FINRA SIE Practice Test Exam
Upon vExpiration, vall vin-the-money vS&P v100 vIndex vcall voptions vare vsettled vby vthe
vdelivery vof vwhich vof vthe vfollowing? v- v(correct vanswer) v-Cash
Which vof vthe vfollowing vstatements vis vtrue vabout vtreasury vstock? v- v(correct vanswer)
v-It vis vissued vstock vthat vhas vbeen vsubsequently vreacquired vby vthe vcorporation
In vthe vevent vof va vstock vsplit, vwhich vof vthe vfollowing vparties vis vrequired vto vmaintain
va vrecord vof vthe vshareholders veligible vto vreceive vthe vadditional vshares? v- v(correct
vanswer) v-Transfer vAgent
Which vof vthe vfollowing vactions vis vrequired vof va vbroker-dealer's vanti-money
vlaundering v(AML) vprogram? v- v(correct vanswer) v-Designating van vAML vcompliance
vofficer
A vregistered vrepresentative v(RR) vwants vto vparticipate vin va vprivate vsecurities
vtransaction. vWhich vof vthe vfollowing vactions vmust vthe vRR vtake? v- v(correct vanswer)
v-Send vwritten vnotice vto vhis vsupervisor voutlining vthe vactivity vand vcompensation
vstructure
A vcustomer vBUYS va v1 vABC vJan v35 vPUT vfor va vpremium vof v$3 vand
vsimultaneously vbuys v100 vshares vof vABC vstock vfor v$35 vper vshare. vThe vcustomer
vwill vbreak veven vwhen vthe vstock vis vselling vat vwhat vprice vper vshare vat vexpiration? v-
v(correct vanswer) v-$38
The vcall vprovision vof va vbond vstipulates vwhich vof vthe vfollowing vfactors? v- v(correct
vanswer) v-Call vdate vand vcall vprice
When vis vinterest von vTreasury vnotes vpaid? v- v(correct vanswer) v-Semiannually
The vowner vof vwhich vof vthe vfollowing vproducts vis vMOST vexposed vto vinflationary
vrisk? v- v(correct vanswer) v-Treasury vbonds v(because vit's vlong-term)
A vregistered vrepresentative v(RR) vwho vwants vto vplace va vmutual vfund vadvertisement
vmust vobtain vwritten vapproval vfrom vwhich vof vthe vfollowing vparties? v- v(correct
vanswer) v-A vregistered vprincipal vof vthe vRR's vfirm
A vcompany vannounces va vtender voffer vto vits vshareholders vwith vthe vintent vto vbuy va
vmaximum vof v1 vmillion vshares vof vits voutstanding vstock vat v$10 vper vshare vand vsets
vno vminimum vnumber vof vshares vto vbe vpurchased. vAn vinvestor vwants vto vparticipate
vin vthis voffer vand vtenders vhis v1,000 vshare vposition. vAt vthe vclose vof vthe voffer
, vperiod, vonly v900,000 vshares vhave vbeen vtendered. vHow vmany, vif vany, vof vthe
vinvestor's vshares vwill vthe vcompany vpurchase? v- v(correct vanswer) v-1,000 v(1,000 vx
v100 v= v100,000 vshares; v1 vmillion v- v900k v= v100k)
Broker-dealer vABC vseeks vto vunderwrite va vmunicipal vsecurities voffering vby va vlocal
vtown vin vwhich vthe vmayor vis vcurrently vseeking vre-election. vA vmunicipal vfinance
vprofessional vwho vresides vin vthe vtown vand vworks vfor vABC vcontributed v$200 vto vthe
vmayor's vre-election vcampaign v13 vmonths vago. vIf vthe vemployee vwants vto vsupport
vthe vcampaign vfurther vwithout vimpacting vthe vmunicipal vsecurities vbusiness vof vthe
vfirm, vhe vis vpermitted vto vmake van vadditional vcontribution vof vup vto vwhat vamount? v-
v(correct vanswer) v-$50 v($250 vis vthe vlimit vPER velection)
Which vof vthe vfollowing vstakeholders vhas vfirst vclaim vpriority vin va vChapter v11
vproceeding? v- v(correct vanswer) v-Secured vdebt vholders
[Order vof vliquidation vat vbankruptcy:
1. vUnpaid vwages
2. vTaxes v(IRS)
3. vSecured vclaims v(mortgages)
4. vSecured vliabilities v(bonds)
5. vUnsecured vliabilities v(debentures) vand vgeneral vcreditors
6. vSubordinated vdebt
7. vPreferred vStockholders
8. vCommon vstockholders]
An vinvestors vowns v100 vshares vof vXYZ vcommon vstock vat vthe vcurrent vmarket vprice
vof v$50 vper vshare. vIf vXYZ vconducts va v1-for-2 vREVERSE vstock vsplit, vthe vinvestor's
vpost-split vstock vposition vwill vbe: v- v(correct vanswer) v-50 vshares vat v$100 vper vshare
The vprimary vpurpose vof va vsyndicate vdesk vin vthe vcontext vof van vequity voffering vis
vto: v- v(correct vanswer) v-build van vorder vbook vand vallocate vthe vstock
Which vof vthe vfollowing vinvestments vare vgenerally vtraded vaccording vto vtheir
vaverage vlife vrather vthan vtheir vstated vmaturity vdates? v- v(correct vanswer) v-Asset-
backed vsecurities
UTMA v(Minor) vaccounts vare vopened vunder vthe vtax vID vof vthe: v- v(correct vanswer) v-
minor
Stability vin vthe vvalue vof vdebt vportfolio vis vgreatest vwhen: v- v(correct vanswer) v-
maturities vof vthe vdebt vsecurities vare vshort
Which vof vthe vfollowing vstatements vis vtrue vabout vall vU.S. vgovernment vagency
vissues? v- v(correct vanswer) v-They vare vexempt vfrom vregistration vunder vthe
vSecurities vAct vof v1933
Upon vExpiration, vall vin-the-money vS&P v100 vIndex vcall voptions vare vsettled vby vthe
vdelivery vof vwhich vof vthe vfollowing? v- v(correct vanswer) v-Cash
Which vof vthe vfollowing vstatements vis vtrue vabout vtreasury vstock? v- v(correct vanswer)
v-It vis vissued vstock vthat vhas vbeen vsubsequently vreacquired vby vthe vcorporation
In vthe vevent vof va vstock vsplit, vwhich vof vthe vfollowing vparties vis vrequired vto vmaintain
va vrecord vof vthe vshareholders veligible vto vreceive vthe vadditional vshares? v- v(correct
vanswer) v-Transfer vAgent
Which vof vthe vfollowing vactions vis vrequired vof va vbroker-dealer's vanti-money
vlaundering v(AML) vprogram? v- v(correct vanswer) v-Designating van vAML vcompliance
vofficer
A vregistered vrepresentative v(RR) vwants vto vparticipate vin va vprivate vsecurities
vtransaction. vWhich vof vthe vfollowing vactions vmust vthe vRR vtake? v- v(correct vanswer)
v-Send vwritten vnotice vto vhis vsupervisor voutlining vthe vactivity vand vcompensation
vstructure
A vcustomer vBUYS va v1 vABC vJan v35 vPUT vfor va vpremium vof v$3 vand
vsimultaneously vbuys v100 vshares vof vABC vstock vfor v$35 vper vshare. vThe vcustomer
vwill vbreak veven vwhen vthe vstock vis vselling vat vwhat vprice vper vshare vat vexpiration? v-
v(correct vanswer) v-$38
The vcall vprovision vof va vbond vstipulates vwhich vof vthe vfollowing vfactors? v- v(correct
vanswer) v-Call vdate vand vcall vprice
When vis vinterest von vTreasury vnotes vpaid? v- v(correct vanswer) v-Semiannually
The vowner vof vwhich vof vthe vfollowing vproducts vis vMOST vexposed vto vinflationary
vrisk? v- v(correct vanswer) v-Treasury vbonds v(because vit's vlong-term)
A vregistered vrepresentative v(RR) vwho vwants vto vplace va vmutual vfund vadvertisement
vmust vobtain vwritten vapproval vfrom vwhich vof vthe vfollowing vparties? v- v(correct
vanswer) v-A vregistered vprincipal vof vthe vRR's vfirm
A vcompany vannounces va vtender voffer vto vits vshareholders vwith vthe vintent vto vbuy va
vmaximum vof v1 vmillion vshares vof vits voutstanding vstock vat v$10 vper vshare vand vsets
vno vminimum vnumber vof vshares vto vbe vpurchased. vAn vinvestor vwants vto vparticipate
vin vthis voffer vand vtenders vhis v1,000 vshare vposition. vAt vthe vclose vof vthe voffer
, vperiod, vonly v900,000 vshares vhave vbeen vtendered. vHow vmany, vif vany, vof vthe
vinvestor's vshares vwill vthe vcompany vpurchase? v- v(correct vanswer) v-1,000 v(1,000 vx
v100 v= v100,000 vshares; v1 vmillion v- v900k v= v100k)
Broker-dealer vABC vseeks vto vunderwrite va vmunicipal vsecurities voffering vby va vlocal
vtown vin vwhich vthe vmayor vis vcurrently vseeking vre-election. vA vmunicipal vfinance
vprofessional vwho vresides vin vthe vtown vand vworks vfor vABC vcontributed v$200 vto vthe
vmayor's vre-election vcampaign v13 vmonths vago. vIf vthe vemployee vwants vto vsupport
vthe vcampaign vfurther vwithout vimpacting vthe vmunicipal vsecurities vbusiness vof vthe
vfirm, vhe vis vpermitted vto vmake van vadditional vcontribution vof vup vto vwhat vamount? v-
v(correct vanswer) v-$50 v($250 vis vthe vlimit vPER velection)
Which vof vthe vfollowing vstakeholders vhas vfirst vclaim vpriority vin va vChapter v11
vproceeding? v- v(correct vanswer) v-Secured vdebt vholders
[Order vof vliquidation vat vbankruptcy:
1. vUnpaid vwages
2. vTaxes v(IRS)
3. vSecured vclaims v(mortgages)
4. vSecured vliabilities v(bonds)
5. vUnsecured vliabilities v(debentures) vand vgeneral vcreditors
6. vSubordinated vdebt
7. vPreferred vStockholders
8. vCommon vstockholders]
An vinvestors vowns v100 vshares vof vXYZ vcommon vstock vat vthe vcurrent vmarket vprice
vof v$50 vper vshare. vIf vXYZ vconducts va v1-for-2 vREVERSE vstock vsplit, vthe vinvestor's
vpost-split vstock vposition vwill vbe: v- v(correct vanswer) v-50 vshares vat v$100 vper vshare
The vprimary vpurpose vof va vsyndicate vdesk vin vthe vcontext vof van vequity voffering vis
vto: v- v(correct vanswer) v-build van vorder vbook vand vallocate vthe vstock
Which vof vthe vfollowing vinvestments vare vgenerally vtraded vaccording vto vtheir
vaverage vlife vrather vthan vtheir vstated vmaturity vdates? v- v(correct vanswer) v-Asset-
backed vsecurities
UTMA v(Minor) vaccounts vare vopened vunder vthe vtax vID vof vthe: v- v(correct vanswer) v-
minor
Stability vin vthe vvalue vof vdebt vportfolio vis vgreatest vwhen: v- v(correct vanswer) v-
maturities vof vthe vdebt vsecurities vare vshort
Which vof vthe vfollowing vstatements vis vtrue vabout vall vU.S. vgovernment vagency
vissues? v- v(correct vanswer) v-They vare vexempt vfrom vregistration vunder vthe
vSecurities vAct vof v1933
