Skip to content

SIE Practice Exams
SIE Prep Courses
Other Practice Exams
- Series 3
- Series 4
- Series 6
- Series 7
- Series 9
- Series 10
- Series 24
- Series 26
- Series 27
- Series 57
- Series 63
- Series 65
- Series 66
- Series 79
- Series 99

SIE Practice Exam 16

SIE Practice Exams

Practice Exam 1
Practice Exam 2
Practice Exam 3
Practice Exam 4
Practice Exam 5
Practice Exam 6
Practice Exam 7
Practice Exam 8
Practice Exam 9
Practice Exam 10
Practice Exam 11
Practice Exam 12
Practice Exam 13
Practice Exam 14
Practice Exam 15
Practice Exam 16
Best Prep Courses

SIE Practice Exam 16

Time limit: 0

Quiz Summary

0 of 10 Questions completed

Questions:

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Exam complete. Results are being recorded.

Results

0 of 10 Questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 point(s), (0)

Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)

Categories

Not categorized 0%

Next Exam Main Menu

Question 1 of 10

1. Question

Each of the below are investment characteristics of an ETF with the exception of:

ETF shares are marginable
Correct Incorrect Correct answer

ETF shares are often sector-driven portfolios
Correct Incorrect Correct answer

ETF shares trade every day based upon end-of-day NAV.
Correct Incorrect Correct answer

None of these are exceptions
Correct Incorrect Correct answer

Correct

Incorrect
Question 2 of 10

2. Question

Your client with a substantial portfolio of listed stocks has asked you if there is a way to mitigate downside systematic risk without having to sell off large portions of the portfolio. You suggest which of the following?

Consider the use of Broad-based Index put options
Correct Incorrect Correct answer

Consider liquidating a small portion of the portfolio and reinvesting it in money market funds.
Correct Incorrect Correct answer

Consider the use of Broad-based Index call options
Correct Incorrect Correct answer

It may be time to exit the stock market and go to investments that don’t have market risk, such as fixed annuities or insured bank deposits.
Correct Incorrect Correct answer

Correct

Incorrect
Question 3 of 10

3. Question

When you recommend a DPP investment to a client, it is more than likely that this client:

Is seeking higher than average market returns
Correct Incorrect Correct answer

Is seeking an investment with flow-through tax benefits
Correct Incorrect Correct answer

Is seeking an investment with above average liquidity
Correct Incorrect Correct answer

Is seeking an investment which gives the investor direct control of the enterprise.
Correct Incorrect Correct answer

Correct

Incorrect
Question 4 of 10

4. Question

Liquidity risk is frequently a concern when making recommendations to customers. With respect to the following investments, which provides the lesser liquidity under normal circumstances?

Regional stock exchange listed issues
Correct Incorrect Correct answer

General obligation bonds
Correct Incorrect Correct answer

Corporate stocks listed on the Pink Quote system
Correct Incorrect Correct answer

NASDAQ Small capitalization stocks.
Correct Incorrect Correct answer

Correct

Incorrect
Question 5 of 10

5. Question

When a publicly-traded corporation is offering new shares to raise additional capital, this is better known as a:

Primary distribution
Correct Incorrect Correct answer

Secondary distribution
Correct Incorrect Correct answer

Split offering
Correct Incorrect Correct answer

IPO
Correct Incorrect Correct answer

Correct

Incorrect
Question 6 of 10

6. Question

Under what conditions may a registered representative share in the profits and losses in a customer’s account?

FINRA rules do not permit this.
Correct Incorrect Correct answer

When the sharing is in direct proportion to the RRs contribution to the account
Correct Incorrect Correct answer

When permitted by the Compliance Department of the RRs firm and the client
Correct Incorrect Correct answer

Sharing in profits is permitted but sharing in losses is considered a type of guarantee against loss and is not permitted.
Correct Incorrect Correct answer

Correct

Incorrect
Question 7 of 10

7. Question

The current yield of a bond with a 6% coupon trading in the bond market at 120 is:

6% — the annual interest is a constant regardless of CMV of the bond
Correct Incorrect Correct answer

$ 60 per bond
Correct Incorrect Correct answer

5.0%
Correct Incorrect Correct answer

Cannot be determined without knowing the maturity date of the bond.
Correct Incorrect Correct answer

Correct

Incorrect
Question 8 of 10

8. Question

An open-end investment company with a stated investment objective of concentrating its portfolio in a particular market segment is best described as a:

Growth fund
Correct Incorrect Correct answer

Specialized fund
Correct Incorrect Correct answer

Diversified fund
Correct Incorrect Correct answer

Non-diversified fund
Correct Incorrect Correct answer

Correct

Incorrect
Question 9 of 10

9. Question

A mutual fund has a NAV of $19 as of the market close. The fund charges a 5% sales load. An investor purchasing the minimum investment would pay:

Less than $19
Correct Incorrect Correct answer

$19
Correct Incorrect Correct answer

More than $19
Correct Incorrect Correct answer

A price based upon supply and demand
Correct Incorrect Correct answer

Correct

Incorrect
Question 10 of 10

10. Question

Under the Investment Company Act of 1940, when a client redeems mutual fund shares, the proceeds are based on:

Their original investment, minus any redemption fee
Correct Incorrect Correct answer

Sales proceeds received within 1 business day
Correct Incorrect Correct answer

The most recent NAV per share
Correct Incorrect Correct answer

The next calculated NAV per share
Correct Incorrect Correct answer

Correct

Incorrect

1
2
3
4
5
6
7
8
9
10

Next: Best SIE Prep Courses

Disclaimer: FINRA®, SIE®, and Securities Industry Essentials® are trademarks of the Financial Industry Regulatory Authority (FINRA). This website is not affiliated with, endorsed by, or approved by FINRA. All trademarks are the property of their respective owners.

© 2025 FINRA Practice Tests • Built with GeneratePress