STC SIE PRACTICE PAPER 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
● Trading on material, non-public information is considered
__________________. Answer: Insider trading
● Identify the acronym: RR Answer: Registered representative
● True or False: The MSRB has no authority or control over municipal
issuers. Answer: True
● What will SIPC cover in a customer's margin account? Answer: Only
the customer's equity (securities clear of any outstanding loan)
● What is the purpose of the FDIC? Answer: To insure bank deposits
and also to examine and supervise financial institutions for safety and
soundness
● Define penny stock. Answer: Non-exchange traded securities that are
priced at less than $5 per share
● What is FINRA? Answer: The Financial Industry Regulatory
Authority; created by the merger of the NASD and NYSE regulatory
authorities
, ● The IC Act of '40 requires a fund with more than _____ shareholders
to register with the SEC. Answer: The IC Act of '40 requires a fund with
more than 100 shareholders to register with the SEC.
● Identify the acronym: WSP Answer: Written Supervisory Procedures
● What is the purpose of the Federal Deposit Insurance Corporation?
Answer: To guarantee the safety of cash deposited in FDIC member
banks against bank failure
● Who enforces MSRB rules? Answer: BD Enforcement: SEC or
FINRA and Bank Dealer Enforcement: FRB, FDIC, or the Comptroller
of the Currency
● What are joint accounts considered by SIPC? Answer: Joint accounts
are considered separate from individual accounts.
● The __________________________________________ is the SRO
for the OTC market. Answer: The Financial Industry Regulatory
Authority (FINRA) is the SRO for the OTC market.
● True or False: SIPC provides coverage for both commodities and
futures accounts. Answer: False
QUESTIONS AND SOLUTIONS GRADED A+
● Trading on material, non-public information is considered
__________________. Answer: Insider trading
● Identify the acronym: RR Answer: Registered representative
● True or False: The MSRB has no authority or control over municipal
issuers. Answer: True
● What will SIPC cover in a customer's margin account? Answer: Only
the customer's equity (securities clear of any outstanding loan)
● What is the purpose of the FDIC? Answer: To insure bank deposits
and also to examine and supervise financial institutions for safety and
soundness
● Define penny stock. Answer: Non-exchange traded securities that are
priced at less than $5 per share
● What is FINRA? Answer: The Financial Industry Regulatory
Authority; created by the merger of the NASD and NYSE regulatory
authorities
, ● The IC Act of '40 requires a fund with more than _____ shareholders
to register with the SEC. Answer: The IC Act of '40 requires a fund with
more than 100 shareholders to register with the SEC.
● Identify the acronym: WSP Answer: Written Supervisory Procedures
● What is the purpose of the Federal Deposit Insurance Corporation?
Answer: To guarantee the safety of cash deposited in FDIC member
banks against bank failure
● Who enforces MSRB rules? Answer: BD Enforcement: SEC or
FINRA and Bank Dealer Enforcement: FRB, FDIC, or the Comptroller
of the Currency
● What are joint accounts considered by SIPC? Answer: Joint accounts
are considered separate from individual accounts.
● The __________________________________________ is the SRO
for the OTC market. Answer: The Financial Industry Regulatory
Authority (FINRA) is the SRO for the OTC market.
● True or False: SIPC provides coverage for both commodities and
futures accounts. Answer: False
