SIE Exam Practice Questions

SIE Exam Practice Questions
Securities Industry Essentials

Below you will find some free SIE Exam practice questions. Remember, since the exam changed in October of 2018, the SIE Exam is a co-requisite, meaning you must take and pass both and one of the co-requisite exams such as the Series 7 (series 7 top-off exam) or Series 6 (series 6 top-off exam). Anyway, the SIE practice questions below will give you an idea of the types of questions you will see when taking the real exam. At the end of the practice test, you’ll find an answer key. Good luck…

10 SIE Practice Questions

1) All of the following are true about the Letter of Intent EXCEPT:

A. It is valid for 13 months
B. It may be backdated for 90 days
C. An investor may not redeem shares during the time the letter of intent is in effect
D. An investor receives the reduced sales charge as soon as the letter is signed

2) Which of the following investment companies specifies what percentage of asset allocation will be in stocks and bonds for the life of the fund?

A. A structured fund
B. A private equity fund
C. A life cycle fund
D. A blind pool fund

3) A 9% corporate bond is trading at 106 ¾.  Which of the following is true?

A. An investor will receive $90 on the next interest payment
B. The coupon rate is higher than the basis
C. The yield will be higher if the bond is called than it will be if the bond is held to maturity
D. All of the above

4) Which of the following orders becomes a market order for immediate execution as soon as the price of a stock passes or hits a certain price ?

A. Market
B. Stop
C. Limit
D. Stop-limit

5) A syndicate manager has received the following orders for a new issue:

$10,000,000 in group net orders, $15,000,000 in member orders, $10,000,000 in designated orders, and $5,000,000 in pre-sale orders.

If the manager is offering $20,000,000 of new bonds, which of the following groups of orders will be filled at least partially?

I. Pre-sale
II. Designated
III. Member
IV. Syndicate

A. I only
B. I and IV
C. I, II, and IV
D. All of the above

6) Which of the following information would be found in the Notice of Sale?
I. Rating
II. Offering scale
III. NIC or TIC
IV. Good faith deposit

A. I and II
B. III and IV
C. I, II, and III
D. I, II, III and IV

7) If the Fed wants to prevent high inflation, which of the following actions would it most likely take?

A. Lower the discount rate
B. Sell T-bills to banks
C. Lower the reserve requirements
D. Buy T-bills from banks

8) All of the following relatives of an insider would also be insiders EXCEPT:

A. Brother
B. Sister-in-law
C. Grandfather
D. Spouse

9) An MSRB dispute would be settled in which of the following ways?

A. Arbitration
B. Litigation
C. COP
D. None of the above

10) Which of the following investors may accuse an insider for insider trading when the insider was selling stock to avoid losses?

A. Investors who were buying the stock at the same time
B. Investors who were selling the stock at the same time
C. Both A and B
D. Neither A nor B

Answer Key: 1) C 2) A 3) B 4) B 5) C 6) B 7) B 8) C 9) A 10) A

Above is just a sampling of SIE practice questions. When purchasing our SIE Course Textbook, you will not only get the correct answers, but also detailed explanations. All books were created by Steven M. Rice and Rueben Martinez

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