Course 2025 SIE Test Prep Training Practice Exam Download [Q13-Q28]

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Course 2025 SIE Test Prep Training Practice Exam Download

SIE Exam Info and Free Practice Test Professional Quiz Study Materials

QUESTION 13
Which of the following statements is true regarding the difference in treatment between common stock and preferred stock?

Common stock and preferred stock are treated the same under a bankruptcy proceeding.

Common stock and preferred stock are treated the same when it comes to payment of dividends.

Common stock dividend payment is treated as a higher priority over that of preferred stock.

Common stock is a lower priority compared to preferred stock under a bankruptcy proceeding.

QUESTION 14
Which of the following is a reportable obligation with respect to an individual’s Form U4?

A speeding ticket

A change of residential address

A change of business telephone number

A gambling-related misdemeanor charge

QUESTION 15
For up to how many business days is a firm initially permitted to place a temporary hold on disbursements for a specified adult account in which the firm reasonably believes financial exploitation has occurred?

3 business days

5 business days

10 business days

15 business days

QUESTION 16
A customer is unhappy about a $5,000 loss in a stock that the registered representative (RR) recommended and threatens to call FINRA’s Securities Helpline for Seniors about the matter. What is the most appropriate next step for the RR to take?

The RR should notify their supervisor about the customer’s dissatisfaction.

The RR is permitted to reimburse the customer for the loss to resolve the customer’s complaint.

The RR should alert their compliance department to update their Form U4 with the complaint details.

The RR should call FINRA’s Securities Helpline for Seniors before the customer does and explain their side of the story.

QUESTION 17
Which of the following risks are associated with Treasury securities?

Credit risk

Liquidity risk

Prepayment risk

Interest rate risk

QUESTION 18
Which of the following listed securities carries voting rights?

Common stock

Preferred stock

Corporate bond

Convertible bond

QUESTION 19
Which of the following entities settles broker-to-broker equity, listed corporate and municipal bond, and unit investment trust (UIT) transactions in the U.S. equities markets?

SEC

FINRA

Federal Reserve

National Securities Clearing Corporation (NSCC)

QUESTION 20
An investor holds 1,000 shares of a stock with a total cost basis of $5,000 in his account when a 1-for-5 reverse stock split is announced. What will be the investor’s total cost basis after the payable date of the reverse split?

$1,000

$2,500

$5,000

$25,000

QUESTION 21
Which of the following statements best describes a characteristic of 529 savings plan accounts?

There are no contribution limits to the account.

The number of contributors to the account is limited.

Using funds for undergraduate or graduate studies is permissible.

Earnings are taxed to the donor at the time of a qualified withdrawal.

QUESTION 22
Company ABC stock currently trades on an exchange. An ABC insider wants to sell a large number of shares of her privately held ABC stock. ABC files the necessary paperwork to register the shares, but the insider decides to wait and sell the stock at a later date. Which of the following terms best describes the type of offering that is occurring in this situation?

A rights offering

A private offering

An exempt offering

A secondary offering

QUESTION 23
A customer purchased $80,000 of Fund XYZ two years ago. He now wants to buy $50,000 of Fund LMN offered within the same fund family, which offers a $100,000 breakpoint under right of accumulation. Which of the following statements is true?

The additional investment qualifies for a $100,000 breakpoint.

Each fund requires contributions of $100,000 to qualify for a breakpoint.

The customer must sign a new letter of intent to receive the $100,000 breakpoint on the additional purchase.

The customer will receive a sales charge discount on his next purchase after the account balance of the fund reaches $100,000.

QUESTION 24
If an investor is bullish on ABC, which of the following actions will he most likely take?

Buy ABC puts

Buy ABC stock

Sell ABC calls

Sell ABC stock short

QUESTION 25
A municipal securities dealer makes a political contribution of $990 to a local mayoral candidate. At the end of the quarter, to whom, if anyone, must the dealer report the contribution?

MSRB

SEC

No disclosure required as the amount is below the reporting threshold

FINRA

QUESTION 26
Which of the following statements best describes an American Depositary Receipt (ADR)?

ADRs trade like U.S. issues and are quoted in U.S. dollars.

ADRs trade like U.S. issues and are quoted in foreign currency.

ADRs represent shares of a U.S. security held in foreign commercial banks.

ADRs represent shares of a foreign security held in foreign commercial banks.

QUESTION 27
The cash value of a variable life insurance policy is affected by which of the following factors?

Changes in the beneficiary

Changes in the death benefit

Fluctuating market conditions

Contingent deferred sales charges

QUESTION 28
A hypothecation agreement gives the broker-dealer the right to engage in which of the following activities?

Sharing customers’ nonpublic personal information with nonaffiliated third parties

Entering trades in a customer’s account without prior authorization from the customer

Selling a customer’s securities when the customer has failed to pay for trades in a cash account

Using securities that a customer has bought on margin as collateral to obtain a loan from a bank

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