Finra SIE Exam - Topic 1 Question 24 Discussion

Actual exam question for Finra's SIE exam

Question #: 24
Topic #: 1

Which of the following statements is true regarding the ownership of investment company shares held as tenants in common?

AAll tenants must sign redemption requests.

BAny income is distributed evenly among the tenants.

CEach tenant has a fractional interest in the investment.

DUpon the death of a tenant, all shares in the account are taxable in the estate of the deceased.

Show Suggested Answer

Suggested Answer: C

Step by Step

Tenants in Common: In this arrangement, each tenant owns a fractional interest in the account's assets, which can be unequal depending on the agreement.

Income Distribution: Income is distributed based on ownership percentage, not necessarily equally.

Redemption Requests: Only the owner of the fractional interest has authority to request redemption for their portion.

Estate Taxation: Upon the death of a tenant, only their fractional interest is taxable in their estate.

FINRA Guidelines on Joint Accounts: FINRA Joint Accounts.

by Yvonne at May 16, 2026, 05:35 PM

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