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SIE Exam Quiz & Practice Questions

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Looking for the official training, not practice questions? finra.org — Securities Industry Essentials (SIE) Exam ↗

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Built for exactly this kind of question.

SIE questions test broad securities-industry vocabulary and rules across products, markets, and regulation, where the wrong answers are often closely related terms designed to trip you up. Cambo reads the exact question and explains why the correct term or rule applies, not just which option to pick.

Test yourself with real practice questions.

Which of the following BEST describes a bond's "coupon rate"?

  1. AThe bond's current market price
  2. BThe fixed annual interest rate the issuer pays to the bondholder
  3. CThe bond's yield to maturity
  4. DThe bond's credit rating
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Answer
BThe fixed annual interest rate the issuer pays to the bondholder
The fixed annual interest rate the issuer pays — the coupon rate is set at issuance and determines the periodic interest payments, regardless of the bond's later market price.

An investor buys a call option. What does this give the investor?

  1. AThe obligation to sell the underlying security at the strike price
  2. BThe right, but not the obligation, to buy the underlying security at the strike price
  3. CThe right to receive dividends from the underlying security
  4. DThe obligation to buy the underlying security at the strike price
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Answer
BThe right, but not the obligation, to buy the underlying security at the strike price
The right, but not the obligation, to buy the underlying security at the strike price — that's the defining feature of a call option, as opposed to an obligation, which applies to the option's seller.

Which regulatory body is primarily responsible for writing and enforcing rules governing broker-dealers in the United States?

  1. AThe Federal Reserve
  2. BFINRA
  3. CThe FDIC
  4. DThe Department of the Treasury
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Answer
BFINRA
FINRA (the Financial Industry Regulatory Authority) — it's the self-regulatory organization that oversees broker-dealers and registered representatives, subject to SEC oversight.

A mutual fund that invests primarily in short-term, high-quality debt instruments to maintain a stable share price is best classified as which type of fund?

  1. AA growth fund
  2. BA money market fund
  3. CA sector fund
  4. DA balanced fund
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Answer
BA money market fund
A money market fund — it invests in short-term, high-quality debt to preserve principal and maintain a stable net asset value, unlike growth, sector, or balanced funds.

Which account type allows a married couple to jointly own securities with automatic right of survivorship, meaning a deceased owner's share passes directly to the surviving owner?

  1. ATenants in Common (TIC)
  2. BJoint Tenants with Rights of Survivorship (JTWROS)
  3. CAn individual account
  4. DA custodial account (UTMA)
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Answer
BJoint Tenants with Rights of Survivorship (JTWROS)
Joint Tenants with Rights of Survivorship (JTWROS) — ownership passes automatically to the surviving joint owner, unlike Tenants in Common, where a deceased owner's share goes to their estate.

What is the primary purpose of the Securities Investor Protection Corporation (SIPC)?

  1. ATo guarantee against investment losses from market declines
  2. BTo insure customer accounts against brokerage firm failure, up to certain limits
  3. CTo set interest rates for savings accounts
  4. DTo regulate the stock exchanges directly
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Answer
BTo insure customer accounts against brokerage firm failure, up to certain limits
To insure customer accounts against brokerage firm failure — SIPC protects against the loss of cash and securities if a brokerage fails, not against ordinary market losses.
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Questions, answered.

How many questions are on the SIE exam?

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75 scored questions plus 5 unscored pretest questions, for 80 total, in 1 hour 45 minutes.

What score do I need to pass the SIE?

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70%, meaning at least 53 of the 75 scored questions correct.

Do I need to be sponsored by a firm to take the SIE?

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No — unlike most FINRA exams, the SIE can be taken by anyone 18 or older without being associated with or sponsored by a member firm, which is why it's accessible to students and career changers.

Is Cambo affiliated with FINRA?

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No. Cambo is an independent study tool and isn't produced, endorsed, or affiliated with the Financial Industry Regulatory Authority (FINRA).

How long is my SIE score valid?

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Four years from the date you pass — you must register with a FINRA member firm and pass a relevant top-off exam, such as the Series 7 or Series 63, within that window to become fully registered.

How many times can I retake the SIE?

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After your first or second failed attempt, you must wait 30 days; after a third or later failed attempt, the waiting period extends to 180 days.

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