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Securities Industry Essentials Exam (SIE)

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Total Questions : 408

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Question # 101

A bond with a par value of $1,000 that is backed by the taxing power of a local government is known as:

Options:

A.  

A revenue bond

B.  

A Treasury bond

C.  

A corporate bond

D.  

A general obligation (GO) bond

Discussion 0
Question # 102

Which of the following statements regarding FINRA arbitration is true?

Options:

A.  

FINRA ultimately decides the arbitration award.

B.  

Documents submitted for arbitration are a matter of public record.

C.  

A FINRA arbitration award is a recommendation and is not final or binding.

D.  

Going through FINRA arbitration precludes a claimant from pursuing the same claim in court.

Discussion 0
Question # 103

Pursuant to FINRA rules, which of the following content is inappropriate to link to from a business-related social media site?

Options:

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

Discussion 0
Question # 104

A registered representative has identified a risky investment he feels is suitable for one of his customers. He has discussed the investment with the customer, and the customer agreed to purchase the security. Given the risk factors, the representative’s firm requires the customer’s signature on a form that reflects the customer understands the investment. The representative signs the form on behalf of the customer using a digital signature platform. The representative authenticates the signature using information that the customer had provided on the new account form when the account was opened two years ago. Which of the following statements best describes the permissibility of the representative’s action?

Options:

A.  

The representative’s actions are permissible since the form is for internal use only by the representative’s firm.

B.  

The representative’s actions are permissible since the customer provided the information necessary to authenticate the digital signature.

C.  

The representative’s actions are impermissible since the representative is prohibited from signing on the customer’s behalf.

D.  

The representative’s actions are impermissible since the information the representative used to authenticate the signature was two years old.

Discussion 0
Question # 105

A husband and wife are interested in purchasing unregistered securities in an SEC Regulation D offering for their joint account. In order to be considered accredited, they must have had a combined annual income for each of the past two years and current expectations for this year of at least what amount?

Options:

A.  

$200,000

B.  

$300,000

C.  

$400,000

D.  

$500,000

Discussion 0
Question # 106

At least how often Is a firm required to provide a customer with a statement In writing as to the availability of an Investor brochure posted on the MSRB website?

(AC?)

Options:

A.  

Monthly

B.  

Quarterly

C.  

Annually

D.  

Once every three years

Discussion 0
Question # 107

An investor purchases 100 shares of a no-load mutual fund at $20 per share. Three months later, the investor receives a $1 per share dividend that is reinvested at $25 per share. What is the investor ' s cost basis for the mutual fund shares after the reinvestment?

Options:

A.  

$2,000

B.  

$2,100

C.  

$2,250

D.  

$2,500

Discussion 0
Question # 108

Which of the following investments is least likely to provide an investor with funds within one business day of liquidation?

Options:

A.  

A hedge fund

B.  

Municipal bonds

C.  

A money market fund

D.  

An equity mutual fund

Discussion 0
Question # 109

Under which of the following circumstances is a member firm required to report a customer interaction as a complaint?

Options:

A.  

The customer calls the registered representative to express concern over recent trading activity in the account.

B.  

The customer emails the registered representative to inform him that the account profile information is incorrect.

C.  

The customer emails the registered representative stating that the customer was unable to place an order because the customer could not reach the representative and lost the opportunity to sell at the high of the week.

D.  

The customer’s son communicates with the registered representative’s firm via social media that his father did not understand the options-writing activity on his long-held, low-basis stock positions.

Discussion 0
Question # 110

An investment company product that is actively managed and continuously offered is a description of which of the following products?

Options:

A.  

Open-end fund

B.  

Closed-end fund

C.  

Variable annuity

D.  

Unit investment trust (UIT)

Discussion 0
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