In which market does the issuer receive the proceeds from the sale of its securities?Investor.gov (SEC) glossary, Primary Market. Outline: FINRA SIE Content Outline (2025), Section 1.2, Market Structure (the primary market).
Under Regulation D, a natural person is an accredited investor with individual income above what amount in each of the two most recent years?SEC rules under the Securities Act of 1933, 17 CFR Part 230, 17 CFR 230.501(a)(6). Outline: FINRA SIE Content Outline (2025), Section 1.1, Regulatory Entities, Agencies and Market Participants (accredited investors).
What are "blue sky" laws?Investor.gov (SEC) glossary, Blue Sky Laws. Outline: FINRA SIE Content Outline (2025), Section 1.4, Offerings (blue-sky laws).
What is the federal funds rate?Federal Reserve Board, Open Market Operations. Outline: FINRA SIE Content Outline (2025), Section 1.3, Economic Factors (different rates).
Which federal law is often called the "truth in securities" law?Investor.gov (SEC), The Laws That Govern the Securities Industry, Securities Act of 1933. Outline: FINRA SIE Content Outline (2025), Section 1.4, Offerings (regulatory filing requirements).
Show all 51 questions (46 more)
Knowledge of capital markets, continued
Which law created the Securities and Exchange Commission?Investor.gov (SEC), The Laws That Govern the Securities Industry, Securities Exchange Act of 1934. Outline: FINRA SIE Content Outline (2025), Section 1.1, Regulatory Entities, Agencies and Market Participants (the SEC).
Which loss is outside the protection that SIPC gives the customers of a member brokerage firm?SIPC, What SIPC Protects. Outline: FINRA SIE Content Outline (2025), Section 1.1, Regulatory Entities, Agencies and Market Participants (SIPC).
Which market participant works for the issuer to record changes of ownership and keep the security holder records?Investor.gov (SEC) glossary, Transfer Agents. Outline: FINRA SIE Content Outline (2025), Section 1.1, Regulatory Entities, Agencies and Market Participants (transfer agents).
Products and their risks 22
A listed stock option is quoted at a premium of $3.10. What does one contract cost, before commissions?SEC Investor Bulletin, An Introduction to Options, Basic Options Terminology. Outline: FINRA SIE Content Outline (2025), Section 2.1.3, Options (premium).
A put option has a strike price of 40. At which price of the underlying stock is the put in-the-money?SEC Investor Bulletin, An Introduction to Options, Basic Options Terminology. Outline: FINRA SIE Content Outline (2025), Section 2.1.3, Options (in-the-money, out-of-the-money).
An investor must sell an older bond after newer bonds have come out with a higher rate of interest. What is the likely result?Investor.gov (SEC), What is Risk?, Interest Rate Risk. Outline: FINRA SIE Content Outline (2025), Section 2.2, Investment Risks (interest rate risk).
Compared with common stockholders, what is usually true of preferred stockholders?Investor.gov (SEC), Stocks. Outline: FINRA SIE Content Outline (2025), Section 2.1.1, Equity Securities (common and preferred stock).
For what terms does the Treasury sell Treasury bills?TreasuryDirect, Treasury Bills. Outline: FINRA SIE Content Outline (2025), Section 2.1.2, Debt Instruments (Treasury securities).
How do investors buy and sell shares of an ETF?Investor.gov (SEC) glossary, Exchange-Traded Fund. Outline: FINRA SIE Content Outline (2025), Section 2.1.9, Exchange-traded Products (exchange-traded funds).
How does the holder of a zero coupon bond earn a return?Investor.gov (SEC) glossary, Zero Coupon Bond. Outline: FINRA SIE Content Outline (2025), Section 2.1.2, Debt Instruments (coupon value and par value).
How is the net asset value of an investment company worked out?Investor.gov (SEC) glossary, Net Asset Value. Outline: FINRA SIE Content Outline (2025), Section 2.1.4, Packaged Products (net asset value).
In options trading, what is an assignment?SEC Investor Bulletin, An Introduction to Options, Basic Options Terminology. Outline: FINRA SIE Content Outline (2025), Section 2.1.3, Options (exercise and assignment).
On a mutual fund purchase, what is a breakpoint?Investor.gov (SEC) glossary, Breakpoint Discounts. Outline: FINRA SIE Content Outline (2025), Section 2.1.4, Packaged Products (breakpoints).
What are the two types of 529 plans?Investor.gov (SEC) glossary, 529 Plans. Outline: FINRA SIE Content Outline (2025), Section 2.1.5, Municipal Fund Securities (529 plans).
What backs a general obligation municipal bond?Investor.gov (SEC) glossary, General Obligation Bond. Outline: FINRA SIE Content Outline (2025), Section 2.1.2, Debt Instruments (municipal securities).
What do 12b-1 fees pay for?Investor.gov (SEC) glossary, 12b-1 Fees. Outline: FINRA SIE Content Outline (2025), Section 2.1.4, Packaged Products (costs and fees).
What does the buyer of a call option hold?SEC Investor Bulletin, An Introduction to Options, Basic Options Terminology. Outline: FINRA SIE Content Outline (2025), Section 2.1.3, Options (puts and calls).
What is an ABLE account for?Investor.gov (SEC), ABLE Accounts. Outline: FINRA SIE Content Outline (2025), Section 2.1.5, Municipal Fund Securities (ABLE accounts).
What makes a program a direct participation program under FINRA Rule 2310?FINRA Rule 2310, Direct Participation Programs, paragraph (a)(4). Outline: FINRA SIE Content Outline (2025), Section 2.1.6, Direct Participation Programs (pass-through tax treatment).
When does a surrender charge on a variable annuity apply?Investor.gov (SEC) glossary, Surrender Charge. Outline: FINRA SIE Content Outline (2025), Section 2.1.4, Packaged Products (surrender charges).
When is an issuer most likely to call a callable bond?Investor.gov (SEC) glossary, Callable or Redeemable Bonds. Outline: FINRA SIE Content Outline (2025), Section 2.1.2, Debt Instruments (callable features).
Which Moody's rating is the highest that still marks a bond as high-yield?Investor.gov (SEC) glossary, High-yield Bond. Outline: FINRA SIE Content Outline (2025), Section 2.1.2, Debt Instruments (ratings and rating agencies).
Which of these does a unit investment trust not have?Investor.gov (SEC) glossary, Unit Investment Trusts. Outline: FINRA SIE Content Outline (2025), Section 2.1.4, Packaged Products (unit investment trusts).
Which risk is the loss of purchasing power for an investor who receives a fixed rate of interest?Investor.gov (SEC), What is Risk?, Inflation Risk. Outline: FINRA SIE Content Outline (2025), Section 2.2, Investment Risks (inflationary or purchasing power risk).
Which statement describes the shares of a closed-end fund?Investor.gov (SEC) glossary, Closed-end Funds. Outline: FINRA SIE Content Outline (2025), Section 2.1.4, Packaged Products (closed-end funds).
Trading, customer accounts and prohibited activities 16
A broker trades heavily in a customer's account, without regard to the customer's goals, mainly to generate commissions. What is this practice called?Investor.gov (SEC) glossary, Churning. Outline: FINRA SIE Content Outline (2025), Section 3.3.1, Market Manipulation (excessive trading).
A customer buys a security in a cash account and sells it before paying for it. What may the broker be required to do?Investor.gov (SEC) glossary, Freeriding. Outline: FINRA SIE Content Outline (2025), Section 3.3.1, Market Manipulation (freeriding).
A firm reasonably believes a customer aged 70 is being financially exploited and places a temporary hold on a disbursement. When does the first hold expire under FINRA Rule 2165?FINRA Rule 2165, Financial Exploitation of Specified Adults, paragraph (b)(2). Outline: FINRA SIE Content Outline (2025), Section 3.3.3, Other Prohibited Activities (financial exploitation of seniors).
Above what amount must a financial institution report a transaction in currency?FinCEN, 31 CFR 1010.311. Outline: FINRA SIE Content Outline (2025), Section 3.2.3, Anti-money Laundering (Currency Transaction Report).
An investor buys a stock on its ex-dividend date. Who receives the next dividend?Investor.gov (SEC) glossary, Ex-Dividend Dates. Outline: FINRA SIE Content Outline (2025), Section 3.1.2, Investment Returns (dividend payment dates).
An investor owns 150 shares trading at $80. The company declares a two-for-one stock split. What does the investor own immediately after the split?Investor.gov (SEC) glossary, Stock Split. Outline: FINRA SIE Content Outline (2025), Section 3.1.4, Corporate Actions (impact of stock splits).
At what price can a buy limit order be executed?Investor.gov (SEC) glossary, Limit Orders. Outline: FINRA SIE Content Outline (2025), Section 3.1.1, Orders and Strategies (types of orders).
By when must a broker-dealer file a Suspicious Activity Report?FinCEN, 31 CFR 1023.320, paragraph (b)(3). Outline: FINRA SIE Content Outline (2025), Section 3.2.3, Anti-money Laundering (Suspicious Activity Report).
How often must a general securities member send an account statement to a customer whose account had a position, balance or activity?FINRA Rule 2231, Customer Account Statements, paragraph (a). Outline: FINRA SIE Content Outline (2025), Section 3.2.4, Books and Records and Privacy Requirements (confirmations and account statements).
In a pump and dump scheme, what do the fraudsters do once the stock price has risen?Investor.gov (SEC) glossary, Pump and Dump Schemes. Outline: FINRA SIE Content Outline (2025), Section 3.3.1, Market Manipulation (pump and dump).
Under a customer identification program, which item must a broker-dealer obtain from an individual before opening an account?FinCEN, 31 CFR 1023.220, paragraph (a)(2)(i). Outline: FINRA SIE Content Outline (2025), Section 3.2.3, Anti-money Laundering (AML compliance program).
Under FINRA Rule 3240, from which customer may a registered person borrow money, if the firm's procedures allow it?FINRA Rule 3240, Borrowing From or Lending to Customers, paragraph (a)(2). Outline: FINRA SIE Content Outline (2025), Section 3.3.3, Other Prohibited Activities (borrowing from customers).
Under Regulation T, how much of the purchase price of margin securities may an investor borrow?SEC Investor Bulletin, Understanding Margin Accounts, Know the Margin Rules. Outline: FINRA SIE Content Outline (2025), Section 3.2.1, Account Types and Characteristics (margin accounts).
Under SEC Rule 15c6-1, by when must most securities trades settle unless the parties expressly agree otherwise?SEC Rule 15c6-1, 17 CFR 240.15c6-1, paragraph (a). Outline: FINRA SIE Content Outline (2025), Section 3.1.3, Trade Settlement (settlement time frames).
What does a stop order become once the stop price is reached?Investor.gov (SEC) glossary, Stop Order. Outline: FINRA SIE Content Outline (2025), Section 3.1.1, Orders and Strategies (types of orders).
What makes a securities trade illegal insider trading?Investor.gov (SEC), Insider Trading. Outline: FINRA SIE Content Outline (2025), Section 3.3.2, Insider Trading (definition of insider trading).
Regulatory framework 5
For how long after a person leaves a member firm does BrokerCheck go on releasing that person's information on request?FINRA Rule 8312, FINRA BrokerCheck Disclosure, paragraph (a). Outline: FINRA SIE Content Outline (2025), Section 4.2.1, Employee Conduct (Form U4 and Form U5).
For how long are SIE exam results valid?FINRA, Securities Industry Essentials (SIE) Exam page, Overview. Outline: FINRA SIE Content Outline (2025), Section 4.1.1, Registration and Continuing Education (qualification requirements).
How often must a registered person complete the Regulatory Element of continuing education?FINRA Rule 1240, Continuing Education, paragraph (a)(1). Outline: FINRA SIE Content Outline (2025), Section 4.1.1, Registration and Continuing Education (Regulatory Element).
Under FINRA Rule 3220, what is the yearly limit on gifts to an employee of another firm when the gift relates to the business of that person's employer?FINRA Rule 3220, Influencing or Rewarding Employees of Others, paragraph (a). Outline: FINRA SIE Content Outline (2025), Section 4.2.2, Reportable Events (limits for gifts and gratuities).
What must a registered person do before taking paid work outside the member firm?FINRA Rule 3270, Outside Business Activities of Registered Persons. Outline: FINRA SIE Content Outline (2025), Section 4.2.2, Reportable Events (outside business activities).
How this list was compiled: Our own questions, written to the four sections of the Securities Industry Essentials (SIE) Exam Content Outline that FINRA publishes (https://www.finra.org/sites/default/files/2025-10/SIE_Content_Outline.pdf, read 2026-10-09): Section 1, knowledge of capital markets, 12 of 75 scored items (16%); Section 2, understanding products and their risks, 33 (44%); Section 3, understanding trading, customer accounts and prohibited activities, 23 (31%); Section 4, overview of the regulatory framework, 7 (9%). The bank holds 8, 22, 16 and 5. Every fact was read on 2026-10-09 in the public text the question names: FINRA rules on finra.org, SEC and FinCEN rules on ecfr.gov (17 CFR Parts 230 and 240, 31 CFR Parts 1010 and 1023), the SEC's Investor.gov glossary, pages and investor bulletins, TreasuryDirect, the Federal Reserve Board and SIPC. Licence: Questions, choices and explanations are original work of this site.
How it works
This SIE practice test asks 51 questions of our own on the four sections of FINRA's content outline. Unofficial: not affiliated with, endorsed by or sponsored by FINRA. Practice for an exam, not investment advice.
Read the full guide
Four sections, in FINRA's shares
FINRA's outline gives 75 scored questions: 12 on capital markets, 33 on products and their risks, 23 on trading, customer accounts and prohibited activities, and 7 on the regulatory framework. This bank holds 8, 22, 16 and 5, nearly the same shares.
A source on every answer
Each explanation names where its fact stands: an SEC or FinCEN rule on ecfr.gov, a FINRA rule, the SEC's Investor.gov pages, TreasuryDirect, the Federal Reserve Board or SIPC.
A timed run
Exam mode draws 40 questions with 56 minutes on the clock, the real pace of 75 in an hour and 45 minutes.
Learn the numbers the rules fix: one business day to settle, $10,000 for a currency report, 30 calendar days for a suspicious activity report.
Questions and answers
Is this the FINRA SIE practice test?
No. FINRA's SIE page links its own practice test and its free content outline. This page is a separate, free SIE practice test: our own questions, written to that outline, each with its source.
How many questions are on the SIE exam?
80 in one hour and 45 minutes: 75 scored questions and 5 unidentified pretest questions that do not count. Each has four answer choices, and there is no penalty for guessing.
What is the passing score for the SIE?
FINRA lists it as 70. The score is placed on a common scale by a statistical process called equating, so the standard is the same whichever set of questions a candidate receives.
Who can take the SIE exam?
Anyone aged 18 or older. FINRA says no firm association is needed, and results stay valid for four years. An SIE pass by itself does not qualify a person to do securities business.
How much does the SIE exam cost?
FINRA's SIE page lists the cost as $100. A qualification exam such as the Series 6 or the Series 7 is taken as well to register, and each has its own fee.