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SIE Practice Questions

Securities Industry Essentials Exam (SIE)

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Total Questions : 410

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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 # 31

A common stock undergoes a 1-for-25 reverse stock split. Which of the following statements describes the impact of the issuer ' s market capitalization?

Options:

A.  

It remains the same as it was prior to the split.

B.  

It increases because the stock price increases.

C.  

It increases because there are more shares outstanding.

D.  

It decreases because there are fewer shares outstanding.

Discussion 0
Question # 32

A currency devaluation impacts a country ' s economic activity in which of the following ways?

Options:

A.  

Decreases inflation

B.  

Decreases gross domestic product (GDP)

C.  

Increases imports from merchandise trade countries

D.  

Makes exports cost less in merchandise trade countries

Discussion 0
Question # 33

A customer owns 200 shares of Corporation ABC, which recently announced a 1-for-2 reverse stock split. If the closing price of ABC is $14 on the day before the split, what will this customer’s ABC holdings be immediately after the split?

Options:

A.  

100 shares at $14 per share

B.  

100 shares at $28 per share

C.  

200 shares at $28 per share

D.  

400 shares at $7 per share

Discussion 0
Question # 34

A customer purchases $3,000 of XYZ, which settles today in a margin account. The customer has no other positions or balances. According to initial margin requirements, what is the amount of the required deposit?

Options:

A.  

$1,500

B.  

$2,000

C.  

$2,500

D.  

$3,000

Discussion 0
Question # 35

A customer owns shares in Equity Growth Fund ABC and wants to diversify her holdings by making a new investment in Fixed Income Fund AB

C.  

Which of the following parties has the primary responsibility for ensuring that the additional investment is made at the breakpoint that is appropriate for the customer’s total overall investment in ABC funds?

Options:

A.  

The customer

B.  

The fund manager

C.  

The branch manager

D.  

The registered representative

Discussion 0
Question # 36

Which of the following statements is true about a corporation ' s balance sheet?

Options:

A.  

It is also called a profit and loss statement.

B.  

It summarizes a company ' s revenues and expenses for the firm ' s fiscal year.

C.  

It lists a company ' s assets, liabilities, and net worth on the date the statement was prepared.

D.  

It reports where a corporation ' s cash is being generated and where its cash is being spent for a specific period.

Discussion 0
Question # 37

Which of the following security types may contain convertible features allowing the holders to exchange the securities for other issues of the company?

Options:

A.  

Common stock

B.  

Preferred stock

C.  

Commercial paper

D.  

An exchange-traded fund (ETF)

Discussion 0
Question # 38

A privacy policy opt-out direction provided by a customer is valid:

Options:

A.  

for one year.

B.  

as long as the account has a balance.

C.  

until the account is closed.

D.  

until the customer rescinds direction.

Discussion 0
Question # 39

A customer will be out of the country for the next two months on business and asks his firm to hold his mail until he returns. Which of the following statements is true regarding this request?

Options:

A.  

The firm is prohibited from holding the customer ' s mail under FINRA rules due to the personal information contained.

B.  

The firm must receive written instructions from the customer that include the time period for the requested mail hold.

C.  

The firm is permitted to hold the mail as long as the registered representative (RR) complies with the customer ' s oral instructions.

D.  

At the discretion of the RR, the firm is permitted to hold the customer ' s mail provided it takes reasonable actions to ensure no tampering occurs with this mail.

Discussion 0
Question # 40

The cash value of a variable life insurance policy is affected by which of the following factors?

Options:

A.  

Changes in the beneficiary

B.  

Changes in the death benefit

C.  

Fluctuating market conditions

D.  

Contingent deferred sales charges

Discussion 0
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