Practice SIE Exam Online

Question 1

A registered representative must complete which of the following activities when entering a discretionary trade?

A : Only exercise discretion over market orders

B : Indicate that discretion was exercised on the order ticket to be identified for supervisory review

C : Obtain authorization from the customer before each discretionary order is entered

D : Receive instructions from the customer as to the price at which to buy or sell a security

Answer: B

Question 2

A real estate investment trust (REIT) is required to invest what percentage of total assets in real-estate-related assets to maintain favorable tax treatment?

A : At least 50% of total assets

B : At least 75% of total assets

C : At least 90% of total assets

D : 100% of assets

Answer: B

Question 3

A customer buys 100 ABC at $50 and at the same time sells an ABC April 50 call at $8. At expiration, ABC must be at what market price for the customer to break even?

A : $42

B : $44

C : $50

D : $58

Answer: A

Question 4

A registered representative (RR) at a member firm is the subject of a statutory disqualification. Which of the following statements is true?

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

B :

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

C :

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

Answer: B

Question 5

Which of the following statements best describes an American Depositary Receipt (ADR)?

A : ADRs trade like U.S. issues and are quoted in U.S. dollars.

B : ADRs trade like U.S. issues and are quoted in foreign currency.

C : ADRs represent shares of a U.S. security held in foreign commercial banks.

D : ADRs represent shares of a foreign security held in foreign commercial banks.

Answer: A

Name:	Securities Industry Essentials (SIE)
Exam Code:	SIE
Certification:	FINRA Introductory-level
Vendor:	FINRA
Total Questions:	166
Last Updated:	Mar 13, 2026

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