FINRA SIE Dumps (V8.02) – Try the Best Study Materials 2025 to Prepare for Your Securities Industry Essentials Exam (SIE) Today

1. Which of the following terms describes an offer to purchase some or all shareholders' shares in a corporation, usually at a premium to the market price?

2. Which of the following statements best describes a characteristic of 529 savings plan accounts?

3. Which of the following statements is true regarding the ownership of investment company shares held as tenants in common?

4. A broker-dealer (BD) creates a marketing postcard that includes a statement regarding FINRA's endorsement of the BD.

Which of the following responses is true?

5. According to FINRA rules, under which of the following circumstances, if any, is a member firm permitted to send gifts to a registered representative of another member firm?

6. The cash value of a variable life insurance policy is affected by which of the following factors?

7. An investor wants to purchase additional mutual fund shares with income distributed by the fund.

Which of the following fund options permits this?

8. An investor generally purchases an open-end mutual fund from which of the following parties?

9. Shares in a private investment in public equity (PIPE) offering are priced:

10. Rising economic activity is most likely to increase revenues of which of the following sectors?

11. The provision that allows a bond issuer to purchase bonds from customers prior to the maturity date on the bond is known as a:

12. Which of the following types of accounts permits an investor to borrow money from a broker-dealer to help pay for a trade?

13. A rating agency downgrades a corporation's credit rating.

Which of the following effects is this action most likely to have on the yield and price of the corporation's outstanding bonds?

14. Which of the following responses best describes a short sale?

15. A registered representative who is terminated from a broker-dealer must notify FINRA of a residential address change for what period of time after termination?

16. A registered representative (RR) owns 500 shares of a thinly traded security. A customer of the firm calls the RR to place a sell order for 10,000 shares of the same security. The RR sells his shares before entering the customer's order to sell.

Which of the following activities has the RR just engaged in?

17. Under SEC Regulation D, which of the following parties is considered an accredited investor?

18. Which of the following is the primary risk of using asset allocation models without periodic rebalancing?

19. An associated person at a member firm receives a complaint from a customer involving allegations of forgery. Once the complaint is received, which of the following actions is required?

20. The financial risk that a given security is not readily tradable in the market without impacting the market price is known as:

21. Before an affiliate of an issuer is permitted to sell 10,000 shares of restricted securities, which of the following conditions must be met?

22. Which of the following strategies is best for mitigating the risk of a concentrated position?

23. Which of the following rates is the interest rate at which banks borrow and lend to each other on an overnight basis?

24. A real estate investment trust (REIT) is required to invest what percentage of total assets in real-estate-related assets to maintain favorable tax treatment?

25. A bond with a par value of $1,000 that is backed by the taxing power of a local government is known as:

26. A hypothecation agreement gives the broker-dealer the right to engage in which of the following activities?

27. When is it permissible to exercise European-style options contracts?

28. At a prospecting event, a registered representative (RR) provides cards for attendees to write down their contact information if they want to have a follow-up meeting with her.

Which of the following actions should the RR take in this situation to comply with telemarketing rules?

29. Which of the following disclosures is a municipal securities dealer required to provide its customers once every calendar year?

30. Which of the following risks are associated with Treasury securities?

31. Which of the following listed securities carries voting rights?

32. Which of the following statements is true of the comparison between penny stocks and blue-chip stocks?

33. Assuming yields are held constant, which of the following statements describes what will occur as a discount bond reaches maturity?

34. Offering 403(b) tax-sheltered annuity accounts to which of the following groups is permissible?

35. Which of the following statements is true about a corporation's balance sheet?

36. The process in which the buying firm must pay for the securities and the selling firm must deliver the securities is known as:

37. Which of the following statements is true regarding the SEC's characterization of a registration statement that has just been made effective?

38. Which of the following is a reportable obligation with respect to an individual's Form U4?

39. A municipal securities dealer makes a political contribution of $990 to a local mayoral candidate. At the end of the quarter, to whom, if anyone, must the dealer report the contribution?

40. Which of the following responses describes a warrant?

41. SEC regulations permit a company to issue securities exempted from registration requirements of the Securities Act of 1933 under which of the following conditions?

42. A customer wants to establish an account for the benefit of his grandchildren. He states to his registered representative that he wants to be able to control the distribution of the assets and direct how the account will be invested.

Which of the following account types is most appropriate?

43. An investor sells shares of a closed-end fund at the market.

Which of the following responses best describes the net proceeds to be received?

44. Which of the following statements best describes an American Depositary Receipt (ADR)?

45. A registered representative wants to open an account for himself at a different financial institution.

Under FINRA rules, which of the following accounts requires prior written consent from his employing broker-dealer?

46. A customer purchases 100 shares of stock on Thursday, August 2. This transaction must settle regular way no later than:

47. Which of the following terms describes failure to honor a firm quote?

48. When exercised, an option written on which of the following items must be settled in cash?

49. Which of the following statements is a characteristic of a government bond fund?

50. A customer buys 100 ABC at $50 and at the same time sells an ABC April 50 call at $8. At expiration, ABC must be at what market price for the customer to break even?

51. Which of the following security types is frequently offered to the public as part of a package or unit that also includes a fixed income obligation?

52. A customer is unhappy about a $5,000 loss in a stock that the registered representative (RR) recommended and threatens to call FINRA's Securities Helpline for Seniors about the matter.

What is the most appropriate next step for the RR to take?

53. An investor wants to purchase mutual fund shares, but she is concerned about the tax efficiency of the fund.

Which of the following disclosures required under industry regulations will help the investor make an informed decision?

54. A summary prospectus for a mutual fund must contain which of the following information?

55. A customer owns 100 shares of ABC with a current market value of $5.00 per share. The company undergoes a 1-for-2 reverse split of the stock.

Which of the following statements is true of the

customer's holdings and the price of the stock?

56. When is a newly registered person subject to the Continuing Education Regulatory Element requirement?

57. Which of the following entities settles broker-to-broker equity, listed corporate and municipal bond, and unit investment trust (UIT) transactions in the U.S. equities markets?

58. Publicly traded limited partnership interests are typically considered:

59. A confirmation indicates a 100-share purchase of Company ABC at $11.

According to SEC rules, which of the following information is required to be stated on the confirmation?

60. A customer will be out of the country for the next two months on business and asks his firm to hold his mail until he returns.

Which of the following statements is true regarding this request?