FINRA Practice SIE Exam
The redemption value of an open-end investment company's shares is based on 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 computation of dollar prices and accrued interest on municipal bonds is normal on
what calendar basis?
30/360
30/365
Actual/360
Actual/365 - Answer 30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - Answer State securities regulators
At the time of issuance, which of the following securities normally 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. 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.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately sets aside funds for the repurchase
permissible if the customers retain 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 information must a firm
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
the policies to protect the security of nonpublic information - Answer the 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 primary distribution and 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 posts a quotes of 10.00 - 10.10 (25x10), which of the following
actions is the market maker willing to take?
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
All of the following risks apply to both foreign and domestic debt instruments EXCEPT:
political
exchange
repayment
interest rate - Answer exchange
A married couple who earned income that exceeded $300k in each of the prior two
years and reasonably expects the same for this current year is:
a qualified investor
an accredited investor
an institutional investor
a qualified institutional buyer - Answer an accredited investor
The redemption value of an open-end investment company's shares is based on 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 computation of dollar prices and accrued interest on municipal bonds is normal on
what calendar basis?
30/360
30/365
Actual/360
Actual/365 - Answer 30/360
Blue-sky laws are regulated by which of the following entities?
SEC
MSRB
FINRA
state securities regulators - Answer State securities regulators
At the time of issuance, which of the following securities normally 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. 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.
Permissible if the securities are deposited into escrow.
prohibited unless the firm immediately sets aside funds for the repurchase
permissible if the customers retain 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 information must a firm
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
the policies to protect the security of nonpublic information - Answer the 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 primary distribution and 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 posts a quotes of 10.00 - 10.10 (25x10), which of the following
actions is the market maker willing to take?
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
All of the following risks apply to both foreign and domestic debt instruments EXCEPT:
political
exchange
repayment
interest rate - Answer exchange
A married couple who earned income that exceeded $300k in each of the prior two
years and reasonably expects the same for this current year is:
a qualified investor
an accredited investor
an institutional investor
a qualified institutional buyer - Answer an accredited investor
