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Securities Industry Essentials Exam (SIE)

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Total Questions : 408

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Our free General Securities Representative practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about SIE. Use this test to pinpoint which areas you need to focus your study on.

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Question # 91

An investor needs to liquidate stock today because he needs the cash. Which of the following order types must the investor place to ensure that the trade will be executed today?

Options:

A.  

Stop order

B.  

Limit order

C.  

Market order

D.  

Stop-limit order

Discussion 0
Question # 92

Which of the following events will cause FINRA to deny an individual’s application for registration?

Options:

A.  

Defaulting on a mortgage

B.  

Being convicted of bribery within the last 10 years

C.  

Being terminated for performance by a previous employer

D.  

Receiving frequent oral complaints from previous customers

Discussion 0
Question # 93

Which of the following statements is true regarding 529 savings plans?

Options:

A.  

529 contributions are tax deductible in all states.

B.  

There are income limitations for contributing to a 529 savings plan.

C.  

The account beneficiary has control over the assets in a 529 savings plan.

D.  

Assets are transferable to another 529 savings plan tax-free if the new beneficiary is a family member of the current beneficiary.

Discussion 0
Question # 94

For purposes of confidentiality, a customer wants to open an account designated by number only. The registered representative must:

Options:

A.  

Not open the account because it is a violation of SEC rules.

B.  

Not open the account because it is a violation of the USA PATRIOT Act.

C.  

Obtain the customer’s most recent tax returns.

D.  

Obtain a signed statement from the customer accepting ownership of the account.

Discussion 0
Question # 95

Which of the following transactions gives a U.S. citizen the most efficient means to invest in the stock of an overseas corporation that trades only on a foreign exchange?

Options:

A.  

Purchase an ETF on the foreign exchange

B.  

Purchase an option on the stock on a domestic exchange

C.  

Purchase a U.S.-based mutual fund that invests in foreign stocks

D.  

Purchase an American Depositary Receipt (ADR) on a domestic exchange

Discussion 0
Question # 96

Which of the following securities entitles the holder to exercise control of the company?

Options:

A.  

Common stock

B.  

Preferred stock

C.  

Corporate bond

D.  

Convertible bond

Discussion 0
Question # 97

The prohibited practice of excessively trading in a discretionary account in order to generate commissions is known as:

Options:

A.  

kiting.

B.  

churning.

C.  

freeriding.

D.  

front running.

Discussion 0
Question # 98

After a customer purchases bonds at a yield of 5.00%, the current yield at market price increases to 5.25%. Which of the following statements is true regarding the value of the bonds?

Options:

A.  

The value of the bonds has increased.

B.  

The value of the bonds has decreased.

C.  

The face value of the bonds has decreased.

D.  

There is no change in the value of the bonds.

Discussion 0
Question # 99

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

Options:

A.  

Securitization

B.  

Hypothecation

C.  

Loan processing

D.  

Claim processing

Discussion 0
Question # 100

Which of the following statements is true regarding the ownership of investment company shares held as tenants in common?

Options:

A.  

All tenants must sign redemption requests.

B.  

Any income is distributed evenly among the tenants.

C.  

Each tenant has a fractional interest in the investment.

D.  

Upon the death of a tenant, all shares in the account are taxable in the estate of the deceased.

Discussion 0
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