SIE question bank
1,867 free SIE practice questions with answers
Every SIE question below includes the correct answer and a full explanation, organized into 14 topics from the Securities Industry Essentials (SIE) Exam. Updated July 3, 2026.
Economic Indicators
46 questions
- Which of the following is a tool the Federal Reserve uses to implement monetary policy?
- Fiscal policy is controlled by which entity?
- The federal funds rate is best described as:
Equity Securities
183 questions
- Which of the following rights is typically associated with common stock ownership?
- A company with 1,000,000 shares outstanding plans to issue 200,000 new shares. An…
- A cumulative preferred stock has a $4 annual dividend. The company skipped dividends for…
Debt Securities
237 questions
- When interest rates rise, what generally happens to existing bond prices?
- A tombstone advertisement for a new securities offering is permitted during the…
- Who regulates the municipal securities market and establishes rules for municipal…
Investment Companies & Packaged Products
308 questions
- A market maker is best described as a dealer that:
- Under the Investment Company Act of 1940, which of the following is a type of registered…
- Which type of investment vehicle is regulated by the Investment Company Act of 1940?
Options
216 questions
- A market maker quotes a stock at $25.00 bid / $25.15 ask. If a customer sells 100 shares…
- In a firm commitment underwriting, the underwriter:
- The underwriting spread (or gross spread) in a firm commitment offering represents:
Risk & Portfolio Management
53 questions
- Reinvestment risk is GREATEST for which type of bond?
- Credit risk is MOST relevant to investors in:
- Which of the following investments has the HIGHEST liquidity risk?
Account Types
123 questions
- A custodian bank that holds securities on behalf of an institutional investor is…
- What is the minimum initial margin requirement for purchasing stock on margin, as set by…
- An investor who wishes to avoid borrowing funds and only pay for securities in full…
Customer Accounts & Suitability
30 questions
- A registered rep recommends an investment that pays a higher commission but is less…
- A registered investment adviser managing client portfolios has which of the following…
- A trustee for a pension plan invests in speculative stocks hoping to boost returns. The…
Trading & Settlement
198 questions
- Which organization serves as the primary clearinghouse for securities transactions in the…
- When a broker-dealer executes a trade on behalf of a customer and charges a commission,…
- The standard settlement cycle for most U.S. equity trades is:
Capital Markets & Offerings
142 questions
- FINRA is best described as which type of organization?
- What is the key distinction between a broker-dealer and an investment adviser?
- Which market participant is responsible for maintaining records of security ownership and…
Regulatory Framework
174 questions
- Which federal agency has primary responsibility for enforcing the federal securities laws…
- What is the primary purpose of the Securities Investor Protection Corporation (SIPC)?
- The Municipal Securities Rulemaking Board (MSRB) writes rules for which of the following?
Communications & Sales Practices
48 questions
- Every broker-dealer must establish an Anti-Money Laundering (AML) compliance program that…
- Under FINRA rules, each member firm is required to establish and maintain a system of…
- Under FINRA Rule 3110, which of the following is TRUE regarding the review of a…
Anti-Money Laundering & Reporting
26 questions
- 529 plans are classified as municipal fund securities and are regulated by:
- Under the USA PATRIOT Act, broker-dealers must implement a Customer Identification…
- Under the Bank Secrecy Act, broker-dealers must file a Suspicious Activity Report (SAR)…
Prohibited Activities & Ethics
83 questions
- A broker learns that a client is about to place a large order that will likely affect a…
- An employee gives nonpublic, material information about a company to a friend who trades…
- A broker found guilty of front-running may be subject to which consequences?