FINRA SIE Practice Test Exam Questions and Answers
(Verified Answers) Latest 2023
Upon Expiration, all in-the-money S&P 100 Index call options are settled by
the delivery of which of the following? – Correct Answers ✅Cash
Which of the following statements is true about treasury stock? – Correct
Answers ✅It is issued stock that has been subsequently reacquired by the
corporation
In the event of a stock split, which of the following parties is required to
maintain a record of the shareholders eligible to receive the additional
shares? – Correct Answers ✅Transfer Agent
Which of the following actions is required of a broker-dealer’s anti-money
laundering (AML) program? – Correct Answers ✅Designating an AML
compliance officer
A registered representative (RR) wants to participate in a private securities
transaction. Which of the following actions must the RR take? – Correct
Answers ✅Send written notice to his supervisor outlining the activity and
compensation structure
FINRA SIE Practice Test Exam Questions and Answers
(Verified Answers) Latest 2023
A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and
simultaneously buys 100 shares of ABC stock for $35 per share. The
customer will break even when the stock is selling at what price per share at
expiration? – Correct Answers ✅$38
The call provision of a bond stipulates which of the following factors? –
Correct Answers ✅Call date and call price
When is interest on Treasury notes paid? – Correct Answers ✅Semiannually
The owner of which of the following products is MOST exposed to
inflationary risk? – Correct Answers ✅Treasury bonds (because it’s longterm)
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from which of the following
parties? – Correct Answers ✅A registered principal of the RR’s firm
A company announces a tender offer to its shareholders with the intent to
buy a maximum of 1 million shares of its outstanding stock at $10 per share
FINRA SIE Practice Test Exam Questions and Answers
(Verified Answers) Latest 2023
and sets no minimum number of shares to be purchased. An investor wants
to participate in this offer and tenders his 1,000 share position. At the close
of the offer period, only 900,000 shares have been tendered. How many, if
any, of the investor’s shares will the company purchase? – Correct Answers
✅1,000 (1,000 x 100 = 100,000 shares; 1 million – 900k = 100k)
Broker-dealer ABC seeks to underwrite a municipal securities offering by a
local town in which the mayor is currently seeking re-election. A municipal
finance professional who resides in the town and works for ABC contributed
$200 to the mayor’s re-election campaign 13 months ago. If the employee
wants to support the campaign further without impacting the municipal
securities business of the firm, he is permitted to make an additional
contribution of up to what amount? – Correct Answers ✅$50 ($250 is the
limit PER election)
Which of the following stakeholders has first claim priority in a Chapter 11
proceeding? – Correct Answers ✅Secured debt holders
[Order of liquidation at bankruptcy:
- Unpaid wages
- Taxes (IRS)