[Q57-Q81] FINRA SIE Practice Verified Answers – Pass Your Exams For Sure! [2025]

NO.57 Shares in a private investment in public equity (PIPE) offering are priced:

At the current market value per share.

Below the current market value per share.

Above the current market value per share.

At the public offering price (POP) as determined by the underwriters.

NO.58 At a prospecting event, a registered representative (RR) provides cards for attendees to write down their contact information if they want to have a follow-up meeting with her. Which of the following actions should the RR take in this situation to comply with telemarketing rules?

Obtain the broker-dealer’s approval before making a call

Limit contact with prospects to between 9 a.m. and 9 p.m.

Contact the prospects at will since they provided express written consent

Prior to contacting the prospects, check all of the names on the cards to make sure they are not on the National Do Not Call Registry

NO.59 Which of the following characteristics is true of open-end mutual fund shares?

They terminate and dissolve on an established date.

Their price is calculated intra-day based on the changing market value of the fund.

They are purchased by investors in the secondary market.

They are purchased by investors directly from the fund or through a broker-dealer offering the fund.

NO.60 A registered representative (RR) at a member firm is the subject of a statutory disqualification. Which of the following statements is true?

The RR is prohibited from soliciting business but is permitted to accept unsolicited orders.

The RR is prohibited from any association or employment with a member firm unless he obtains a waiver.

The RR is prohibited from employment by a member firm in any registered capacity but is permitted to be employed in an unregistered capacity.

A statutory disqualification, although reportable to CRD, does not affect employment in the securities industry.

NO.61 Under SEC Regulation A, which of the following market participants, if deemed to be a bad actor, will disqualify the offering from reliance on this registration exemption?

Custodian

Underwriter

Transfer agent

Clearing corporation

NO.62 An associated person at a member firm receives a complaint from a customer involving allegations of forgery.
Once the complaint is received, which of the following actions is required?

The member firm must report the event promptly to FINRA.

The member firm is not required to report the event to FINRA but must maintain a file of the complaint for four years.

The member firm must complete arbitration to resolve the complaint with the customer before filing a report with FINRA.

The member firm must have a principal review the complaint and determine if the forgery occurred before filing a report with FINRA.

NO.63 A customer purchases $3,000 of XYZ, which settles today in a margin account. The customer has no other positions or balances. According to initial margin requirements, what is the amount of the required deposit?

$1,500

$2,000

$2,500

$3,000

NO.64 A market maker quotes the market on an NMS equity security as 39.05 – 39.15 [5×10]. Which of the following orders is the market maker required to fill?

A sell stop order for 500 shares at $39.00

A sell order for 300 shares at $39.05

A buy order for 1,000 shares at $39.10

A buy order for 2,000 shares at $39.15

NO.65 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?

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

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

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

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

NO.66 Under the Investment Company Act of 1940, which of the following products are considered redeemable securities?

Short-term paper

Master limited partnerships

Shares issued by a closed-end investment company

Shares of unit investment trusts (UITs) purchased through a public offering

NO.67 A hypothecation agreement gives the broker-dealer the right to engage in which of the following activities?

Sharing customers’ nonpublic personal information with nonaffiliated third parties

Entering trades in a customer’s account without prior authorization from the customer

Selling a customer’s securities when the customer has failed to pay for trades in a cash account

Using securities that a customer has bought on margin as collateral to obtain a loan from a bank

NO.68 A broker-dealer (BD) is underwriting an initial public offering (IPO). According to industry rules, which of the following customers is eligible to participate in the IPO?

An unregistered sales assistant employed by the BD

The BD’s branch office manager’s unemployed spouse

A customer of the BD who is the president of a local bank

The chief financial officer of a fast-food chain, whose brother is a registered representative employed by the BD

NO.69 Which of the following terms describes an offer to purchase some or all shareholders’ shares in a corporation, usually at a premium to the market price?

Tender

Stock split

Redemption

Class action

NO.70 Offering 403(b) tax-sheltered annuity accounts to which of the following groups is permissible?

Volunteer workers

Small business owners

Active duty military personnel

Employees of a nonprofit hospital

NO.71 Which of the following is not a pass-through entity for tax purposes?

A C corporation

An S corporation

A limited liability company (LLC)

A real estate investment trust (REIT)

NO.72 A registered representative (RR) receives a mutual fund order from a customer at 4:10 p.m. ET. Which of the following statements is true regarding this order?

It must be executed at the next closing price.

It must be executed at the next day’s opening price.

It must be accepted as an “as/of” trade for today’s price.

It is not permitted to be accepted as it was received after the market close.

NO.73 Which of the following statements is true of an index exchange-traded fund (ETF)?

It has a high portfolio turnover ratio.

It is priced once daily, generally at the market close.

It offers an opportunity to outperform the index it tracks.

Passive ETFs will typically have lower fees than those associated with actively managed ETFs.

NO.74 A municipal securities dealer makes a political contribution of $990 to a local mayoral candidate. At the end of the quarter, to whom, if anyone, must the dealer report the contribution?

MSRB

SEC

No disclosure required as the amount is below the reporting threshold

FINRA

NO.75 Which of the following disclosures is a municipal securities dealer required to provide its customers once every calendar year?

The firm’s address

The firm’s financial standing

FINRA violations of all registered representatives

The location and availability of the MSRB investor brochure

NO.76 Which of the following responses describes a FINRA member?

An associated person of a registered brokerage firm

A natural person who is employed by a broker-dealer (BD)

A registered representative with a national securities exchange

A BD regulated by a national securities association

NO.77 Which of the following responses accurately describes a secondary market transaction?

Buying open-end mutual fund shares

Buying securities directly from the issuing company

Buying securities on a registered securities exchange

Buying securities in a private placement from a broker-dealer

NO.78 A registered representative wants to open an account for himself at a different financial institution. Under FINRA rules, which of the following accounts requires prior written consent from his employing broker- dealer?

A 529 savings plan account established for his grandchild

Mutual fund accounts held directly with the fund company

Variable contracts registered under the Investment Company Act

An investment advisory account in which securities transactions are effected

NO.79 Which of the following statements is true of the writer of a listed equity call option?

They have the right to sell stock at a fixed strike price.

They have the right to buy stock at a fixed strike price.

They have the obligation to sell stock at a fixed strike price.

They have the obligation to buy stock at a fixed strike price.

NO.80 When the index level and strike price of a listed index option are the same, the option is:

In the money.

At the money.

Out of the money.

Trading at intrinsic value only.

NO.81 A customer will be out of the country for the next two months on business and asks his firm to hold his mail until he returns. Which of the following statements is true regarding this request?

The firm is prohibited from holding the customer’s mail under FINRA rules due to the personal information contained.

The firm must receive written instructions from the customer that include the time period for the requested mail hold.

The firm is permitted to hold the mail as long as the registered representative (RR) complies with the customer’s oral instructions.

At the discretion of the RR, the firm is permitted to hold the customer’s mail provided it takes reasonable actions to ensure no tampering occurs with this mail.

[Dec 26, 2022] Series-7 Exam Dumps 100% Same Q&A In Your Real Exam [Q142-Q162]

Leave a Reply Cancel reply

Related Posts

Leave a Reply Cancel reply