FINRA Practice SIE Exam 100% Correct Answers
The NAV of the shares to be redeemed of an open-end investment company is
determined by the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - ANSWER NAV computed after the
order is received
The normal computation dollar prices and accrued interest on municipal bonds is done
on which of the following calendar bases?
30/360
30/365
Actual/360
Actual/365 - ANSWER 30/360
Which of the following is the regulating agency for Blue-sky laws?
SEC
MSRB
FINRA
state securities regulators - ANSWER State securities regulators
Which of the following securities, at the time of issuance, typically has the longest
period to expiration?
Rights
Options
,Warrants
Repurchase agreements - ANSWER Warrants
Regular way settlement on Treasury Bonds is:
same day
next business day
second business day
fifth business day - ANSWER next business day
A firm is a participant in a public offering. In order to sell a large quantity of the
securities to its customers, the firm agrees to buy back the shares at no less than the
original sale price. Such agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately deposits funds necessary for the repurchase
permissible provided the customers have the right to sell the securities into the open
market. - ANSWER prohibited as fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following is something a firm MUST
include in its customer privacy and opt-out notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
policies to protect the security of nonpublic information ANSWER policies to protect the
security of nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
, parent
custodian ANSWER minor
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items EXCEPT:
gifts
meals
lodging
commissions ANSWER commissions
Describe the 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 involves the sale of already issued and outstanding
shares
If a market maker has posted a quotes of 10.00 -- 10.10 (25 x 10), which of the following
actions is the market maker willing to?
sell 1,000 shares at $10 and buy 2,500 shares at $10.10
buy 2,500 shares at $10 and sell 1,000 shares at $10.10
sell 100 shares at $10 and buy 250 shares at $10.10
buy 250 shares at $10 and sell 100 shares at $10.10 - ANSWER buy 2,500 shares at $10
and sell 1,000 shares at $10.10
Which one of the following risks relates to both foreign and domestic debt instruments
EXCEPT?
political
exchange
repayment
interest rate - ANSWER exchange
The NAV of the shares to be redeemed of an open-end investment company is
determined by the:
previous offering price
previous closing NAV
NAV computed after the order is received
offering price computed after the order is received - ANSWER NAV computed after the
order is received
The normal computation dollar prices and accrued interest on municipal bonds is done
on which of the following calendar bases?
30/360
30/365
Actual/360
Actual/365 - ANSWER 30/360
Which of the following is the regulating agency for Blue-sky laws?
SEC
MSRB
FINRA
state securities regulators - ANSWER State securities regulators
Which of the following securities, at the time of issuance, typically has the longest
period to expiration?
Rights
Options
,Warrants
Repurchase agreements - ANSWER Warrants
Regular way settlement on Treasury Bonds is:
same day
next business day
second business day
fifth business day - ANSWER next business day
A firm is a participant in a public offering. In order to sell a large quantity of the
securities to its customers, the firm agrees to buy back the shares at no less than the
original sale price. Such agreements are:
prohibited as fraudulent and manipulative.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately deposits funds necessary for the repurchase
permissible provided the customers have the right to sell the securities into the open
market. - ANSWER prohibited as fraudulent and manipulative
Under SEC S-P (Consumer Privacy), which of the following is something a firm MUST
include in its customer privacy and opt-out notices?
the address of the firm's website
the fee to opt out from the privacy program
the deadline by which to opt out from the privacy program
policies to protect the security of nonpublic information ANSWER policies to protect the
security of nonpublic information
UTMA accounts are opened under the tax ID number of the:
minor
donor
, parent
custodian ANSWER minor
Under FINRA rules, noncash compensation connected with the sale of variable
contracts includes all of the following items EXCEPT:
gifts
meals
lodging
commissions ANSWER commissions
Describe the 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 involves the sale of already issued and outstanding
shares
If a market maker has posted a quotes of 10.00 -- 10.10 (25 x 10), which of the following
actions is the market maker willing to?
sell 1,000 shares at $10 and buy 2,500 shares at $10.10
buy 2,500 shares at $10 and sell 1,000 shares at $10.10
sell 100 shares at $10 and buy 250 shares at $10.10
buy 250 shares at $10 and sell 100 shares at $10.10 - ANSWER buy 2,500 shares at $10
and sell 1,000 shares at $10.10
Which one of the following risks relates to both foreign and domestic debt instruments
EXCEPT?
political
exchange
repayment
interest rate - ANSWER exchange
