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
An investor buys 100 shares of a stock at $50.00 per share. The company declares a 10% stock dividend.
What will the investor’s cost basis per share be following the payment of the dividend?
- A . $45.00
- B . $45.45
- C . $50.00
- D . $50.50
Which of the following statements is true regarding the difference in treatment between common stock and preferred stock?
- A . Common stock and preferred stock are treated the same under a bankruptcy proceeding.
- B . Common stock and preferred stock are treated the same when it comes to payment of dividends.
- C . Common stock dividend payment is treated as a higher priority over that of preferred stock.
- D . Common stock is a lower priority compared to preferred stock under a bankruptcy proceeding.
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
An investor owns 100 shares of a company’s stock and is very interested in electing a particular individual to the board of directors of the corporation. There are 20 individuals running to fill 10 board seats.
If the corporation uses the cumulative voting method, what is the maximum number of votes the investor is permitted to cast for this particular director?
- A . 50 votes
- B . 100 votes
- C . 1,000 votes
- D . 2,000 votes
Publicly traded limited partnership interests are typically considered:
- A . Mutual funds
- B . Equity securities
- C . Fixed-income securities
- D . Derivative investments
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?
- A . One year
- B . Two years
- C . Three years
- D . Six years
Company XYZ is a U.S.-based provider of domestic utility services. XYZ’s noncallable bonds pay a coupon rate of 5% and are currently yielding 9%. Market interest rates are currently 5.5%.
An investor who purchases XYZ bonds is most exposed to which of the following risks?
- A . Credit risk
- B . Political risk
- C . Currency risk
- D . Prepayment risk
A summary prospectus for a mutual fund must contain which of the following information?
- A . Projected return
- B . Investment objectives
- C . Fund’s portfolio holdings
- D . Control persons and principal owners of the fund
Which of the following statements is true with regard to SIPC and FDIC?
- A . SIPC coverage is only for securities, and FDIC coverage is only for cash.
- B . SIPC protects brokerage accounts, and FDIC protects bank deposits.
- C . Money market mutual funds are covered by the FDIC and are not covered by SIPC.
- D . Securities held at broker-dealers are covered by the FDIC and are not covered by SIPC.
Pursuant to the Securities Act of 1933, registration is required for which of the following securities?
- A . Private placements
- B . Municipal securities
- C . U.S. government issues
- D . Open-end investment companies