SIE Practice Questions Answers SIE (Securities Industry Essentials) exam is administrated by Financial Industry Regulatory Authority (FINRA), test your knowledge with our free multiple choice questions answers.
Now that you’ve learned what you need to know about equity securities (at least as far as the SIE exam goes), it’s time to attack some questions. Read carefully so that you don’t make any careless mistakes.
SIE Practice Questions Answers
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SEI Exam Question Answers
Securities Industry Essentials
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Question 1 of 25
1. Question1 points
A currency transaction report (CTR) is a report that U.S. financial institutions are required to file with which of the following?
Question 2 of 25
2. Question1 points
Investment advisers that have custody of client assets or require prepayment of advisory fees __________ or more in advance, and in excess of __________ for each client, must file an audited balance sheet with the SEC as of the end of the investment adviser’s fiscal year.
Question 3 of 25
3. Question1 points
All but which of the following are among the three categories of firm communications that are defined and regulated by FINRA Rule 2210?
Question 4 of 25
4. Question1 points
Which of the following refers to the right to demand the repayment of monies paid if there has been a bad delivery of a stock or security?
Question 5 of 25
5. Question1 points
Which of the following is an advertisement used by a registered investment company that advises readers to obtain a full prospectus? It is not permitted to include an application to invest, and it must contain specific caveats pursuant to SEC Rule 482.
Question 6 of 25
6. Question1 points
if an investor owns 1,000 shares and three positions on the board of directors are open, the investor has a total of 3,000 votes (1,000 shares × 3 candidates), which the investor can use to vote for any candidate(s) in any way she sees fit.
Cumulative voting doesn’t give an investor more voting power, just more voting flexibility. The only way to get more voting power is to buy more shares.
Under cumulative voting rules, an owner of 1,000 shares of DEF common stock who is voting for 4 members on the board of directors could cast:
Question 7 of 25
7. Question1 points
DEF Corp. has 20,000,000 shares of authorized stock. DEF has issued 15,000,000 shares and has since repurchased 1,500,000 shares. How many shares are outstanding?
Question 8 of 25
8. Question1 points
Bob Billingham owns 1,200 shares of DEF common stock at a current market price of $90 per share. If DEF splits its stock 3-for-1, what would Bob’s position be after the split?
Question 9 of 25
9. Question1 points
Betty Billings owns 3,600 shares of GHI common stock at a current market price of $2 per share. If GHI reverse splits its stock 1-for-5, what would Betty’s position be after the split?
Question 10 of 25
10. Question1 points
ABC stock is trading for $49.50 on the day prior to the ex-dividend date. If ABC previously announced a $0.75 dividend, what will be the next day’s opening price?
Question 11 of 25
11. Question1 points
Terry Trader owns 400 shares of OXX common stock at $33 per share. OXX previously declared a 10 percent stock dividend. Assuming no change in the market price of OXX prior to the dividend, what is Terry’s position after the dividend?
Question 12 of 25
12. Question1 points
An ABC investor owns 8 percent cumulative preferred stock ($100 par). In the first year, ABC paid $6 in dividends. In the second year, it paid $4 in dividends. If a common dividend is declared the following year, how much must the preferred shareholders receive?
Question 13 of 25
13. Question1 points
Which of the following is a note issued in which the government borrows money to finance a project and then repays lenders with revenue generated by the same project?
Question 14 of 25
14. Question1 points
Which of the following is a type of public offering auction in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold?
Question 15 of 25
15. Question1 points
In addition to the federal securities laws, each state has its own set of securities laws, commonly referred to as __________, which are designed to protect investors against fraudulent sales practices and activities.
Question 16 of 25
16. Question1 points
Which of the following passes capital gains, dividends, and interest earned on fund investments directly to shareholders so that it is taxed only at the personal level, and double taxation is avoided?
Question 17 of 25
17. Question1 points
In any single life private annuity transaction, if the seller outlives his or her actuarial life expectancy, the purchaser will have paid __________ for the property. If the seller does not outlive his or her actuarial life expectancy, the __________ will have made a good financial deal.
Question 18 of 25
18. Question1 points
How is the net asset value (NAV) of a mutual fund calculated?
Question 19 of 25
19. Question1 points
The statement of cash flows is separated into all but which of the following categories?
Question 20 of 25
20. Question1 points
Common stock is referred to as __________ because the owner of the stock is also an owner of the corporation and may participate in its capital and income growth
Question 21 of 25
21. Question1 points
Which of the following is considered a hybrid security?
Question 22 of 25
22. Question1 points
Which of the following occurs when the supply of goods and services exceeds their demand?
Question 23 of 25
23. Question1 points
An IRA must be created and funded by __________ of the calendar year following the year in which the contribution applies.
Question 24 of 25
24. Question1 points
Common stockholders have the right to vote for which of the following?
I. Stock splits
II. Stock dividends
III. Board of directors
Question 25 of 25
25. Question1 points
DIMM Corporation has just declared bankruptcy. Remaining assets would be distributed in which way (from first to last)?
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