Free Practice FINRA SIE Exam Questions 2025

Stay ahead with 100% Free Securities Industry Essentials (SIE) SIE Dumps Practice Questions

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Total 166 Questions | Updated On: Apr 24, 2025

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Question 1

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 : Only closing transactions are permitted.

B : The customer is barred from trading for 30 days.

C : The customer's account is frozen for 90 days.

D : All related accounts are frozen for 90 days.

Answer: C

Question 2

Which of the following statements is true regarding 529 savings plans?

A : 529 contributions are tax deductible in all states

B : There are income limitations for contributing to a 529 savings plan.

C : The account beneficiary has control over the assets in a 529 savings plan.

D : Assets are transferable to another 529 savings plan tax-free if the new beneficiary is a family member of the current beneficiary.

Answer: D

Question 3

A customer purchased $80,000 of Fund XYZ two years ago. He now wants to buy $50,000 of Fund LMN offered within the same fund family, which offers a $100,000 breakpoint under right of accumulation. Which of the following statements is true?

A : The additional investment qualifies for a $100,000 breakpoint.

B : Each fund requires contributions of $100,000 to qualify for a breakpoint.

C : The customer must sign a new letter of intent to receive the $100,000 breakpoint on the additional purchase.

D : The customer will receive a sales charge discount on his next purchase after the account balance of the fund reaches $100,000.

Answer: A

Question 4

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 : Hypothecation

C : Loan processing

D : Claim processing

Answer: A

Question 5

Company ABC stock currently trades on an exchange. An ABC insider wants to sell a large number of shares of her privately held ABC stock. ABC files the necessary paperwork to register the shares, but the insider decides to wait and sell the stock at a later date. Which of the following terms best describes the type of offering that is occurring in this situation?

A : A rights offering

B : A private offering

C : An exempt offering

D : A secondary offering

Answer: D

Page: 1 / 34

Total 166 Questions | Updated On: Apr 24, 2025

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