©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:54PM.
Comprehensive SIE Practice Exam Questions
And Answers 2025 Update.
The primary purpose of a syndicate desk in the context of an equity offering is to:
build an order book and allocate the stock
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
Which of the following comparisons best describes the essential 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.
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
30/360
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
Call protection is most valuable to a bond owner when bond prices are generally:
rising
3 multiple choice options
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
3 multiple choice options
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
1
,©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:54PM.
3 multiple choice options
Which of the following actions is required of a broker-dealer's anti-money laundering (AML)
program?
Designating an AML compliance officer
3 multiple choice options
Which of the following actions violates FINRA rules regarding selling away?
Engaging in private securities transactions without written prior consent of the employing BD
3 multiple choice options
Company ABC announces a 20% stock dividend for its common shareholders. If a customer
holds 1,000 shares at $50.00, what is the new price and number of shares following the
payment of the stock dividend?
1,200 shares at $41.67
3 multiple choice options
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the following
features?
Qualified distributions are excluded from federal income tax
3 multiple choice options
AD
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
3 multiple choice options
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
3 multiple choice options
A registered representative (RR) who wants to place a mutual fund advertisement must obtain
written approval from which of the following parties?
A registered principal of the RR's firm
3 multiple choice options
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid
for what maximum period of time?
2
,©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:54PM.
13 months
3 multiple choice options
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following
products does a corporation issue?
Rights
3 multiple choice options
The call provision of a bond stipulates which of the following factors?
Call date and call price
3 multiple choice options
A decline in the gross domestic product (GDP) must last for at least how many quarters to be
considered a recession?
2 quarters
3 multiple choice options
Regular way settlement on Treasury bonds is:
next business day
3 multiple choice options
Which of the following statements is true regarding a customer account held as tenants in
common?
The ownership of the decedent's assets is governed by their will or state law.
3 multiple choice options
Which of the following statements is true about treasury stock?
It is issued stock that has been subsequently reacquired by the corporation
3 multiple choice options
AD
Which of the following investment risks is the greatest risk in a variable life insurance policy?
Market risk
3 multiple choice options
In the event of a stock split, which of the following parties is required to maintain a record of
the shareholders eligible to receive the additional shares?
Transfer agent
3
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:54PM.
3 multiple choice options
UTMA accounts are opened under the tax ID of the:
minor
3 multiple choice options
Under industry regulations, an initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of:
$2,000
3 multiple choice options
At issue, which of the following debt securities mature in one year or less?
Money market instruments
3 multiple choice options
Which of the following considerations should a registered representative explain to a customer
when recommending a 529 savings plan?
The potential deductibility of contributions from state taxes
3 multiple choice options
A transaction in which a writer covers a position by purchasing an option is called:
a closing purchase
3 multiple choice options
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 13 months ago.
If the employee wants to support the campaign further without impacting the municipal
securities business of the firm, he is permitted to make an additional contribution of up to what
amount?
$50
3 multiple choice options
In which of the following situations is an employee of a public company permitted to trade
upon information without violating insider trading laws?
An independent securities analyst explains to the employee why the earnings for the company
next quarter could be markedly poorer than expected.
3 multiple choice options
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding?
4
Comprehensive SIE Practice Exam Questions
And Answers 2025 Update.
The primary purpose of a syndicate desk in the context of an equity offering is to:
build an order book and allocate the stock
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
Which of the following comparisons best describes the essential 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.
The computation of dollar prices and accrued interest on municipal bonds is normally on what
calendar basis?
30/360
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
Call protection is most valuable to a bond owner when bond prices are generally:
rising
3 multiple choice options
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
3 multiple choice options
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
1
,©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:54PM.
3 multiple choice options
Which of the following actions is required of a broker-dealer's anti-money laundering (AML)
program?
Designating an AML compliance officer
3 multiple choice options
Which of the following actions violates FINRA rules regarding selling away?
Engaging in private securities transactions without written prior consent of the employing BD
3 multiple choice options
Company ABC announces a 20% stock dividend for its common shareholders. If a customer
holds 1,000 shares at $50.00, what is the new price and number of shares following the
payment of the stock dividend?
1,200 shares at $41.67
3 multiple choice options
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the following
features?
Qualified distributions are excluded from federal income tax
3 multiple choice options
AD
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
3 multiple choice options
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
3 multiple choice options
A registered representative (RR) who wants to place a mutual fund advertisement must obtain
written approval from which of the following parties?
A registered principal of the RR's firm
3 multiple choice options
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is valid
for what maximum period of time?
2
,©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:54PM.
13 months
3 multiple choice options
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the following
products does a corporation issue?
Rights
3 multiple choice options
The call provision of a bond stipulates which of the following factors?
Call date and call price
3 multiple choice options
A decline in the gross domestic product (GDP) must last for at least how many quarters to be
considered a recession?
2 quarters
3 multiple choice options
Regular way settlement on Treasury bonds is:
next business day
3 multiple choice options
Which of the following statements is true regarding a customer account held as tenants in
common?
The ownership of the decedent's assets is governed by their will or state law.
3 multiple choice options
Which of the following statements is true about treasury stock?
It is issued stock that has been subsequently reacquired by the corporation
3 multiple choice options
AD
Which of the following investment risks is the greatest risk in a variable life insurance policy?
Market risk
3 multiple choice options
In the event of a stock split, which of the following parties is required to maintain a record of
the shareholders eligible to receive the additional shares?
Transfer agent
3
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:54PM.
3 multiple choice options
UTMA accounts are opened under the tax ID of the:
minor
3 multiple choice options
Under industry regulations, an initial purchase of $3,000 of common stock in a margin account
requires a cash deposit of:
$2,000
3 multiple choice options
At issue, which of the following debt securities mature in one year or less?
Money market instruments
3 multiple choice options
Which of the following considerations should a registered representative explain to a customer
when recommending a 529 savings plan?
The potential deductibility of contributions from state taxes
3 multiple choice options
A transaction in which a writer covers a position by purchasing an option is called:
a closing purchase
3 multiple choice options
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 13 months ago.
If the employee wants to support the campaign further without impacting the municipal
securities business of the firm, he is permitted to make an additional contribution of up to what
amount?
$50
3 multiple choice options
In which of the following situations is an employee of a public company permitted to trade
upon information without violating insider trading laws?
An independent securities analyst explains to the employee why the earnings for the company
next quarter could be markedly poorer than expected.
3 multiple choice options
Which of the following stakeholders has first claim priority in a Chapter 11 proceeding?
4
