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FINRA Practice SIE Exam Questions and
Answers 2025 Update Questions and
Answers |With 100% Verified Solutions |
Updated & Verified | 2025
Under FINRA rules, noncash compensation connected with the
sale of variable contracts includes all of the following items
EXCEPT:
gifts
meals lodging
commissions - ✔ANASWER✔-commissions
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
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permissible if the customers retain the right to sell the securities
into the open market. - ✔ANASWER✔prohibited as fraudulent
and manipulative
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 -
✔ANASWER✔-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 - ✔ANASWER✔-30/360
Blue-sky laws are regulated by which of the following entities?
SEC
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MSRB
FINRA
state securities regulators - ✔ANASWER✔-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 - ✔ANASWER✔-Warrants
Regular way settlement on Treasury Bonds is:
same day next
business day second
business day
fifth business day - ✔ANASWER✔-next business day
Under SEC S-P (Consumer Privacy), which of the following
information must a firm include in its customer privacy and opt-
out notices?
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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 -
✔ANASWER✔-the policies to protect the security of nonpublic
information
UTMA accounts are opened under the tax ID number of the:
minor donor parent
custodian - ✔ANASWER✔-minor
Describe the difference between primary distribution and
secondary distribution. - ✔ANASWER✔-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
FINRA Practice SIE Exam Questions and
Answers 2025 Update Questions and
Answers |With 100% Verified Solutions |
Updated & Verified | 2025
Under FINRA rules, noncash compensation connected with the
sale of variable contracts includes all of the following items
EXCEPT:
gifts
meals lodging
commissions - ✔ANASWER✔-commissions
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
,2|Page
permissible if the customers retain the right to sell the securities
into the open market. - ✔ANASWER✔prohibited as fraudulent
and manipulative
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 -
✔ANASWER✔-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 - ✔ANASWER✔-30/360
Blue-sky laws are regulated by which of the following entities?
SEC
,3|Page
MSRB
FINRA
state securities regulators - ✔ANASWER✔-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 - ✔ANASWER✔-Warrants
Regular way settlement on Treasury Bonds is:
same day next
business day second
business day
fifth business day - ✔ANASWER✔-next business day
Under SEC S-P (Consumer Privacy), which of the following
information must a firm include in its customer privacy and opt-
out notices?
, 4|Page
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 -
✔ANASWER✔-the policies to protect the security of nonpublic
information
UTMA accounts are opened under the tax ID number of the:
minor donor parent
custodian - ✔ANASWER✔-minor
Describe the difference between primary distribution and
secondary distribution. - ✔ANASWER✔-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
