SIE Practice Exam 4

The SIE Practice Exam 4 has 25 multiple-choice questions designed to be similar to those you might find on the actual SIE exam.

The correct answer will be revealed instantly (in case you got it wrong), along with a detailed explanation for each question that you answered. At the end of practice exam 4, you will be able to see your score, review your mistakes, and check if you have achieved the 70% passing rate.

You can retake this free SIE practice exam 4 as many times as you like.

SIE Practice Exam 4: Overview of the Regulatory Framework

Our 4th batch of SIE practice questions focuses on the regulatory framework governing associated persons in the securities industry. This practice exam covers topics such as SRO regulatory requirements for associated persons, including the qualification and registration criteria, distinctions between registered and non-registered individuals, permissible activities, background checks, fingerprinting, and statutory disqualifications.

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

1. When the market price of a company’s common stock has reached triple digits ($100 or above), the Board of Directors may elect to declare which of the below to make the shares more affordable?

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

2. When an agent engages in securities activities outside the scope of their broker-dealer,

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3. The regulatory element of continuing education must be completed on the

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4. The SEC has declared a new public offering effective. This indicates that

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5. The Securities Investor Protection Corporation (SIPC) protects customers from

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

6. Which of the following events would subject an individual to a statutory disqualification?

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7. When a broker-dealer acts on an agency basis to help a customer complete trades, the firm normally is compensated through

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

8. The agency in charge of maintaining a list of individuals and institutions for which opening a brokerage account may be prohibited or restricted is known as:

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

9. The maximum coverage offered per separate customer under SIPC insurance was set by Congress at:

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

10. Many folks living across the country choose to participate in their state’s 529 college savings plan. These investment programs are generally referred to by FINRA as:

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

11. All states have a securities Administrator whose job it is to enforce the securities laws of their state. All Administrators are part of an organization known as:

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

12. Henry and Jennifer, a married couple, have a net worth of $800,000, excluding home equity. Their income has been about $250,000 for several years. Are they eligible to participate in a private placement of securities as accredited investors?

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

13. Which of the following is not an example of a restricted person under FINRA rules?

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

14. Which of the following interest rates is established by the Federal Reserve Board?

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

15. Every FINRA member firm must have in place a Business Continuity Plan which addresses:

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16. United States government budgetary and taxation policies are best described as:

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

17. Depreciation write-offs represent which of the following?

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18. Which of the following investment instruments trades on an exchange at a market price not directly related to its net asset value?

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19. Among the reasons a corporate Board would declare a stock split

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

20. Preferred stock includes which of the following features?

I. Voting rights
II. Dividends if declared by the Board of Directors
III. Priority over debentures in a corporate liquidation

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21. In the business of underwriting, when a firm adopts a firm commitment, it is acting as a:

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22. SIPC, the securities investor protection corporation is:

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23. A customer must sign and return the options account agreement

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

24. The US economy has traditionally performed in a way described by economists and analysts as the business cycle. When an economy that has been operating a peak efficiency begins to slow down, which phase of the cycle is the economy entering?

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25. The term ‘issuer’ most often refers to:

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26. Which of the following regulators enforce the MSRB rules for securities firms?

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27. The term ‘disclaimer’ is most often associated with the fact that:

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28. A communication made available to 20 institutional clients and 20 retail clients is classified as

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29. In a 401(k) with a Roth account option, how are employer-matching contributions allocated?

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

30. When investors put their capital at risk, they rely upon the input and advice of their financial advisors, persons associated with a broker-dealer who has been trained in the field of investments and investment risks. As a concept, hedging has its primary purpose:

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31. All of the following are full disclosure documents used in the sale of securities with the exception of:

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32. A primary difference between Ginnie Mae and Fannie Mae/Freddie Mac is that Ginnie Mae

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33. As part of Rule 144A, the SEC created another category of financially sophisticated investors known as

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34. When reviewing the definitions of broker-dealers and investment advisers, one would find that:

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35. SIPC is an insurance organization designed to protect investors against loss:

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36. Pursuant to Regulation S-P, a broker-dealer must provide a privacy notice to a customer

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37. When a commercial bank elects to borrow short-term, often overnight, loans from another commercial bank, these loans are done at an interest rate known as the:

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38. Which of the following is a key difference between a Traditional IRA and a Roth IRA?

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

39. A candidate who fails the SIE exam three times and has waited for the six-month moratorium period is preparing to take the exam for the fourth time. Which of the following is true?

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Category: SIE Practice Exam 4: Overview of the Regulatory Framework

40. Helen opened a Roth IRA last year and wants to know what part of this year’s contributions she can deduct. The answer is

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Looking for More Practice Questions?

If you’ve already mastered our SIE Practice Exam 4 or want to test your knowledge of SIE with regard to other topics, you can check out our other sets of practice tests.