Check Real FINRA SIE Exam Question for Free (2025) [Q26-Q45]

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Check Real FINRA SIE Exam Question for Free (2025)

Get Ready to Boost your Prepare for your SIE Exam with 87 Questions

QUESTION 26
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?

$42

$44

$50

$58

QUESTION 27
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?

A 529 savings plan account established for his grandchild

Mutual fund accounts held directly with the fund company

Variable contracts registered under the Investment Company Act

An investment advisory account in which securities transactions are effected

QUESTION 28
When exercised, an option written on which of the following items must be settled in cash?

Equity index

Preferred stock

Master limited partnership

Exchange-traded funds (ETFs)

QUESTION 29
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

Warrants

Common stock

Preferred stock

QUESTION 30
A city has appointed Broker-dealer XYZ to act as lead underwriter for its upcoming issuance of municipal bonds. This is an example of which of the following types of offering?

A follow-on offering

A negotiated offering

A competitive offering

A best-efforts offering

QUESTION 31
The financial risk that a given security is not readily tradable in the market without impacting the market price is known as:

Credit risk

Market risk

Liquidity risk

Prepayment risk

QUESTION 32
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?

SEC

MSRB

FINRA

No disclosure required as the amount is below the reporting threshold

QUESTION 33
Which of the following statements best describes the permissibility of a borrowing arrangement between a registered representative (RR) and a customer who is also the RR’s grandfather?

It is permissible subject to FINRA approval.

It is permissible if the grandfather agrees in writing.

It is permissible if the loan was made on commercially reasonable terms.

It is permissible provided that the loan was made in accordance with the firm’s policies.

QUESTION 34
Which of the following listed securities carries voting rights?

Common stock

Preferred stock

Corporate bond

Convertible bond

QUESTION 35
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?

The RR should notify their supervisor about the customer’s dissatisfaction.

The RR is permitted to reimburse the customer for the loss to resolve the customer’s complaint.

The RR should alert their compliance department to update their Form U4 with the complaint details.

The RR should call FINRA’s Securities Helpline for Seniors before the customer does and explain their side of the story.

QUESTION 36
Which of the following statements is true about a corporation’s balance sheet?

It is also called a profit and loss statement.

It summarizes a company’s revenues and expenses for the firm’s fiscal year.

It lists a company’s assets, liabilities, and net worth on the date the statement was prepared.

It reports where a corporation’s cash is being generated and where its cash is being spent for a specific period.

QUESTION 37
Which of the following responses best describes a short sale?

A sale of securities that results in a loss

A sale of securities that the investor does not own

A sale of securities that results in an unsecured debit balance in the investor’s account

A sale of securities that the investor had purchased in his cash account but had not yet paid for

QUESTION 38
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?

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

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

Contact the prospects at will since they provided express written consent

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

QUESTION 39
Which of the following statements is true of the writer of a listed equity call option?

They have the right to sell stock at a fixed strike price.

They have the right to buy stock at a fixed strike price.

They have the obligation to sell stock at a fixed strike price.

They have the obligation to buy stock at a fixed strike price.

QUESTION 40
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?

Under no circumstances

When the value of all gifts during a period of one year does not exceed $100

When no single gift exceeds $100 and there is no limit on the number of gifts

When no single gift exceeds $100 in value and the maximum value of all gifts per year equals $250

QUESTION 41
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?

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

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

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

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.

QUESTION 42
Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?

Selling real estate

Selling health insurance

Professionally refereeing athletic events

Passively investing in a multifamily house for rental purposes

QUESTION 43
Which of the following responses describes a warrant?

An interest-paying security

Redemption rights for a debt instrument

The right to purchase a specified amount of shares

A fixed-income security issued by a state or municipality

QUESTION 44
The formation of an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans is known as:

Securitization

Hypothecation

Loan processing

Claim processing

QUESTION 45
A registered representative (RR) intends to enter into an arrangement for compensation with an unaffiliated entity to participate in the sale of promissory notes to the general public. Which of the following statements is true?

This is a permissible arrangement, and the RR is only required to notify his firm.

The RR must receive written approval from his firm prior to entering into this arrangement.

The RR is required to notify his firm regarding this arrangement if compensation received is directly related to transactions.

The RR is not required to provide prior notice to his firm as promissory notes are not considered securities.