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SIE Practice Exam Questions and Answers

Securities Industry Essentials Exam (SIE)

Last Update 2 days ago
Total Questions : 85

Securities Industry Essentials Exam (SIE) is stable now with all latest exam questions are added 2 days ago. Incorporating SIE practice exam questions into your study plan is more than just a preparation strategy.

SIE exam questions often include scenarios and problem-solving exercises that mirror real-world challenges. Working through SIE dumps allows you to practice pacing yourself, ensuring that you can complete all Securities Industry Essentials Exam (SIE) practice test within the allotted time frame.

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Question # 1

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

Options:

A.  

Cash

B.  

Margin

C.  

An individual retirement account (IRA)

D.  

Delivery versus payment (DVP) / receive versus payment (RVP)

Discussion 0
Question # 2

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?

Options:

A.  

Options

B.  

Warrants

C.  

Common stock

D.  

Preferred stock

Discussion 0
Question # 3

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?

Options:

A.  

At least 50% of total assets

B.  

At least 75% of total assets

C.  

At least 90% of total assets

D.  

100% of assets

Discussion 0
Question # 4

Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?

Options:

A.  

Selling real estate

B.  

Selling health insurance

C.  

Professionally refereeing athletic events

D.  

Passively investing in a multifamily house for rental purposes

Discussion 0
Question # 5

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?

Options:

A.  

The firm is prohibited from holding the customer's mail under FINRA rules due to the personal information contained.

B.  

The firm must receive written instructions from the customer that include the time period for the requested mail hold.

C.  

The firm is permitted to hold the mail as long as the registered representative (RR) complies with the customer's oral instructions.

D.  

At the discretion of the RR, the firm is permitted to hold the customer's mail provided it takes reasonable actions to ensure no tampering occurs with this mail.

Discussion 0
Question # 6

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?

Options:

A.  

$42

B.  

$44

C.  

$50

D.  

$58

Discussion 0
Question # 7

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

Options:

A.  

Volunteer workers

B.  

Small business owners

C.  

Active duty military personnel

D.  

Employees of a nonprofit hospital

Discussion 0
Question # 8

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

Options:

A.  

Equity index

B.  

Preferred stock

C.  

Master limited partnership

D.  

Exchange-traded funds (ETFs)

Discussion 0
Question # 9

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?

Options:

A.  

Obtain the broker-dealer's approval before making a call

B.  

Limit contact with prospects to between 9 a.m. and 9 p.m.

C.  

Contact the prospects at will since they provided express written consent

D.  

Prior to contacting the prospects, check all of the names on the cards to make sure they are not on the National Do Not Call Registry

Discussion 0
Question # 10

Which of the following listed securities carries voting rights?

Options:

A.  

Common stock

B.  

Preferred stock

C.  

Corporate bond

D.  

Convertible bond

Discussion 0
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