Free SIE Practice Questions
Original questions with explanations
These original SIE practice questions are educational examples designed to exercise reasoning. They are not recalled exam items and do not imply access to live or confidential test content.
Question 1
Which market is where previously issued securities trade?
- A. The secondary market
- B. The primary offering market
- C. The underwriting syndicate only
- D. The issuer’s transfer ledger
Answer and explanation
A. The secondary market Secondary-market transactions involve securities already issued.
Question 2
Which bond generally has the greatest interest-rate sensitivity?
- A. A floating-rate note with immediate reset
- B. Cash
- C. A long-maturity, low-coupon bond
- D. A short-maturity, high-coupon bond
Answer and explanation
C. A long-maturity, low-coupon bond Longer duration and lower coupons increase sensitivity to rate changes.
Question 3
What is diversification intended to reduce?
- A. Issuer-specific or unsystematic risk
- B. All market risk
- C. Inflation automatically
- D. Every possible loss
Answer and explanation
A. Issuer-specific or unsystematic risk Diversification reduces concentrated company-specific risk but cannot eliminate systematic risk.
Question 4
Which statement about the SIE is correct?
- A. It requires firm sponsorship
- B. It never expires under any rule
- C. Passing it alone does not permit a person to conduct registered securities business
- D. It replaces every top-off exam
Answer and explanation
C. Passing it alone does not permit a person to conduct registered securities business SIE is a co-requisite for representative registration, not registration by itself.
Question 5
What should control SIE preparation?
- A. Social-media tips
- B. A recalled exam
- C. A Series 7 outline alone
- D. FINRA’s current content outline and published rules
Answer and explanation
D. FINRA’s current content outline and published rules FINRA’s outline defines the current examination scope.
How to Review Your Results
For every missed item, name the tested concept, explain why the correct option is best, and identify the clue that rules out each distractor. Then review the corresponding official content domain.