SIE Practice Questions

A.  

The statement regarding FINRA ' s endorsement is not permissible.

B.  

The statement is permissible if a principal of the BD approves it in writing prior to use.

C.  

The statement is permissible if the statement is approved in writing by FINRA prior to use.

D.  

The statement is permissible if the postcard does not discuss specific investment opportunities.

A.  

It pays a fixed rate of return.

B.  

Its price is fixed at $1 per share.

C.  

Its underlying investments are short term.

D.  

Its yield always exceeds a savings account rate.

A.  

It does not carry an attached legal opinion.

B.  

It carries no exemption from federal or state income taxes.

C.  

It is backed by the full faith and credit of the issuing jurisdiction.

D.  

It is payable solely from the revenues of the facility against which the bonds were issued.

A.  

common stock.

B.  

preferred stock.

C.  

corporate bonds.

D.  

U.S. government bonds.

A.  

The entire amount will be given to the wife.

B.  

The husband’s portion will be given to his estate.

C.  

It will be determined by the transfer-on-death instructions form.

D.  

The broker-dealer will have to wait for instructions from the probate court to determine the portion that will be distributed to the wife.

A.  

permissible if the customer provides written instructions.

B.  

permissible because the customer previously authorized holding mail.

C.  

not permissible because the request is for more than one month.

D.  

not permissible because the customer opted out of electronic statement delivery.

A.  

Shelf registration

B.  

Primary offering

C.  

Standby underwriting

D.  

Preliminary registration

A.  

A proprietary trader who trades in a security after an earnings announcement

B.  

A company insider who sells their stock in the company on a predefined schedule

C.  

A sales trader who violates firm policy by selling securities without receiving approval

D.  

An attorney who trades based on information that he obtains in connection with providing services to a corporation

A.  

A link to the firm ' s website discussing its products and services

B.  

A link to an investment ' s website stating the investment ' s performance over the next five years

C.  

A link to information on a mutual fund that discusses previous performance over the last five years

D.  

A link to a company ' s filing on EDGAR that contains information on a press release about the company

A.  

It must be executed at the next closing price.

B.  

It must be executed at the next day’s opening price.

C.  

It must be accepted as an " as/of " trade for today ' s price.

D.  

It is not permitted to be accepted as it was received after the market close.