FINRA SIE Practice Test 1

1. A registered principal or registered representative must retake the qualifying exam if his or her registration has been revoked or terminated for a period of ____________ or more.

2. An options contract that gives the holder the right to purchase the number of shares of the underlying security is a _________________.

3. What are the three General Telemarketing Requirements as stated in FINRA Rule 3230?

A. Time of Day Restriction, State Do-Not-Call List, and National Do-Not-Call List

B. State Do-Not-Call List, National Do-Not-Call List, and Firm-Specific Do-Not-Call List

C. Time of Day Restriction, Firm-Specific Do-Not-Call List, and State Do-Not Call List

D. Time of Day Restriction, National Do-Not-Call List, and Firm-Specific Do Not Call List

4. Excessive trading in a customer's account for no apparent reason other than to generate commissions is _______________.

B. Commingling funds

C. Guarantees against loss

D. Spreading market rumors

6. Any material for use in any newspaper, magazine, or other public medium, or by radio, television, or telephone recording, is referred to as ___________________.

C. A research report

7. What is the minimum time period that may be used in material promoting past records of research recommendations in connection with purchases or sales?

8. Annual continuing education training provided by member firms is known as__________.

A. Firm Continuing Education

B. Compliance Training

C. Firm Element Training

D. Firm Regulatory Training

C. Medical condition

10. Which of the following statements are true with respect to options communications that include historical performance?

A. A Registered Options Principal determines that the records or statistics fairly present the status of the recommendations or transactions reported upon

B. All relevant costs, including commissions, fees, and daily margin obligations, are disclosed and reflected in the performance

C. They must state that the results presented should not and cannot be viewed as an indicator of future performance

11. Which of the following is false regarding collateralized mortgage obligation (CMO) advertisements?

A. Advertisements may not contain a comparison with any other investment vehicle.

B. Advertisements may contain comparisons with CDs.

C. Advertisements must include a description of the initial issue tranche.

D. Advertisements that contain an anticipated yield must disclose the prepayment assumption used to calculate the yield.

12. Which of the following items are required in a research report that contains ratings?

A. The meaning of each rating must be defined.

B. The percentage of all securities rated by the member to which the member would assign a “buy,” “hold/neutral,” or “sell” rating must be disclosed.

C. The member must disclose the percentage of subject companies within the “buy,” “hold/neutral,” and “sell” ratings for whom the member has provided investment banking services within the previous 12 months.

D. All of the above.

13. Which of the following written communications is considered a research report?

A. An email that includes an analysis of equity securities of individual companies

B. A discussion of broad-based indices

C. A commentary on economic, political, or market conditions

D. A technical analysis concerning the demand and supply for a sector, index, or industry based on trading volume and price

15. If a person has made lifetime gifts totaling $4,000,000 and dies in 2020, what is the amount that will be paid in taxes if the total remaining estate is $20,000,000?

FINRA SIE Practice Test 1

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