Free FINRA SIE Exam Questions

Become FINRA Certified with updated SIE exam questions and correct answers

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Total 166 Questions | Updated On: Mar 26, 2025

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Question 1

The civil penalty for an individual who is convicted of an insider trading violation is permitted to be an amount up to how many times the profit gained or loss avoided?

A : 1 time

B : 3 times

C : 6 times

D : 10 times

Answer: B

Question 2

A registered representative must complete which of the following activities when entering a discretionary trade?

A : Only exercise discretion over market orders

B : Indicate that discretion was exercised on the order ticket to be identified for supervisory review

C : Obtain authorization from the customer before each discretionary order is entered

D : Receive instructions from the customer as to the price at which to buy or sell a security

Answer: B

Question 3

Shares in a private investment in public equity (PIPE) offering are priced:

A : At the current market value per share.

B : Below the current market value per share.

C : Above the current market value per share.

D : At the public offering price (POP) as determined by the underwriters.

Answer: B

Question 4

A customer buys 100 ABC at $50 and at the same time sells an ABC April 50 call at $8. At expiration, ABC must be at what market price for the customer to break even?

A : $42

B : $44

C : $50

D : $58

Answer: A

Question 5

A customer purchased $80,000 of Fund XYZ two years ago. He now wants to buy $50,000 of Fund LMN offered within the same fund family, which offers a $100,000 breakpoint under right of accumulation. Which of the following statements is true?

A : The additional investment qualifies for a $100,000 breakpoint.

B : Each fund requires contributions of $100,000 to qualify for a breakpoint.

C : The customer must sign a new letter of intent to receive the $100,000 breakpoint on the additional purchase.

D : The customer will receive a sales charge discount on his next purchase after the account balance of the fund reaches $100,000.

Answer: A

Page: 1 / 34

Total 166 Questions | Updated On: Mar 26, 2025

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