FINRA SIE Exam Questions Free Practice Test

Viewing page 5 out of 5 pages

Viewing questions 41-50 out of questions

Questions # 41:

Which of the following products is the most appropriate class of investments for a customer looking for income and capital gains?

Options:

A growth stock

A money market account

A blue-chip stock mutual fund

Treasury Separate Trading of Registered Interest and Principal of Securities (STRIPS)

Expert Solution

Questions # 42:

In a rising interest rate environment, which of the following statements is true regarding the price of fixed-rate corporate bonds?

Options:

Their price will remain constant.

Their price will revert to par value.

Their price will appreciate in value.

Their price will depreciate in value.

Expert Solution

Questions # 43:

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?

Options:

$1,000

$2,500

$5,000

$25,000

Expert Solution

Questions # 44:

In performing fundamental analysis of an equity, which of the following elements should an investor consider?

Options:

Chart patterns

Moving average

Financial statements

Resistance and support levels

Expert Solution

Questions # 45:

Which of the following responses describes a warrant?

Options:

An interest-paying security

Redemption rights for a debt instrument

The right to purchase a specified amount of shares

A fixed-income security issued by a state or municipality

Expert Solution

Questions # 46:

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

Options:

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

Expert Solution

Questions # 47:

A customer will be out of the country for the next two months on business and asks his firm to hold his mail until he returns. Which of the following statements is true regarding this request?

Options:

The firm is prohibited from holding the customer's mail under FINRA rules due to the personal information contained.

The firm must receive written instructions from the customer that include the time period for the requested mail hold.

The firm is permitted to hold the mail as long as the registered representative (RR) complies with the customer's oral instructions.

At the discretion of the RR, the firm is permitted to hold the customer's mail provided it takes reasonable actions to ensure no tampering occurs with this mail.

Expert Solution

Questions # 48:

If a company with a single outstanding bond issue chooses to extinguish this debt through refunding, which of the following actions will occur?

Options:

The company will issue stock to replace the bonds.

The company will retire one debt with the proceeds from another issue.

The company will buy back the bonds, at a discount, from the bondholders.

The company will establish a sinking fund for use in making regular open-market purchases of the bonds.

Expert Solution

Questions # 49:

Which of the following statements is true with regard to SIPC and FDIC?

Options:

SIPC coverage is only for securities, and FDIC coverage is only for cash.

SIPC protects brokerage accounts, and FDIC protects bank deposits.

Money market mutual funds are covered by the FDIC and are not covered by SIPC.

Securities held at broker-dealers are covered by the FDIC and are not covered by SIPC.

Expert Solution

Viewing page 5 out of 5 pages

Viewing questions 41-50 out of questions

Pass the FINRA General Securities Representative SIE Questions and answers with CertsForce