FINRA Securities Industry Essentials Exam (SIE) : SIE valid dumps

SIE real exams

Exam Code: SIE

Exam Name: Securities Industry Essentials Exam (SIE)

Updated: Jan 17, 2025

Q & A: 87 Questions and Answers

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FINRA Securities Industry Essentials Exam (SIE) Sample Questions:

1. An investor sells shares of a closed-end fund at the market. Which of the following responses best describes the net proceeds to be received?

A) NAV less any redemption fee
B) Bid price less any commission
C) Net asset value (NAV)
D) Public offering price (POP) less any redemption fee


2. The formation of an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans is known as:

A) Hypothecation
B) Claim processing
C) Loan processing
D) Securitization


3. Which of the following statements is true regarding the difference in treatment between common stock and preferred stock?

A) Common stock and preferred stock are treated the same under a bankruptcy proceeding.
B) Common stock is a lower priority compared to preferred stock under a bankruptcy proceeding.
C) Common stock and preferred stock are treated the same when it comes to payment of dividends.
D) Common stock dividend payment is treated as a higher priority over that of preferred stock.


4. The process in which the buying firm must pay for the securities and the selling firm must deliver the securities is known as:

A) A corporate action
B) Clearing the trade
C) The settlement of the transaction
D) A delivery versus payment (DVP) transaction


5. If an investor is bullish on ABC, which of the following actions will he most likely take?

A) Buy ABC puts
B) Buy ABC stock
C) Sell ABC calls
D) Sell ABC stock short


Solutions:

Question # 1
Answer: B
Question # 2
Answer: D
Question # 3
Answer: B
Question # 4
Answer: C
Question # 5
Answer: B

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