulatory Element of the Continuing Education
requirement for the first time? - CORRECT ANSWER 2019
All firms must be registered with what entity or entities? - CORRECT ANSWER SEC
and FINRA
A customer who purchases securities in a cash or margin account must pay for the
securities in - CORRECT ANSWER 4 business days
What are the main functions of the Securities and Exchange Commission (SEC)? -
CORRECT ANSWER To protect investors; maintain fair, orderly, and efficient markets;
and facilitate capital information
What type of entities enforce the securities laws imposed by the SEC? - CORRECT
ANSWER The self-regulatory (SROs), including FINRA
What are the 4 main categories of FINRA by-laws? - CORRECT ANSWER The uniform
practice code, rules of conduct, the code of procedure, and the code of arbitration
A customer's account would be frozen for 90 days if the cusomter - CORRECT
ANSWER Failed to deliver payment within 4 business days of purchase.
MSRB rules do not permit I. Bona fide quotes distributed as offers. II. Nominal quotes
distributed as bids. III. Nominal quotes distributed as offers. IV. Nominal quotes
distributed as workouts - CORRECT ANSWER II and III.
Bona fide quotes are equivalent to firm (binding) quotes and are allowed as bids or
offers. Nominal quotes are subject to confirmation, or nonbinding. They are given as
"workouts" between traders, or are information only and are not allowed as either
binding bids or offers.
Who enforces MSRB rules on NYSE member firms? - CORRECT ANSWER FINRA
MSRB rules are enforced for broker/dealers by FINRA and the SEC. For bank dealers,
the MSRB rules are enforced by FDIC, FRB and Office of Comptroller of the Currency.
WITH A+ VERIFIED QUESTIONS AND CORRECT
ANSWERS
At what age may a taxpayer start making additional catch-up contributions to an IRA? -
CORRECT ANSWER Age 50
Whose Social Security number must appear on a UGMA (Uniform Gift to Minors Act)
account? - CORRECT ANSWER The minor's
What terms describes the process of moving retirement plan assets from one custodian
directly to another custodian, without the account owner ever touching the assets? -
CORRECT ANSWER Transfer
An account under the UGMA earned $8,500 in in interest income from bonds. The
minor is 13 years old. How is this interest income taxed? - CORRECT ANSWER A
portion is taxed at the minor's rate, and a portion is taxed at the parent's rate.
When must Suspicious Activity Reports (SAR) be filed with FinCEN (Financial Crimes
Enforcement Network)? - CORRECT ANSWER Within 30 days of initial discovery of
suspicious transaction
What type of an account is required for a customer to sell stock short? - CORRECT
ANSWER Margin account
What is Form NRF? - CORRECT ANSWER Non-registered fingerprint
In compliance with FINRA conduct rules, what determines if a recommendation is
appropriate for a customer? - CORRECT ANSWER The customer's suitability for the
investment
Telemarketing calls cannot be made to a private residence before what time of day? -
CORRECT ANSWER8:00 AM in the called person's time zone
A margin account has a debit balance of $10,000; the customer receives cash dividends
of $500. What is the new debit balance? - CORRECT ANSWER $9,500
A registered person may share in the profits and losses of a customer account in direct
proportion to their contribution to the account and with written authorization from whom?
- CORRECT ANSWER The customer and the member firm
,What documentation of trading authority is required for a corporate account? -
CORRECT ANSWER A copy of the corporate resolution designating the person who
has trading authority over the account
How often are members required to send account statements for all account? -
CORRECT ANSWER Once every calendar quarter
Where must agents be registered? - CORRECT ANSWER In each state in which they
effect or attempt to effect securities transactions
What is the term for excessive trading in size or frequency for the purpose of generating
commissions? - CORRECT ANSWER Churning
If the member first requests Form U5 from the application, the form must be provided
within what time period? - CORRECT ANSWER 2 business days
According to FINRA rules, how often is a member firm required to review its training
needs and develop a written training plan? - CORRECT ANSWER At least annually
What FINRA Department hears customer complains? - CORRECT ANSWER The
Department of Enforcement
An agent sells limited partnerships on the side without the knowledge or consent of his
broker/dealer. What is the term for this violation? - CORRECT ANSWER Selling away
What are private securities transactions of an associated person? - CORRECT
ANSWER Transactions effected outside the normal business of an associated person's
employment with a member firm
Subject to contribution limits, under what conditions may a municipal finance
professional (MFP) make a contribution to political candidates running for office, without
affecting their firm's ability to participate in negotiated underwritings? - CORRECT
ANSWER MFP must have the ability to vote for the candidate, and the contribution is
limited to no more than $250 per election.
A registered person terminates employment with a member firm. Who is responsible for
filing Form U5 with FINRA? - CORRECT ANSWER The member firm
What types of noncash compensation arrangements are permitted for members and
associated persons? - CORRECT ANSWER 1. Gifts that do not exceed n annual
amount of $100 per person and are not preconditioned on achievement of a sales
target; 2). An occasional meal, a ticket to a sporting event or the theater, or comparable
entertainment; and 3). Payment or reimbursement for meetings held by an offeror or by
a member for the purpose of training or education of associated persons of a member
, What must an associated person do prior to entering into a private transaction? -
CORRECT ANSWER Provide written notice to the member firm
Members are required to report financial events specifically related to any bankruptcy
that happened within how many years? - CORRECT ANSWER The past 10 years
What are the 2 components of the required continuing education for registered
persons? - CORRECT ANSWER Regulatory element and firm element
An associated person became registered 2017. In what year will the associated person
be required to complete the Regulatory Element of the Continuing Education
requirement for the first time? - CORRECT ANSWER 2019
All firms must be registered with what entity or entities? - CORRECT ANSWER SEC
and FINRA
A customer who purchases securities in a cash or margin account must pay for the
securities in - CORRECT ANSWER 4 business days
What are the main functions of the Securities and Exchange Commission (SEC)? -
CORRECT ANSWER To protect investors; maintain fair, orderly, and efficient markets;
and facilitate capital information
What type of entities enforce the securities laws imposed by the SEC? - CORRECT
ANSWER The self-regulatory (SROs), including FINRA
What are the 4 main categories of FINRA by-laws? - CORRECT ANSWER The uniform
practice code, rules of conduct, the code of procedure, and the code of arbitration
A customer's account would be frozen for 90 days if the cusomter - CORRECT
ANSWER Failed to deliver payment within 4 business days of purchase.
MSRB rules do not permit I. Bona fide quotes distributed as offers. II. Nominal quotes
distributed as bids. III. Nominal quotes distributed as offers. IV. Nominal quotes
distributed as workouts - CORRECT ANSWER II and III.
Bona fide quotes are equivalent to firm (binding) quotes and are allowed as bids or
offers. Nominal quotes are subject to confirmation, or nonbinding. They are given as
"workouts" between traders, or are information only and are not allowed as either
binding bids or offers.
Who enforces MSRB rules on NYSE member firms? - CORRECT ANSWER FINRA
MSRB rules are enforced for broker/dealers by FINRA and the SEC. For bank dealers,
the MSRB rules are enforced by FDIC, FRB and Office of Comptroller of the Currency.
