FINRA SIE - Securities Industry Essentials Exam
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Total 85 questions
Question #1 (Topic: Exam A)
Which of the following scenarios is an example of illegal insider trading?
A. A friend of an employee trades the corporation's securities after information is made public.
B. An employee trades the corporation's securities after learning of significant, confidential corporate developments.
C. A government employee trades the corporation's securities based on non-confidential information that he learned because of his employment with the government.
D. A vendor employee trades the corporation's securities based on confidential information that she obtained in connection with providing services to the corporation after the news was made public.
Answer: B
Question #2 (Topic: Exam A)
Which of the following statements describes a characteristic of Treasury securities?
A. They are FDIC-insured.
B. They are not traded in the secondary market.
C. They are typically issued to fund specific government initiatives.
D. They are backed by the full faith and credit of the U.S. government.
Answer: D
Question #3 (Topic: Exam A)
A privately held company plans to issue 1 million shares of stock. An underwriting syndicate has agreed to purchase all of the stock, and the syndicate members will, in turn, sell the stock to their customers. After the offering, the stock will trade on an exchange. Which of the following terms best describes the type of offering in which this company is engaging?
A. Shelf offering
B. Private offering
C. Follow-on offering
D. Initial public offering (IPO)
Answer: D
Question #4 (Topic: Exam A)
Which of the following responses is characteristic of a Coverdell education savings account (ESA)?
A. There are no annual contribution limits.
B. Contributions into a Coverdell ESA are tax deductible.
C. Unused funds are permitted to be transferred to an eligible relative of any age.
D. The designated beneficiary must be under the age of 18 or be a special needs beneficiary when the account is established.
Answer: D
Question #5 (Topic: Exam A)
An individual passes the Securities Industry Essentials (SIE) Exam and is hired by a broker-dealer (BD) as a sales assistant. Prior to taking a qualification exam, which of the following functions is she permitted to perform at the BD?
A. Accept interdealer orders from other BDs
B. Take unsolicited trade orders from customers
C. Perform clerical work for the BD's investment banking department
D. Call established customers of the BD to prequalify them for a new product offering
Answer: C
