STC SIE ACTUAL CERTIFICATION TEST 2026
QUESTIONS WITH SOLUTIONS GRADED A+
● Which of the following choices would NOT be subject to the holding
period restriction under Rule 144?
A. Restricted stock acquired under an investment letter
B. Restricted stock acquired under a stock option plan
C. Control stock acquired under a private placement
D. Control stock acquired through an open-market purchase. Answer: D.
Control stock acquired through an open-market purchase
There is a required holding period of six months for all restricted stock.
Restricted stock is unregistered stock that was acquired as a result of a
private placement. There is no required holding period for control stock.
However, if an affiliate (control person) acquires stock as a result of a
private placement, this stock would be considered restricted stock rather
than control stock and would be subject to the holding period. Control
stock acquired as a result of an open-market purchase is exempt from the
holding period.
● The investments that tend to perform the WORST during periods of
inflation are:
,A. Bonds
B. Mutual Funds
C. ETFs
D. Gold and Silver. Answer: A. Bonds
● If a customer exceeds SIPC limits:
A. The customer will receive cash rather than his securities
B. The customer is a secured creditor
C. The customer doesn't have a claim to the excess amount
D. The customer is a general creditor. Answer: D. The customer is a
general creditor
● When discussing the purchase of a variable annuity with a client, the
RR is not required to disclose:
A. Surrender fees
B. Mortality fees
C. Probate fees
D. Administrative fees. Answer: C. Probate fees
,Probate fees and costs are associated with establishing the validity of a
will, which is not a disclosure item for annuities. However, surrender,
mortality, and administrative fees must be disclosed
● Jamie has inherited 500 shares of an investment company. She calls
her broker to redeem the shares and is informed that the kind of
investment company she owns makes no provision for future purchases
or redemptions. What kind of investment company does she own?
A. An open-end fund
B. A closed-end fund
C. A unit investment trust
D. A face-amount certificate company. Answer: B. A closed-end fund
A closed-end fund makes no provision for future purchases or
redemptions from the issuing fund.
● Which of the following is TRUE if a mutual fund investor chooses to
implement a systematic withdrawal plan from the fund?
A. The dividends and capital gains that are generated from the fund will
be sufficient to make the payments.
B. All payments will end on a specific date.
C. The amount of each payment will remain the same.
, D. The withdrawals result in a reduction of capital.. Answer: D. The
withdrawals result in a reduction of capital.
The only true statement is that the plan results in the reduction of capital,
since shares will need to eventually be redeemed to make payments.
● A husband and wife have combined earnings of greater than $300,000
in each of the last two years. If it's reasonably expected that this level of
income will remain the same, the couple is considered:
A. A qualified investor
B. An accredited investor
C. An institutional investor
D. A qualified institutional buyer (QIB). Answer: B. An accredited
investor
Accredited investors have a net worth of $1 million (excluding their
primary residence) or annual income of $200,000 in each of the last two
years. For married couples to be considered an accredited investor, they
need to have income of at least $300,000. A qualified institutional buyer
(QIB) must be institution with $100 million in assets under management
(AUM), but is NOT a natural person.
● All of the following persons are permitted to be named as a trusted
contact person for a senior investor, EXCEPT:
QUESTIONS WITH SOLUTIONS GRADED A+
● Which of the following choices would NOT be subject to the holding
period restriction under Rule 144?
A. Restricted stock acquired under an investment letter
B. Restricted stock acquired under a stock option plan
C. Control stock acquired under a private placement
D. Control stock acquired through an open-market purchase. Answer: D.
Control stock acquired through an open-market purchase
There is a required holding period of six months for all restricted stock.
Restricted stock is unregistered stock that was acquired as a result of a
private placement. There is no required holding period for control stock.
However, if an affiliate (control person) acquires stock as a result of a
private placement, this stock would be considered restricted stock rather
than control stock and would be subject to the holding period. Control
stock acquired as a result of an open-market purchase is exempt from the
holding period.
● The investments that tend to perform the WORST during periods of
inflation are:
,A. Bonds
B. Mutual Funds
C. ETFs
D. Gold and Silver. Answer: A. Bonds
● If a customer exceeds SIPC limits:
A. The customer will receive cash rather than his securities
B. The customer is a secured creditor
C. The customer doesn't have a claim to the excess amount
D. The customer is a general creditor. Answer: D. The customer is a
general creditor
● When discussing the purchase of a variable annuity with a client, the
RR is not required to disclose:
A. Surrender fees
B. Mortality fees
C. Probate fees
D. Administrative fees. Answer: C. Probate fees
,Probate fees and costs are associated with establishing the validity of a
will, which is not a disclosure item for annuities. However, surrender,
mortality, and administrative fees must be disclosed
● Jamie has inherited 500 shares of an investment company. She calls
her broker to redeem the shares and is informed that the kind of
investment company she owns makes no provision for future purchases
or redemptions. What kind of investment company does she own?
A. An open-end fund
B. A closed-end fund
C. A unit investment trust
D. A face-amount certificate company. Answer: B. A closed-end fund
A closed-end fund makes no provision for future purchases or
redemptions from the issuing fund.
● Which of the following is TRUE if a mutual fund investor chooses to
implement a systematic withdrawal plan from the fund?
A. The dividends and capital gains that are generated from the fund will
be sufficient to make the payments.
B. All payments will end on a specific date.
C. The amount of each payment will remain the same.
, D. The withdrawals result in a reduction of capital.. Answer: D. The
withdrawals result in a reduction of capital.
The only true statement is that the plan results in the reduction of capital,
since shares will need to eventually be redeemed to make payments.
● A husband and wife have combined earnings of greater than $300,000
in each of the last two years. If it's reasonably expected that this level of
income will remain the same, the couple is considered:
A. A qualified investor
B. An accredited investor
C. An institutional investor
D. A qualified institutional buyer (QIB). Answer: B. An accredited
investor
Accredited investors have a net worth of $1 million (excluding their
primary residence) or annual income of $200,000 in each of the last two
years. For married couples to be considered an accredited investor, they
need to have income of at least $300,000. A qualified institutional buyer
(QIB) must be institution with $100 million in assets under management
(AUM), but is NOT a natural person.
● All of the following persons are permitted to be named as a trusted
contact person for a senior investor, EXCEPT:
