FINRA SIE- Securities Industry Essentials Exam Mock Test

FINRA SIE PrepPro- Mastering FINRA SIE: Your Comprehensive Exam Prep Guide with 1400+ Questions Bank & Detailed Answer Explanations for the Securities Industry Essentials (SIE) Exam

Unlock your success in the Securities Industry Essentials (SIE) Exam with the “FINRA SIE Exam Preparation Guide: 1400+ Questions Bank.” This comprehensive resource is your ultimate interactive learning companion, offering a vast array of questions and answers to master the intricacies of the financial world. With over 1400+ questions, meticulously crafted to cover each learning outcome, this learning resource ensures a thorough understanding of the exam content. Divided into four units, it navigates through the essential domains: Knowledge of Capital Market, Understanding Products and Their Risks, Trading, Customer Accounts, & Prohibited Activities, and Overview of the Regulatory Framework.

This online mock test is part of our Printed Book with 3000+ Question Bank:SIE Exam Preparation Guide: Mastering FINRA SIE: Your Comprehensive Exam Prep Guide with 3000+ Questions Bank & Detailed Answer Explanations for the Securities Industry Essentials (SIE) Exam   

NOTE-You can avail the printed book from all major eCom platform like Amazon etc.

There are 6 Mock Test provided on this learning resource covering each test objective outlined by FINRA for respective unit.

• Knowledge of Capital Markets (250 Questions)

• Understanding Products and Their Risks (500 Questions)

• Understanding Trading, Customer Accounts and Prohibited Activities (500 Questions)

• Overview of Regulatory Framework (165 Questions)

Learning Outcome, Test Objectives & Knowledge Area Covered on this Online Mock Test

UNIT 1 – Knowledge of Capital Market

• Purpose of the primary markets

• Types of primary market offerings

• Participants in the primary market

• Process for offering a nonexempt issue

• Define shelf offerings and green shoe offerings

• Types of exempt issues and issuers

• Types of disclosure documents

• Purpose of the secondary markets

• Participants in the secondary markets

• Exchanges and the OTC market

• Role and authority of the Securities Exchange Commission

• Name the branches of the Treasury that have regulatory authority over the securities industry.

• Role of the Federal Reserve Bank

• Determine the protection provided by the FDIC

• Define the state administrators and NASAA

• Scope of authority of the Financial Industry Regulatory Authority

• MSRB scope of authority and enforcement powers.

• Recognize the Exchange’s regulatory authority

• Define GDP, CPI, and GNP leading, coincident, or lagging indicators

• inflation, deflation, stagnation, and hyperinflation

• Put the five phases of the business cycle in proper order.

• Define recession and depression

• Define the purpose of the Federal Reserve

• Define the measures of money supply and their use

• Active measures used by the Federal Reserve

• Four prominent interest rates

• Define the purpose of fiscal policy

• Differentiate demand- and supply-side theories

• Impact of exchange rates on trade and prices.

• Classify industries by type (cyclical, noncyclical, countercyclical, growth).

• Impact of the business cycle on different industries

• Recognize the components and uses of a balance sheet

• Components and uses of an income statement

UNIT2- Understanding Products and Their Risks

• Characteristics of common stock

• Define a security

• Dividends from common stock

• Benefits of owning common stock

• RIGHTS, WARRANTS

• Rule 144 Restricted stock and control persons

• Characteristics of American depositary receipts

• Characteristics of preferred stock

• Basic characteristics of bonds

• Relate yields and interest rates

• Ratings -Safety and volatility in bonds

• Features of a zero-coupon bond

• Features of bonds

• Types of corporate debt and order of liquidation

• Benefits and risks associated with debt securities

• Differentiate general obligation and revenue bonds & Tax Aspects

• Traits of T-bills, T-notes, and T-bonds

• STRIPS & TIPS

• Features of GNMA, FNMA, and FHLMC certificates

• Money market security

• Mortgage and asset-backed securities

• Define a derivative

• Define premium

• INTRINSIC VALUE, TIME VALUE, AND THE OPTION PREMIUM

• Differentiate equity, currency, and index options

• Calculate break even, maximum gain and maximum loss on an individual option contract.

• Determine how to best hedge risk with long options

• Determine the correct steps for adding options trading to a brokerage account.

• Indicate how to generate premium income by selling

• Role of the Options Clearing Corporation

• Classify the types of investment companies

• Open- and closed-end management companies

• Define variable annuity contracts

• Differentiate A, B, C, and no-load share classes

• Breakpoints, letters of intent, rights of accumulation, combination, and exchange privileges.

• Define forward pricing, Calculate NAV & expense ratio

• Name the four types of mutual fund prospectus

• Differentiate 529 college savings and prepaid tuition plans

• Use of local government investment plans

• Structure of a general partnership

• Types of limited partnerships

• DPP SUITABILITY AND TAXATION

• Three types of REITS.

• Suitability and risk issues of investing in a hedge fund

• Define ETFs and ETNs

• Advantages and disadvantages of ETFs & risks of ETNs.

• Define systematic risk.

• Define nonsystematic risk

• Ways to mitigate systematic and nonsystematic risk

UNIT3: Understanding Trading, Customer Accounts, and Prohibited Activities

• Define bullish and bearish sentiment

• Differentiate market and limit orders

• Define a stop order

• Identify specialized, day, and GTC instructions

• Define bid, ask, and size

• Associate buying and selling long.

• Recognize a solicited or unsolicited trade

• Settlement & Delivery

• Differentiate cash dividends from stocks and mutual funds.

• Ordinary income, investment income, and capital gains.

• Identify security benchmarks and indices

• Calculate cost basis and share price adjustments for stock dividends and stock splits.

• Define M&A and spin-off / buy back and a tender offer

• Tax consequences & Notification requirements for corporate actions

• Define proxy voting

• Differentiate individual and joint registrations

• Transfer on death and power of attorney instructions

• Define the different types of business accounts

• Differentiate living, revocable, and irrevocable trusts

• Define custodial accounts

• Differentiate ESAs and 529 plans

• Contribution and distribution rules for traditional and Roth IRA Accounts

• Defined benefit and defined contribution plans

• CASH ACCOUNTS, FEE-BASED ACCOUNTS, AND MARGIN ACCOUNTS

• Forms for a margin account

• Calculate initial deposit requirements

• Define money laundering

• Requirement for an AML officer under the BSA

• Know your customer rule

• Investment recommendation

• General rules for communication with the public

• Cold call rules of the TCPA of 1991

• Identify the expectations under Regulation S-P

• What records are kept for the life of the firm

• What records are kept for the life of the firm

• Define insider trading

• Types of market manipulation

• Restricted persons under Rule 5130

• Define improper use of customer assets

• Special concerns and expectations when serving senior clients

• Document handling rules

UNIT 4: Overview of the Regulatory Framework

• U4 Information

• Limitations on nonregistered personnel.

• Information on Form U-5.

• Continuing Education

• Define selling away

• Limitations and rules regarding political contribution

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