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Securities Industry Essentials Exam (SIE)

Last Update 1 day ago
Total Questions : 410

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Question # 101

Which of the following strategies is an investor most likely to employ using options contracts?

Options:

A.  

Buying put options to set a definitive floor for potential losses

B.  

Buying put options when the market shows upward momentum

C.  

Selling call options to set a definitive ceiling for potential losses

D.  

Buying call options when the market shows downward momentum

Discussion 0
Question # 102

SEC regulations permit a company to issue securities exempted from registration requirements of the Securities Act of 1933 under which of the following conditions?

Options:

A.  

Offerings sold inside of the U.S. to non-U.S. persons

B.  

Offerings sold with no more than 40 accredited investors

C.  

Offerings sold with an aggregate price exceeding $5 million

D.  

Offerings with no more than 35 non-accredited investors and an unlimited number of accredited investors

Discussion 0
Question # 103

Which of the following scenarios may cause a firm to consider placing a registered representative on heightened supervision?

Options:

A.  

A felony arrest but no charge

B.  

A recent history of customer complaints

C.  

A recently obtained large home equity line of credit

D.  

Placement of trades in a discretionary account without first consulting the customer

Discussion 0
Question # 104

Which of the following is a reportable obligation with respect to an individual ' s Form U4?

Options:

A.  

A speeding ticket

B.  

A change of residential address

C.  

A change of business telephone number

D.  

A gambling-related misdemeanor charge

Discussion 0
Question # 105

Which of the following events requires reporting on a Form U4?

Options:

A.  

A misdemeanor speeding ticket

B.  

A felony conviction for drunk driving

C.  

A bench warrant for missing a court date

D.  

A gross-misdemeanor domestic assault conviction

Discussion 0
Question # 106

A customer purchases 100 shares of stock. The customer fears a decline in the share price and would like to protect his investment and minimize loss. Which of the following strategies should the customer employ to lock in his profit?

Options:

A.  

Sell a put

B.  

Sell a call

C.  

Purchase a put

D.  

Purchase a call

Discussion 0
Question # 107

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?

Options:

A.  

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

B.  

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

C.  

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

D.  

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

Discussion 0
Question # 108

Which of the following listed securities carries voting rights?

Options:

A.  

Common stock

B.  

Preferred stock

C.  

Corporate bond

D.  

Convertible bond

Discussion 0
Question # 109

Which of the following statements is true regarding a member firm’s business continuity plan?

Options:

A.  

Each member firm must provide its business continuity plan to FINRA annually.

B.  

Each member firm must provide its business continuity plan to all customers at least annually.

C.  

Each member firm must have a website and post its business continuity plan to that website.

D.  

Each member firm must disclose to its customers at the time of account opening how its business continuity plan addresses the possibility of a significant business disruption.

Discussion 0
Question # 110

A registered representative (RR) owns 500 shares of a thinly traded security. A customer of the firm calls the RR to place a sell order for 10,000 shares of the same security. The RR sells his shares before entering the customer ' s order to sell. Which of the following activities has the RR just engaged in?

Options:

A.  

Selling away

B.  

Front running

C.  

Insider trading

D.  

Market manipulation

Discussion 0
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