FINRA SIE PRACTICE TEST 75 QUESTIONS
WITH COMPLETE SOLUTIONS 2026
GRADED A+
⩥Primary Distribution.
Answer: Sale of a new issue of stocks or bonds, as distinguished from a
SECONDARY DISTRIBUTION, which involves previously issued
stock.
⩥Secondary Distribution.
Answer: Public sale of previously issued securities held by large
investors, as distinguished from a NEW ISSUE or PRIMARY
DISTRIBUTION, where the seller is the issuing corporation.
⩥How often must firm send account statements.
Answer: Quarterly
⩥Systematic Risk (Market Risk).
Answer: risk that is inherent in the macro economy and cannot be
eliminated through diversification
⩥Non-systematic risk.
Answer: risk that can be eliminated by diversification
,⩥When is interest on Treasury notes paid?.
Answer: Semiannually
⩥How long is a customers letter of intent on a mutual fund purchase
valid for?.
Answer: 13 months
⩥Which is adversely impacted if the issuer's credit rating is
downgraded?.
Answer: ETN's
⩥Exchange Traded Notes (ETNs).
Answer: are debt instruments in which the issuer promises to pay a
return based on the performance of a specific debt index after deducting
specified fees.
⩥Exchange Traded Fund (ETF).
Answer: Collections of stocks and bonds that are traded on securities
exchanges, but are traded more like individual stocks than mutual funds.
⩥Which debt security issues in one year or less?.
Answer: Money market instruments
, ⩥Money Market Instruments.
Answer: debt obligations of large corporations and governments with an
original maturity of one year or less (treasury bills, federal funds and
repurchase agreements, commercial paper, negotiable certificates of
deposit, banker's acceptances)
⩥US Gov Agency Issues are exempt from.
Answer: Registration under securities act of 1933
⩥529 plan.
Answer: A savings plan operated by a state or educational institution
designed to help families set aside funds for future college costs.
Potential deductions from state taxes
⩥Advantage of index funds.
Answer: Lower management fees due to passive management of the
fund
⩥Bid and Ask.
Answer: A pair of prices, where "bid" is the price at which a trader is
prepared to buy and "ask" is the price at which the trader is prepared to
sell the security (note that "ask" is sometimes referred to as "offer").
WITH COMPLETE SOLUTIONS 2026
GRADED A+
⩥Primary Distribution.
Answer: Sale of a new issue of stocks or bonds, as distinguished from a
SECONDARY DISTRIBUTION, which involves previously issued
stock.
⩥Secondary Distribution.
Answer: Public sale of previously issued securities held by large
investors, as distinguished from a NEW ISSUE or PRIMARY
DISTRIBUTION, where the seller is the issuing corporation.
⩥How often must firm send account statements.
Answer: Quarterly
⩥Systematic Risk (Market Risk).
Answer: risk that is inherent in the macro economy and cannot be
eliminated through diversification
⩥Non-systematic risk.
Answer: risk that can be eliminated by diversification
,⩥When is interest on Treasury notes paid?.
Answer: Semiannually
⩥How long is a customers letter of intent on a mutual fund purchase
valid for?.
Answer: 13 months
⩥Which is adversely impacted if the issuer's credit rating is
downgraded?.
Answer: ETN's
⩥Exchange Traded Notes (ETNs).
Answer: are debt instruments in which the issuer promises to pay a
return based on the performance of a specific debt index after deducting
specified fees.
⩥Exchange Traded Fund (ETF).
Answer: Collections of stocks and bonds that are traded on securities
exchanges, but are traded more like individual stocks than mutual funds.
⩥Which debt security issues in one year or less?.
Answer: Money market instruments
, ⩥Money Market Instruments.
Answer: debt obligations of large corporations and governments with an
original maturity of one year or less (treasury bills, federal funds and
repurchase agreements, commercial paper, negotiable certificates of
deposit, banker's acceptances)
⩥US Gov Agency Issues are exempt from.
Answer: Registration under securities act of 1933
⩥529 plan.
Answer: A savings plan operated by a state or educational institution
designed to help families set aside funds for future college costs.
Potential deductions from state taxes
⩥Advantage of index funds.
Answer: Lower management fees due to passive management of the
fund
⩥Bid and Ask.
Answer: A pair of prices, where "bid" is the price at which a trader is
prepared to buy and "ask" is the price at which the trader is prepared to
sell the security (note that "ask" is sometimes referred to as "offer").
