QUIZ FINRA - SIE - RELIABLE VALID SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) TEST REVIEW

Quiz FINRA - SIE - Reliable Valid Securities Industry Essentials Exam (SIE) Test Review

Quiz FINRA - SIE - Reliable Valid Securities Industry Essentials Exam (SIE) Test Review

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Tags: Valid SIE Test Review, Latest SIE Practice Materials, SIE Accurate Test, Certified SIE Questions, SIE Free Test Questions

Once you learn all SIE questions and answers in the study guide, try 2Pass4sure's innovative testing engine for exam like SIE practice tests. These tests are made on the pattern of the SIE real exam and thus remain helpful not only for the purpose of revision but also to know the real exam scenario. To ensure excellent score in the exam, SIE Braindumps are the real feast for all exam candidates. They contain questions and answers on all the core points of your exam syllabus. Most of these questions are likely to appear in the SIE real exam.

FINRA SIE Exam Syllabus Topics:

TopicDetails
Topic 1
  • Market Structure: This section of the exam measures the skills of Equity Market Specialists and covers the classification of financial markets, including the primary, secondary, third, and fourth markets. Candidates must demonstrate knowledge of electronic trading, over-the-counter (OTC) markets, and physical exchanges. One specific skill tested is differentiating between various market types and their operational mechanisms.
Topic 2
  • Overview of the Regulatory Framework: This section of the exam measures the skills of Compliance Officers and evaluates knowledge of self-regulatory organization (SRO) requirements, including registration and continuing education for associated persons. Candidates must understand the distinction between registered and non-registered individuals and the requirements for maintaining industry qualifications.
Topic 3
  • Employee Conduct and Reportable Events: This section of the exam measures the skills of Financial Compliance Specialists and covers regulatory expectations regarding employee conduct and disclosure requirements. Candidates must be familiar with Form U4 and Form U5, as well as reporting obligations for outside business activities and political contributions.
Topic 4
  • Understanding Products and Their Risks: This section of the exam measures the skills of Investment Analysts and examines different financial products and associated risks. Candidates must understand equity securities, including common stock, as well as debt instruments such as Treasury securities and mortgage-backed securities.

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Latest SIE Practice Materials - SIE Accurate Test

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FINRA Securities Industry Essentials Exam (SIE) Sample Questions (Q13-Q18):

NEW QUESTION # 13
On settlement date, a customer is unable to pay for a purchase in his cash account. His position is liquidated.
Which of the following statements is true according to Federal Reserve Regulation T?

  • A. The customer's account is frozen for 90 days.
  • B. The customer is barred from trading for 30 days.
  • C. Only closing transactions are permitted.
  • D. All related accounts are frozen for 90 days.

Answer: A

Explanation:
Federal Reserve Regulation T mandates that customers must pay for purchases in a cash account within two business days of settlement (T+4). If payment is not made, the brokerage firm must liquidate the securities and place the account on a 90-day restriction.
* C is correctbecause the customer's account is frozen for 90 days, during which all trades must be paid for in advance.
* Ais incorrect as closing transactions are still permitted but require prepayment.
* Bis incorrect because the restriction lasts for 90 days, not 30.
* Dis incorrect as only the delinquent account, not related accounts, is frozen.


NEW QUESTION # 14
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. Securitization
  • B. Claim processing
  • C. Loan processing
  • D. Hypothecation

Answer: A

Explanation:
Step by Step Explanation:
* Securitization: The process of pooling financial assets, such as mortgage loans, and creating asset- backed securities that investors can buy.
* Incorrect Options:
* B: Hypothecation refers to pledging assets as collateral.
* C & D: Loan and claim processing are administrative terms, not related to the creation of securities.
References:
* SEC Guidance on Asset-Backed Securities: SEC ABS Info.


NEW QUESTION # 15
Which of the following activities is a responsibility of a mutual fund transfer agent?

  • A. Maintaining records of shareholder purchases and redemptions
  • B. Underwriting new shares of securities
  • C. Distributing the fund's prospectus to investors
  • D. Maintaining custody of the fund's securities

Answer: A

Explanation:
A transfer agent is responsible for maintaining accurate records of shareholder purchases, redemptions, and account balances. They also handle the issuance and cancellation of shares and ensure shareholders receive appropriate distributions.
* D is correctbecause maintaining shareholder records is a core duty of a transfer agent.
* Ais incorrect because underwriting is the responsibility of a broker-dealer.
* Bis incorrect because distributing the prospectus is handled by the fund's distributor.
* Cis incorrect because custody of securities is the role of a custodian, not the transfer agent.


NEW QUESTION # 16
Which of the following risks are associated with Treasury securities?

  • A. Liquidity risk
  • B. Prepayment risk
  • C. Interest rate risk
  • D. Credit risk

Answer: C

Explanation:
Step by Step Explanation:
* Interest Rate Risk: Treasury securities are sensitive to changes in interest rates. When rates rise, Treasury prices fall, exposing investors to price risk.
* Incorrect Options:
* Credit Risk: Virtually nonexistent for Treasuries, as they are backed by the U.S. government.
* Liquidity Risk: Treasuries are highly liquid.
* Prepayment Risk: Applies to mortgage-backed securities, not Treasuries.
References:
* SEC Bond Risk Disclosures: SEC Treasury Risks.


NEW QUESTION # 17
Under SEC Regulation A, which of the following market participants, if deemed to be a bad actor, will disqualify the offering from reliance on this registration exemption?

  • A. Custodian
  • B. Transfer agent
  • C. Underwriter
  • D. Clearing corporation

Answer: C

Explanation:
SEC Regulation A provides a registration exemption for smaller public offerings but includes a "bad actor" disqualification. If certain key parties, such as the issuer, underwriter, or affiliates, have been involved in securities violations, the exemption is forfeited.
* B is correctbecause underwriters are considered essential participants, and their status as bad actors disqualifies the offering.
* A,C, andDare incorrect because custodians, transfer agents, and clearing corporations are not included in the "bad actor" provisions of Regulation A.


NEW QUESTION # 18
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