SIE PRACTICE EXAM QUESTIONS &
ACTUAL ANSWERS PASSED
ALREADY GRADED A+ NEWEST
VERSION
Which corporate voting procedures entitles a shareholder to one vote per share, and
votes must be divided evenly among the candidates being voted on? - Correct Answer
✔✔ Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-counter
market? These trades allow institutional investors to trade blocks of securities directly,
rather than through an exchange, providing liquidity and anonymity to buyers. - Correct
Answer ✔✔ Third market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding
the investors position? - Correct Answer ✔✔ The investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of
the securities industry? - Correct Answer ✔✔ Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment advisor
firms and advisors? - Correct Answer ✔✔ BrokerCheck
The Federal Reserve Board performs what actions? - Correct Answer ✔✔ It sets
monetary policy, but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a - Correct
Answer ✔✔ Rights offering
The difference between a bond's price and the conversion parity price is referred to as -
Correct Answer ✔✔ conversion premium
An individual who meets what criteria must register as an investment adviser? - Correct
Answer ✔✔ The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to
the normally specified rate, as well as an additional dividend based on a specific
predetermined condition is called a - Correct Answer ✔✔ participating preferred stock
, Profit sharing plans have what characteristic? - Correct Answer ✔✔ they can be
invested entirely in company stock
What is true regarding the Central Registration Depository (CRD)? - Correct Answer
✔✔ It was developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a
single, nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed
firms? They operate both manually and electronically to facilitate price discovery during
market opens, closes, and during periods of trading imbalances and instability. - Correct
Answer ✔✔ Designated Market Makers
If real GDP declined the last 3 quarters, how many more consecutive quarters of decline
would be needed to be classified as an economic depression? - Correct Answer ✔✔ 3
quarters
What is a correct reason to purchase a particular investment for a client's portfolio? -
Correct Answer ✔✔ Blue chip common stocks because they provide a hedge against
inflation
An unconditional promise to pay a sum of money to a payee, either at a fixed or
determinable future time, under specific terms is called a - Correct Answer ✔✔
Promissory note
A trade surplus results from - Correct Answer ✔✔ a country exporting more than it
imports
William, age 56, recently retired from Epsilon Inc., and would like to take a distribution
from a retirement plan to pay for medical expenses. What plan would allow William to
take a penalty free withdrawal? - Correct Answer ✔✔ 401(k) from Epsilon Inc
Match the state of the business cycle with the description that follows for questions 19-
22
A. Trough
B. Expansion
C. Contraction
D. Peak
_______ Recession - Correct Answer ✔✔ contraction
_________ Utilization at its lowest level - Correct Answer ✔✔ Trough
_______ Recovery - Correct Answer ✔✔ Expansion
ACTUAL ANSWERS PASSED
ALREADY GRADED A+ NEWEST
VERSION
Which corporate voting procedures entitles a shareholder to one vote per share, and
votes must be divided evenly among the candidates being voted on? - Correct Answer
✔✔ Statutory voting
What market refers to the trading of exchange-listed securities in the over-the-counter
market? These trades allow institutional investors to trade blocks of securities directly,
rather than through an exchange, providing liquidity and anonymity to buyers. - Correct
Answer ✔✔ Third market
An investor sells a naked call on Omikron for a $250 premium. What is true regarding
the investors position? - Correct Answer ✔✔ The investor's potential loss is unlimited
Which act created the SEC and empowered it with broad authority over all aspects of
the securities industry? - Correct Answer ✔✔ Securities Exchange Act of 1934
A free tool provided by FINRA that is intended to help consumers research the
professional backgrounds of brokers and brokerage firms, as well as investment advisor
firms and advisors? - Correct Answer ✔✔ BrokerCheck
The Federal Reserve Board performs what actions? - Correct Answer ✔✔ It sets
monetary policy, but does not set tax policy
An offering of shares to existing stockholders on a pro-rata basis is called a - Correct
Answer ✔✔ Rights offering
The difference between a bond's price and the conversion parity price is referred to as -
Correct Answer ✔✔ conversion premium
An individual who meets what criteria must register as an investment adviser? - Correct
Answer ✔✔ The individual provides advice or analyses concerning securities
The individual is in the business of providing investment advice
The individual provides investment advice for compensation
A type of preferred stock that gives the investor the right to receive dividends equal to
the normally specified rate, as well as an additional dividend based on a specific
predetermined condition is called a - Correct Answer ✔✔ participating preferred stock
, Profit sharing plans have what characteristic? - Correct Answer ✔✔ they can be
invested entirely in company stock
What is true regarding the Central Registration Depository (CRD)? - Correct Answer
✔✔ It was developed by NASAA and the NASD
It consolidated a multiple paper-based state licensing and regulatory process into a
single, nationwide computer system
Its computerized database contains the licensing and disciplinary histories on more than
650,000 securities professionals and 5,200 securities firms
Who is responsible for maintaining fair and orderly markets for an assigned set of listed
firms? They operate both manually and electronically to facilitate price discovery during
market opens, closes, and during periods of trading imbalances and instability. - Correct
Answer ✔✔ Designated Market Makers
If real GDP declined the last 3 quarters, how many more consecutive quarters of decline
would be needed to be classified as an economic depression? - Correct Answer ✔✔ 3
quarters
What is a correct reason to purchase a particular investment for a client's portfolio? -
Correct Answer ✔✔ Blue chip common stocks because they provide a hedge against
inflation
An unconditional promise to pay a sum of money to a payee, either at a fixed or
determinable future time, under specific terms is called a - Correct Answer ✔✔
Promissory note
A trade surplus results from - Correct Answer ✔✔ a country exporting more than it
imports
William, age 56, recently retired from Epsilon Inc., and would like to take a distribution
from a retirement plan to pay for medical expenses. What plan would allow William to
take a penalty free withdrawal? - Correct Answer ✔✔ 401(k) from Epsilon Inc
Match the state of the business cycle with the description that follows for questions 19-
22
A. Trough
B. Expansion
C. Contraction
D. Peak
_______ Recession - Correct Answer ✔✔ contraction
_________ Utilization at its lowest level - Correct Answer ✔✔ Trough
_______ Recovery - Correct Answer ✔✔ Expansion
