Use SIE Dumps to Obtain FINRA Certification

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March 2, 2025

If you're serious about obtaining the General Securities Representative certification, practicing with FINRA SIE dumps questions is a must. By doing so, you'll become familiar with the exam format, identify knowledge gaps, develop time management skills, boost your confidence, and increase your chances of success. So, start practicing SIE exam dumps today and give yourself the best chance of passing the SIE exam! Test free Securities Industry Essentials Exam (SIE) SIE exam dumps below.

Page 1 of 5

1. Which of the following security types is frequently offered to the public as part of a package or unit that also includes a fixed income obligation?

Options

Warrants

Common stock

Preferred stock

2. Which of the following types of securities is an equity?

Preferred stock

Commercial paper

Certificate of deposit (CD)

Exchange-traded note (ETN)

3. A registered representative who is terminated from a broker-dealer must notify FINRA of a residential address change for what period of time after termination?

One year

Two years

Three years

Six years

4. Which of the following rates is the interest rate at which banks borrow and lend to each other on an overnight basis?

Prime rate

Discount rate

Federal funds rate

LIBOR

5. Which of the following statements best describes an American Depositary Receipt (ADR)?

ADRs trade like

issues and are quoted in

dollars.

ADRs trade like

issues and are quoted in foreign currency.

ADRs represent shares of a

security held in foreign commercial banks.

ADRs represent shares of a foreign security held in foreign commercial banks.

6. Which of the following statements best describes a characteristic of 529 savings plan accounts?

There are no contribution limits to the account.

The number of contributors to the account is limited.

Using funds for undergraduate or graduate studies is permissible.

Earnings are taxed to the donor at the time of a qualified withdrawal.

7. An investor who lives on a fixed income and is concerned about inflation is most exposed to which of the following risks?

Market risk

Economic risk

Interest rate risk

Purchasing power risk

8. Which of the following statements describes a characteristic of exchange-traded funds (ETFs)?

ETFs are offered with front-end or back-end loads.

ETFs are not permitted to be purchased on margin.

ETFs are purchased and sold daily at net asset value (NAV).

ETF expense ratios are generally lower than those of mutual funds.

9. An investor is bullish on a particular stock for the long run, but he would prefer a better price than the stock's current quote.

Which of the following trades should the investor enter for this stock?

Limit order to sell

Limit order to buy

Market order to sell

Market order to buy

10. Which of the following terms describes failure to honor a firm quote?

Freeriding

Backing away

Interpositioning

Market manipulation

Page 2 of 5

11. Which of the following transactions is most profitable if executed prior to a significant rise in a company's stock price?

Buying a put option

Buying a call option

Selling a put option

Selling a call option

12. Under which of the following circumstances, if any, is a registered representative (RR) permitted to share in the profits and losses of security interests that the RR has purchased jointly with a customer?

Only when the customer is an accredited investor

Only if the RR’s firm is also a participant in the sharing arrangement

When the profits and losses are proportionate to the amount contributed by the RR

Under no circumstances

13. A Treasury bill is issued under which of the following terms?

At par

At par plus interest

At a discount

At a stated rate of interest

14. If a company with a single outstanding bond issue chooses to extinguish this debt through refunding, which of the following actions will occur?

The company will issue stock to replace the bonds.

The company will retire one debt with the proceeds from another issue.

The company will buy back the bonds, at a discount, from the bondholders.

The company will establish a sinking fund for use in making regular open-market purchases of the bonds.

15. 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?

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

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

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

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.

16. Which of the following responses best characterizes a money market mutual fund?

It pays a fixed rate of return.

Its price is fixed at $1 per share.

Its underlying investments are short term.

Its yield always exceeds a savings account rate.

17. If an investor is bullish on ABC, which of the following actions will he most likely take?

Buy ABC puts

Buy ABC stock

Sell ABC calls

Sell ABC stock short

18. Which of the following statements is true with regard to SIPC and FDIC?

SIPC coverage is only for securities, and FDIC coverage is only for cash.

SIPC protects brokerage accounts, and FDIC protects bank deposits.

Money market mutual funds are covered by the FDIC and are not covered by SIP

Securities held at broker-dealers are covered by the FDIC and are not covered by SIP

19. Which of the following listed securities carries voting rights?

Common stock

Preferred stock

Corporate bond

Convertible bond

20. Which of the following is not a pass-through entity for tax purposes?

A C corporation

An S corporation

A limited liability company (LLC)

A real estate investment trust (REIT)

Page 3 of 5

21. How does an individual acquire restricted stock?

By participating in an SEC Regulation D offering

By participating in an initial public offering (IPO)

By exercising publicly traded warrants

By exercising an option for exchange-traded calls

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

529 contributions are tax deductible in all states.

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

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

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

23. For a customer thinking about purchasing a high-income bond mutual fund, which of the following is considered the primary risk of the underlying securities in the portfolio?

Credit risk

Political risk

Taxability risk

Purchasing power risk

24. Which of the following responses accurately describes a secondary market transaction?

Buying open-end mutual fund shares

Buying securities directly from the issuing company

Buying securities on a registered securities exchange

Buying securities in a private placement from a broker-dealer

25. A customer has a stock position that has increased in value since the time he purchased it.

Which of the following terms describes his current situation?

Interest income

Unrealized gain

Operating profit

Out of the money

26. A city has appointed Broker-dealer XYZ to act as lead underwriter for its upcoming issuance of municipal bonds. This is an example of which of the following types of offering?

A follow-on offering

A negotiated offering

A competitive offering

A best-efforts offering

27. An investor is bullish on the technology sector and heavily invests in microchip companies. Impactful regulatory changes are announced that will negatively affect microchip manufacturing.

In order to mitigate the risk to his portfolio, the investor should:

Purchase holdings uncorrelated to the technology sector.

Purchase shares of other microchip companies in the technology sector.

Sell holdings that are unaffected by the regulatory changes.

Buy more shares of the microchip companies already in his portfolio.

28. Under SEC Regulation D, which of the following parties is considered an accredited investor?

A person whose joint income with their spouse exceeds $200,000 in each of the two most recent years and who has a reasonable expectation of reaching the same income level in the current year.

A person whose net worth, excluding the net equity in their primary residence, exceeds $500,000 at the time of purchase.

A person whose net worth, excluding the net equity in their primary residence, exceeds $1 million at the time of purchase.

A charitable organization, partnership, or corporation whose assets exceed $2.5 million.

29. Which of the following responses describes a common feature of a hedge fund?

Low liquidity for investors

Low minimum investment requirement

Primarily focused on fixed income investments

Transparent as to the underlying investments and strategies

30. Which of the following entities settles broker-to-broker equity, listed corporate and municipal bond, and unit investment trust (UIT) transactions in the U.S. equities markets?

SEC

FINRA

Federal Reserve

National Securities Clearing Corporation (NSCC)

Page 4 of 5

31. A customer writes a call for XYZ stock with a strike price of $35 and receives a premium of $7. The stock is currently trading at $40.

What is the time value of this option?

32. A customer receives a confirmation that discloses the firm has acted in a principal capacity.

Which of the following statements is the best explanation for this disclosure?

The firm is selling to the customer from its inventory.

The firm is acting as an intermediary between the customer and an unrelated firm.

The firm is acting as an intermediary between the customer and another customer.

The firm matched the customer's purchase with a sell order listed on an electronic communication network (ECN).

33. A summary prospectus for a mutual fund must contain which of the following information?

Projected return

Investment objectives

Fund's portfolio holdings

Control persons and principal owners of the fund

34. The Options Clearing Corporation (OCC) is a registered clearing agency for which of the following products?

Listed stocks

Over-the-counter bonds

Exchange-traded funds (ETFs)

Long-term Equity Anticipation Securities (LEAPS)

35. An investor sells shares of a closed-end fund at the market.

Which of the following responses best describes the net proceeds to be received?

Net asset value (NAV)

NAV less any redemption fee

Bid price less any commission

Public offering price (POP) less any redemption fee

36. Which of the following rates is subject to the most frequent changes?

Prime

Call loan

Discount

Federal funds

37. Class A and Class C shares of a mutual fund differ in which of the following ways?

The expense ratio

The net asset value (NAV)

The underlying investments

When the customer is permitted to purchase

38. Under SEC Regulation A, which of the following market participants, if deemed to be a bad actor, will disqualify the offering from reliance on this registration exemption?

Custodian

Underwriter

Transfer agent

Clearing corporation

39. The provision that allows a bond issuer to purchase bonds from customers prior to the maturity date on the bond is known as a:

Put

Call

Conversion

Defeasement

40. The primary market is regulated by the SEC under which of the following acts?

The Securities Act of 1933

The Securities Exchange Act of 1934

The Investment Advisers Act of 1940

The Investment Company Act of 1940

Page 5 of 5

41. Which of the following is considered nonpublic information?

Customer's name

Customer's address

Customer's net worth

Customer's telephone number

42. A retail investor owns shares of Mutual Fund ABC that paid a $0.25 dividend on September 1 and closed at $10.00.

What is the opening price once this fund trades on the ex-dividend date?

$9.25

$9.75

$10.00

$10.25

43. Which of the following activities engaged in by a registered person is considered a private securities transaction?

Soliciting donations to a charity

Helping a friend raise money for a startup company they founded

Working for an insurance company selling term life insurance policies

Investing personal money in shares of a listed security in a brokerage account

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

A misdemeanor speeding ticket

A felony conviction for drunk driving

A bench warrant for missing a court date

A gross-misdemeanor domestic assault conviction

45. Which of the following types of accounts permits an investor to borrow money from a broker-dealer to help pay for a trade?

Cash

Margin

An individual retirement account (IRA)

Delivery versus payment (DVP) / receive versus payment (RVP)

46. On settlement date, a customer is unable to pay for a purchase in his cash account. His position is liquidated.

Which of the following statements is true according to Federal Reserve Regulation T?

Only closing transactions are permitted.

The customer is barred from trading for 30 days.

The customer's account is frozen for 90 days.

All related accounts are frozen for 90 days.

47. A customer purchases 100 shares of stock on Thursday, August 2. This transaction must settle regular way no later than:

Friday, August 3

Monday, August 6

Tuesday, August 7

Wednesday, August 8

48. A broker-dealer (BD) creates a marketing postcard that includes a statement regarding FINRA's endorsement of the BD.

Which of the following responses is true?

The statement regarding FINRA's endorsement is not permissible.

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

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

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

49. A rating agency downgrades a corporation's credit rating.

Which of the following effects is this action most likely to have on the yield and price of the corporation's outstanding bonds?

Yield will fall; price will fall.

Yield will fall; price will rise.

Yield will rise; price will fall.

Yield will rise; price will rise.

50. An investor wants to purchase additional mutual fund shares with income distributed by the fund.

Which of the following fund options permits this?

Asset reallocation

Dollar cost averaging

Dividend reinvestment

Capital gains reinvestment

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