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 products is the most appropriate class of investments for a customer looking for income and capital gains?
- A . A growth stock
- B . A money market account
- C . A blue-chip stock mutual fund
- D . Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS)
The cash value of a variable life insurance policy is affected by which of the following factors?
- A . Changes in the beneficiary
- B . Changes in the death benefit
- C . Fluctuating market conditions
- D . Contingent deferred sales charges
A customer writes a call for XYZ stock with a strike price of $35 and receives a premium of $7. The stock is currently trading at $40.
What is the time value of this option?
- A . $0
- B . $2
- C . $5
- D . $7
Which of the following products is redeemable at net asset value (NAV)?
- A . Corporate stock
- B . Municipal bonds
- C . Options contracts
- D . Open-end mutual funds
Which of the following responses best describes a short sale?
- A . A sale of securities that results in a loss
- B . A sale of securities that the investor does not own
- C . A sale of securities that results in an unsecured debit balance in the investor’s account
- D . A sale of securities that the investor had purchased in his cash account but had not yet paid for
A customer has a stock position that has increased in value since the time he purchased it.
Which of the following terms describes his current situation?
- A . Interest income
- B . Unrealized gain
- C . Operating profit
- D . Out of the money
Rising economic activity is most likely to increase revenues of which of the following sectors?
- A . Utilities
- B . Healthcare
- C . Consumer staples
- D . Consumer discretionary
A registered representative (RR) receives a mutual fund order from a customer at 4:10 p.m. ET.
Which of the following statements is true regarding this order?
- A . It must be executed at the next closing price.
- B . It must be executed at the next day’s opening price.
- C . It must be accepted as an "as/of" trade for today’s price.
- D . It is not permitted to be accepted as it was received after the market close.
The process in which the buying firm must pay for the securities and the selling firm must deliver the securities is known as:
- A . A corporate action
- B . Clearing the trade
- C . The settlement of the transaction
- D . A delivery versus payment (DVP) transaction
Which of the following responses describes a FINRA member?
- A . An associated person of a registered brokerage firm
- B . A natural person who is employed by a broker-dealer (BD)
- C . A registered representative with a national securities exchange
- D . A BD regulated by a national securities association