FINRA SIE Practice Exams
Last updated on Oct 21,2026- Exam Code: SIE
- Exam Name: Securities Industry Essentials Exam (SIE)
- Certification Provider: FINRA
- Latest update: Oct 21,2026
A Treasury bill is issued under which of the following terms?
- A . At par
- B . At par plus interest
- C . At a discount
- D . At a stated rate of interest
Which of the following statements is true about a corporation’s balance sheet?
- 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.
Which of the following characteristics best describes a benefit of a variable annuity subaccount?
- A . The account is managed by a third-party custodian and is, therefore, subject to lower management fees than those charged by the insurance company.
- B . The account is held at a broker-dealer that is separate from the insurance company, thereby allowing tax-deferred investments in all types of securities products.
- C . The account is held separately from the insurance company’s general account and, therefore, is protected from the claims of general creditors of the insurance company.
- D . The account represents the indebtedness of the insurance company that is subordinated to the claims of general creditors and, therefore, offers investors a higher rate of return.
Which of the following characteristics best describes a benefit of a variable annuity subaccount?
- A . The account is managed by a third-party custodian and is, therefore, subject to lower management fees than those charged by the insurance company.
- B . The account is held at a broker-dealer that is separate from the insurance company, thereby allowing tax-deferred investments in all types of securities products.
- C . The account is held separately from the insurance company’s general account and, therefore, is protected from the claims of general creditors of the insurance company.
- D . The account represents the indebtedness of the insurance company that is subordinated to the claims of general creditors and, therefore, offers investors a higher rate of return.
At a prospecting event, a registered representative (RR) provides cards for attendees to write down their contact information if they want to have a follow-up meeting with her.
Which of the following actions should the RR take in this situation to comply with telemarketing rules?
- A . Obtain the broker-dealer’s approval before making a call
- B . Limit contact with prospects to between 9 a.m. and 9 p.m.
- C . Contact the prospects at will since they provided express written consent
- D . Prior to contacting the prospects, check all of the names on the cards to make sure they are not on the National Do Not Call Registry
When the index level and strike price of a listed index option are the same, the option is:
- A . In the money.
- B . At the money.
- C . Out of the money.
- D . Trading at intrinsic value only.
Corporate bonds unsecured by any pledge of property are called:
- A . Debentures
- B . Trust certificates
- C . Collateral trust bonds
- D . General obligation (GO) bonds
Which of the following strategies is best for mitigating the risk of a concentrated position?
- A . Diversification
- B . Use of leverage
- C . Dollar-cost averaging
- D . Dividend reinvestment
Which of the following transactions is most profitable if executed prior to a significant rise in a company’s stock price?
- A . Buying a put option
- B . Buying a call option
- C . Selling a put option
- D . Selling a call option
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