Finra SIE Exam Questions - Navigate Your Path to Success

The Finra Securities Industry Essentials Exam (SIE) exam is a good choice for Financial Regulatory Analysts and if the candidate manages to pass Finra Securities Industry Essentials Exam, he/she will earn Finra Securities Industry Essentials Certification. Below are some essential facts for Finra SIE exam candidates:

In actual Finra Securities Industry Essentials Exam (SIE) exam, a candidate can expect 75 Questions and the officially allowed time is expected to be around 45 Minutes.
TrendyCerts offers 164 Questions that are based on actual Finra SIE syllabus.
Our Finra SIE Exam Practice Questions were last updated on: Mar 04, 2025

Sample Questions for Finra SIE Exam Preparation

Question 1

Pursuant to the Securities Act of 1933, registration is required for which of the following securities?

APrivate placements

BMunicipal securities

CU.S. government issues

DOpen-end investment companies

Correct : D

The Securities Act of 1933 requires securities offered to the public to be registered with the SEC unless they qualify for an exemption. Open-end investment companies (mutual funds) are not exempt and must register.

D is correct because mutual funds are publicly offered and require registration.

A is incorrect because private placements are exempt under Regulation D.

B is incorrect because municipal securities are exempt under Section 3(a)(2).

C is incorrect because U.S. government securities are also exempt under Section 3(a)(2).

Options Selected by Other Users:

A :

1 Votes 10%

B :

1 Votes 10%

C :

0 Votes 0%

D :

9 Votes 90%

Question 2

A broker-dealer (BD) is underwriting an initial public offering (IPO). According to industry rules, which of the following customers is eligible to participate in the IPO?

AAn unregistered sales assistant employed by the BD

BThe BD's branch office manager's unemployed spouse

CA customer of the BD who is the president of a local bank

DThe chief financial officer of a fast-food chain, whose brother is a registered representative employed by the BD

Correct : C

FINRA Rule 5130 restricts participation in IPOs for certain individuals (e.g., restricted persons) to prevent potential conflicts of interest. Restricted persons include employees of broker-dealers and their immediate family members.

C is correct because the president of a local bank is not considered a restricted person under FINRA Rule 5130.

A is incorrect because employees (registered or not) of broker-dealers are restricted.

B is incorrect because immediate family members of broker-dealer employees are restricted, even if unemployed.

D is incorrect because the immediate family of a registered representative is restricted.

Options Selected by Other Users:

A :

0 Votes 0%

B :

0 Votes 0%

C :

8 Votes 80%

D :

1 Votes 10%