FINRA Securities Industry Essentials Exam (SIE) - SIE FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

A selling group member in an initial public offering (IPO) has the primary responsibility for which of the following obligations related to the IPO ' s prospectus?

A. Ensuring that the prospectus is filed with the SEC B. Ensuring that the information in the prospectus is accurate and complete C. Distributing the prospectus to prospective investors D. Preparing the prospectus

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Correct Answer: C Vote an answer

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Question 2

Which of the following actions will best hedge a short put?

A. Selling a put with an earlier expiration B. Buying a call with a higher strike price C. Buying the stock D. Selling short the stock

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Correct Answer: C Vote an answer

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Question 3

If a bond is selling at a premium, which of the following statements is true?

A. Coupon rate is less than yield to maturity (YTM). B. Current value is less than par value. C. Coupon rate is less than current yield. D. YTM is less than coupon rate.

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Correct Answer: D Vote an answer

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Question 4

When making a mutual fund recommendation to a customer, a registered representative must consider all of the following factors except:

A. the investment objective of the fund. B. the age of the customer. C. the fund's independent ranking D. the tax status of the customer.

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Correct Answer: C Vote an answer

Question 5

A company files a registration statement with the SEC to register a new Issue of securities. The company does not plan to sell all the registered shares at this time and instead plans to gradually sell new shares over a three- year period. This registration is called a:

A. shelf registration. B. Rule 144 offering. C. SEC Regulation S offering. D. best efforts offering.

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Correct Answer: A Vote an answer

Question 6

Which of the following types of securities is an equity?

A. Preferred stock B. Commercial paper C. Certificate of deposit (CD) D. Exchange-traded note (ETN)

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Correct Answer: A Vote an answer

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Question 7

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?

A. Front running B. Selling away C. Market manipulation D. Insider trading

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Correct Answer: A Vote an answer

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Question 8

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?

A. Federal Reserve B. FINRA C. SEC D. National Securities Clearing Corporation (NSCC)

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Correct Answer: D Vote an answer

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Question 9

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

A. The location and availability of the MSRB investor brochure B. The firm ' s address C. The firm ' s financial standing D. FINRA violations of all registered representatives

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Correct Answer: A Vote an answer

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