Free SIE Practice Test

Heads up: these are full-difficulty, exam-level questions — harder than most free SIE questions online, on purpose. A low score before studying is normal. Answer all 8 to see your score and a full explanation for each.

Question 1 of 8 · Products & Risks

A corporation is liquidated. Rank these claimants from FIRST paid to LAST: subordinated debentures, secured mortgage bonds, general (unsecured) creditors, preferred stock.

Question 2 of 8 · Products & Risks

Rates rise 1% across the curve. An investor holds a 30-year zero-coupon Treasury and a 30-year 6% coupon Treasury of equal face value. Which loses more market value, and why?

Question 3 of 8 · Products & Risks

An investor buys 1 XYZ call, strike 50, for a premium of 4. At expiration XYZ trades at 52. Ignoring commissions, the investor's result is:

Question 4 of 8 · Trading & Accounts

Under the current T+1 settlement cycle, to be a holder of record entitled to a cash dividend, an investor must purchase the stock NO LATER than:

Question 5 of 8 · Trading & Accounts

A customer has $600,000 in securities and $300,000 in cash at a broker-dealer that fails. Maximum SIPC protection is:

Question 6 of 8 · Regulatory Framework

A company files a registration statement to sell shares to the public in an IPO. Which body's rules primarily govern that registration?

Question 7 of 8 · Prohibited Activities

A firm's research desk will publish a 'buy' upgrade tomorrow morning. This afternoon, the firm's proprietary trading desk buys the stock ahead of the report. This is:

Question 8 of 8 · Capital Markets

An investor expects interest rates to FALL sharply over the next year and wants maximum price appreciation from bonds. She should buy: