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SIE (Securities Industry Essentials) SIE (Securities Industry Essentials) Practice Test 2025

SIE (Securities Industry Essentials)Model questions
75marks
105min
10questions

This is the official SIE (Securities Industry Essentials) SIE (Securities Industry Essentials) question paper for 2025, as set in the Model questions examination. It carries 75 full marks and a time allowance of 105 minutes, across 10 questions. On Kekkei you can attempt this SIE (Securities Industry Essentials) past paper online with a timer, get instant AI feedback and step-by-step solutions, and track the topics where you lose marks — completely free. Whether you are revising for your SIE (Securities Industry Essentials) SIE (Securities Industry Essentials) exam or solving previous years' question papers, this 2025 paper is a great way to practise under real exam conditions.

LevelSIE (Securities Industry Essentials)
SubjectSIE (Securities Industry Essentials)
Year2025 BS
Exam sessionModel questions
Full marks75
Time allowed105 minutes
Questions10, all with step-by-step solutions
A

Securities Industry Essentials

Select the best answer.

10 questions·1 mark each
1Multiple choice1 mark

The primary market is best described as the market where:

  • a

    Previously issued securities are bought and sold between investors

  • b

    New securities are sold for the first time by the issuer to raise capital

  • c

    Derivative instruments such as options and futures are traded

  • d

    Foreign currencies are exchanged at spot rates

Correct answer: b

New securities are sold for the first time by the issuer to raise capital

The primary market is where new securities are issued and sold for the first time (e.g., IPOs, new bond issues).

capital-markets
2Multiple choice1 mark

A corporate bond with a coupon rate of 5% and par value of $1,000 pays semiannual interest. Each coupon payment is:

  • a

    $20

  • b

    $25

  • c

    $50

  • d

    $100

Correct answer: b

$25

Semiannual coupon = (0.05 x 1,000)/2=1,000) / 2 = 25.

securities-products
3Multiple choice1 mark

A customer places a limit order to buy 100 shares of XYZ at $50. This order will be executed:

  • a

    Only at exactly $50 per share

  • b

    At $50 per share or lower

  • c

    At $50 per share or higher

  • d

    At the next available market price

Correct answer: b

At $50 per share or lower

A buy limit order sets a maximum price. It executes at the limit price or lower (better for the buyer).

trading
4Multiple choice1 mark

Regulation T sets the initial margin requirement for equity securities purchased on margin at:

  • a

    25%

  • b

    50%

  • c

    70%

  • d

    100%

Correct answer: b

50%

Federal Reserve Regulation T sets the initial margin requirement at 50% for equity securities.

customer-accounts
5Multiple choice1 mark

FINRA (Financial Industry Regulatory Authority) is best described as:

  • a

    A government agency that insures bank deposits

  • b

    A self-regulatory organization that oversees broker-dealers

  • c

    A federal court that adjudicates securities fraud cases

  • d

    An exchange where stocks are listed and traded

Correct answer: b

A self-regulatory organization that oversees broker-dealers

FINRA is a self-regulatory organization (SRO) authorized by Congress to regulate broker-dealer firms and registered representatives.

regulatory-framework
6Multiple choice1 mark

Which of the following activities constitutes insider trading under SEC rules?

  • a

    Buying stock based on publicly available analyst reports

  • b

    Trading based on material, non-public information obtained through a corporate position

  • c

    Selling stock after a public earnings announcement

  • d

    Purchasing shares in an index fund

Correct answer: b

Trading based on material, non-public information obtained through a corporate position

Insider trading is buying or selling a security based on material, non-public information (MNPI) in breach of a fiduciary duty. It violates Section 10(b) and Rule 10b-5.

prohibited-practices
7Multiple choice1 mark

A mutual fund with NAV of 25.00andPOPof25.00 and POP of 26.50 has a sales load of:

  • a

    4.00%4.00\%

  • b

    5.66%5.66\%

  • c

    6.00%6.00\%

  • d

    8.50%8.50\%

Correct answer: b

5.66%5.66\%

Sales load = (POP - NAV) / POP x 100 = 1.50/1.50 / 26.50 x 100 = 5.66%.

securities-products
8Multiple choice1 mark

The Federal Reserve's most commonly used tool for implementing monetary policy is:

  • a

    Changing reserve requirements for banks

  • b

    Open market operations (buying and selling government securities)

  • c

    Setting the federal corporate tax rate

  • d

    Regulating the stock exchanges

Correct answer: b

Open market operations (buying and selling government securities)

Open market operations are the Fed's primary tool for influencing the federal funds rate and controlling the money supply.

capital-markets
9Multiple choice1 mark

Under SIPC coverage, each customer account is protected up to:

  • a

    $100,000 in cash and securities combined

  • b

    $250,000 in cash only

  • c

    500,000intotal,includingupto500,000 in total, including up to 250,000 in cash

  • d

    $1,000,000 in securities with no cash protection

Correct answer: c

500,000intotal,includingupto500,000 in total, including up to 250,000 in cash

SIPC protects up to 500,000total(securitiesandcash),withasub−limitof500,000 total (securities and cash), with a sub-limit of 250,000 for cash claims.

customer-accounts
10Multiple choice1 mark

Under the Bank Secrecy Act (BSA), a Currency Transaction Report (CTR) must be filed for cash transactions exceeding:

  • a

    $3,000

  • b

    $5,000

  • c

    $10,000

  • d

    $25,000

Correct answer: c

$10,000

Under the BSA, financial institutions must file a CTR for any cash transaction exceeding $10,000 in a single business day.

regulatory-framework

Frequently asked questions

Where can I find the SIE (Securities Industry Essentials) SIE (Securities Industry Essentials) question paper 2025?
The full SIE (Securities Industry Essentials) SIE (Securities Industry Essentials) 2025 (Model questions) question paper is available free on Kekkei. You can read every question online and attempt the paper under timed exam conditions.
Does the SIE (Securities Industry Essentials) 2025 paper come with solutions?
Yes. Every question on this SIE (Securities Industry Essentials) past paper includes a step-by-step solution, plus instant AI feedback when you attempt it on Kekkei.
How many marks is the SIE (Securities Industry Essentials) SIE (Securities Industry Essentials) 2025 paper?
The SIE (Securities Industry Essentials) SIE (Securities Industry Essentials) 2025 paper carries 75 full marks and is meant to be completed in 105 minutes, across 10 questions.
Is practising this SIE (Securities Industry Essentials) past paper free?
Yes — reading and attempting this SIE (Securities Industry Essentials) past paper on Kekkei is completely free.