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
Which of the following statements is true regarding 529 savings plans?
- A . 529 contributions are tax deductible in all states.
- B . There are income limitations for contributing to a 529 savings plan.
- C . The account beneficiary has control over the assets in a 529 savings plan.
- D . Assets are transferable to another 529 savings plan tax-free if the new beneficiary is a family member of the current beneficiary.
An individual investor has $300,000 in cash and $400,000 in securities held with a financially troubled SIPC member firm for which liquidation has begun.
The individual investor’s cash is protected for what amount?
- A . $150,000
- B . $250,000
- C . $300,000
- D . $700,000
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?
- A . Credit risk
- B . Political risk
- C . Taxability risk
- D . Purchasing power risk
Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?
- A . Selling real estate
- B . Selling health insurance
- C . Professionally refereeing athletic events
- D . Passively investing in a multifamily house for rental purposes
Which of the following strategies is an investor most likely to employ using options contracts?
- A . Buying put options to set a definitive floor for potential losses
- B . Buying put options when the market shows upward momentum
- C . Selling call options to set a definitive ceiling for potential losses
- D . Buying call options when the market shows downward momentum
Which of the following is the primary risk of using asset allocation models without periodic rebalancing?
- A . Inflation
- B . Marketability
- C . Overweighting
- D . Interest rate risk
Which of the following is the primary risk of using asset allocation models without periodic rebalancing?
- A . Inflation
- B . Marketability
- C . Overweighting
- D . Interest rate risk
Which of the following statements is a characteristic of a government bond fund?
- A . Government bond funds are diversified.
- B . Dividend/interest payments will be the same each month.
- C . If interest rates fall, the net asset value (NAV) of the fund will likely drop as well.
- D . The value of the fund is not guaranteed by the government or any federal agency.
A customer wants to open an account to trade covered calls and puts.
Which of the following communications must be provided to the customer prior to approving the account for trading?
- A . Prospectus
- B . MSRB Investor Brochure
- C . Margin disclosure statement
- D . Options disclosure document (ODD)
Which of the following activities is permitted during the cooling-off period of an initial public offering (IPO)?
- A . Distribute final prospectus
- B . Deliver securities to purchasers
- C . Conduct sales to public investors
- D . Market the new security to potential investors