Free Preparation Discussions
MENU
Finra SIE Exam Questions
- Topic 1: Regulatory Entities, Agencies, and Market Participants: This section of the exam measures the skills of Financial Regulatory Analysts and covers the structure, authority, and jurisdiction of key regulatory bodies overseeing financial markets. The SEC's role in enforcing securities regulations is assessed, along with the authority of self-regulatory organizations such as FINRA and MSRB. Candidates must also understand the functions of other financial regulators, including the Department of the Treasury and state regulatory agencies. One key skill evaluated is identifying the jurisdictional scope of different financial regulators.
- Topic 2: 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 3: 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.
- Topic 4: Understanding Trading, Customer Accounts, and Prohibited Activities: This section of the exam measures the skills of Securities Traders and focuses on different trading strategies, settlement processes, and corporate actions. Candidates must demonstrate knowledge of order types, including market, limit, stop, and good-til-canceled orders, as well as bid-ask spreads and discretionary versus non-discretionary trading.
- Topic 5: 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 6: 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.
Free Finra SIE Exam Actual Questions
Note: Premium Questions for SIE were last updated On May. 24, 2026 (see below)
A registered representative (RR) intends to enter into an arrangement for compensation with an unaffiliated entity to participate in the sale of promissory notes to the general public. Which of the following statements is true?
Step by Step
Private Securities Transactions: Under FINRA Rule 3280, RRs must obtain written approval from their employing firm before participating in the sale of securities outside the firm.
Promissory Notes: These are typically considered securities, requiring prior approval.
Incorrect Options:
A & C: Notification alone is insufficient; written approval is required.
D: Promissory notes are generally treated as securities under federal law.
FINRA Rule 3280 (Private Securities Transactions): FINRA Rule 3280.
Which of the following statements is true regarding the ownership of investment company shares held as tenants in common?
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.
Which of the following statements is true of an index exchange-traded fund (ETF)?
Passive ETFs track an index and require minimal management, leading to lower expenses compared to actively managed ETFs.
D is correct because passive ETFs are cost-efficient and have lower fees.
A is incorrect because index ETFs have low turnover since they replicate an index.
B is incorrect because ETFs are priced continuously throughout the trading day.
C is incorrect as ETFs aim to match, not outperform, the index.
Which of the following rates is the interest rate at which banks borrow and lend to each other on an overnight basis?
Step by Step
Federal Funds Rate: The rate at which depository institutions lend reserves to each other overnight. It is set by the Federal Open Market Committee (FOMC).
Other Rates:
Prime Rate: Rate banks charge their most creditworthy customers.
Discount Rate: Rate the Federal Reserve charges banks for borrowing directly from it.
LIBOR: Interbank lending rate used internationally, now being phased out.
Federal Reserve Explanation of Rates: Federal Funds Rate.
Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?
Step by Step
Outside Business Activity Definition: Per FINRA Rule 3270, an OBA involves compensated business activities outside the scope of the RR's role at their firm. Passive investments are excluded because they do not require active involvement.
Incorrect Options:
A, B, and C: Selling real estate, selling insurance, and refereeing are considered OBAs as they involve active participation and compensation.
FINRA Rule 3270 (Outside Business Activities): FINRA Rule 3270.
- Select Question Types you want
- Set your Desired Pass Percentage
- Allocate Time (Hours : Minutes)
- Create Multiple Practice tests with Limited Questions
- Customer Support
Michelle Hernandez
3 days agoEmma Morris
20 days agoRichard Williams
1 month agoSarah Phillips
27 days agoDonna Clark
19 days agoAshley Bailey
15 days agoAdam Bailey
13 days agoChristopher Ramirez
28 days agoTequila
2 months agoShawnta
2 months agoDaniel
2 months agoJulio
3 months agoLavonne
3 months agoCorrinne
3 months agoMarguerita
4 months agoMyrtie
4 months agoLawanda
4 months agoKeith
4 months agoLauran
4 months agoAnnabelle
5 months agoSalena
5 months agoAlfred
5 months agoNana
5 months agoJesusa
6 months agoDannette
6 months agoLisbeth
6 months agoCelia
7 months agoAnthony
7 months agoArthur
7 months agoHenriette
7 months agoDarell
8 months agoIlda
8 months agoKarma
8 months agoCassie
8 months agoPaulina
8 months agoAvery
9 months agoEssie
9 months agoBeth
11 months agoLizette
1 year agoErin
1 year agoTarra
1 year agoLeota
1 year agoNichelle
1 year agoPeggie
1 year agoJesusita
1 year agoBelen
1 year ago