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OpenExam.SIE · FOUNDATION PRACTICE

Mixed skills

Name: __________________________Date: __________________

10 original practice questions · Untimed · Follow each question’s response instructions

1. A standard stop order reaches its trigger and becomes a market order in a fast-moving market. What is the most appropriate response?

A. Guarantee a fill exactly at the stop price.B. Assume a triggered stop remains an untriggered instruction forever.C. Treat the stop price as a deposit-insurance amount.D. Recognize that the final execution price can differ from the stop price.
sie-q-133

2. A bond issuer's ability to pay interest and principal deteriorates. A reviewer writes: "A change in repayment capacity is not a share-count corporate action." Which proposal is explicitly described by that critique?

A. Identify increased credit or default risk.B. Assume the word bond guarantees repayment regardless of the issuer.C. Treat an unchanged coupon rate as proof of unchanged credit quality.D. Classify the change solely as a stock-split adjustment.
sie-q-059

3. A trainee asks which federal agency is associated with securities-market oversight rather than insuring bank deposits. What is the most appropriate response?

A. Identify the Securities and Exchange Commission.B. Assign federal securities oversight to the FDIC deposit-insurance function.C. Describe the SEC as guaranteeing market gains.D. Treat a private issuer's board as the federal securities regulator.
sie-q-017

4. An investor needs funds for a scheduled near-term expense but considers a highly volatile investment. A reviewer writes: "A historical average is not a guaranteed return over a particular short period." Which proposal is explicitly described by that critique?

A. Guarantee recovery from any decline before the payment date.B. Assume a long-run historical average guarantees the near-term sale value.C. Treat a fixed spending date as irrelevant to investment risk.D. Recognize the mismatch between a short horizon and potential value fluctuations.
sie-q-111

5. A registered person starts a paid outside business without giving the required prior written notice to the firm. A reviewer writes: "Timing outside working hours does not itself remove the notice requirement." Which proposal is explicitly described by that critique?

A. Treat a verbal comment to a colleague as formal written notice.B. Assume no notice is needed whenever the new business is not a securities issuer.C. Assume activities outside working hours are automatically exempt.D. Provide the required prior written notice under the applicable outside-business rule.
sie-q-191

6. A covered call writer receives an exercise assignment on a standard equity call. A reviewer writes: "The writer does not have the holder's discretion to disregard an assigned obligation." Which proposal is explicitly described by that critique?

A. Describe the writer as having only the call buyer's purchasing right.B. Treat assignment as an optional choice for the writer.C. Assume the writer can keep the premium and ignore the contract.D. Recognize the obligation to deliver the underlying under the contract.
sie-q-075

7. A trainee treats a short practice-bank score as proof of an official scaled SIE passing result. A reviewer writes: "A raw practice percentage is not automatically an official scaled score." Which proposal is explicitly described by that critique?

A. Treat untimed study accuracy as a registration credential.B. Convert every practice percentage directly into an official scaled score.C. Keep practice accuracy separate from an official equated examination result.D. Assume every practice set has the same calibrated difficulty as FINRA's exam.
sie-q-199

8. An investor buys a conventional corporate bond rather than the issuer's common shares. Select every proposed response that fails to apply the control needed in this case.

Select all that apply.

A. Identify the bondholder as a creditor under the debt terms.B. Describe bond principal as a discretionary common dividend.C. Treat the bond as ownership of a specific slice of all company property.D. Grant the bondholder all common-stock voting rights automatically.
sie-q-052

9. A common shareholder budgets future expenses as if the issuer must declare the same dividend forever. A reviewer writes: "A prior declaration does not itself require identical future declarations indefinitely." Which proposal is explicitly described by that critique?

A. Call a common dividend the same obligation as scheduled bond interest.B. Assume every profitable company must distribute all earnings.C. Treat last quarter's dividend as an enforceable perpetual payment promise.D. Explain that common dividends are not guaranteed.
sie-q-043

10. A customer will buy a stock only at the stated limit price or lower. A reviewer writes: "Earlier submission does not authorize execution above the buyer's limit." Which proposal is explicitly described by that critique?

A. Guarantee the order will execute even if the market stays above the limit.B. Treat the limit as the minimum price the buyer must pay.C. Permit execution above the limit because the order was submitted earlier.D. Identify a buy limit order.
sie-q-127
OpenExam.ANSWER KEY · KEEP SEPARATE

Answers & reasoning

1. Recognize that the final execution price can differ from the stop price. · Choice D

Identify the controlling condition: Stop orders. A standard stop is a trigger for a market order, not a guaranteed execution price. Apply it: Recognize that the final execution price can differ from the stop price. Compare the alternative "Guarantee a fill exactly at the stop price.": A market order created by the trigger can execute away from the trigger price.

sie-q-133

2. Classify the change solely as a stock-split adjustment. · Choice D

Read the reviewer's specific criticism: A change in repayment capacity is not a share-count corporate action. The matching proposal is: Classify the change solely as a stock-split adjustment. The compliant response instead is: Identify increased credit or default risk.

sie-q-059

3. Identify the Securities and Exchange Commission. · Choice A

Identify the controlling condition: SEC role. The SEC is a federal securities regulator; regulatory oversight is different from investment-return guarantees. Apply it: Identify the Securities and Exchange Commission. Compare the alternative "Assign federal securities oversight to the FDIC deposit-insurance function.": Deposit insurance and federal securities regulation are different functions.

sie-q-017

4. Assume a long-run historical average guarantees the near-term sale value. · Choice B

Read the reviewer's specific criticism: A historical average is not a guaranteed return over a particular short period. The matching proposal is: Assume a long-run historical average guarantees the near-term sale value. The compliant response instead is: Recognize the mismatch between a short horizon and potential value fluctuations.

sie-q-111

5. Assume activities outside working hours are automatically exempt. · Choice C

Read the reviewer's specific criticism: Timing outside working hours does not itself remove the notice requirement. The matching proposal is: Assume activities outside working hours are automatically exempt. The compliant response instead is: Provide the required prior written notice under the applicable outside-business rule.

sie-q-191

6. Treat assignment as an optional choice for the writer. · Choice B

Read the reviewer's specific criticism: The writer does not have the holder's discretion to disregard an assigned obligation. The matching proposal is: Treat assignment as an optional choice for the writer. The compliant response instead is: Recognize the obligation to deliver the underlying under the contract.

sie-q-075

7. Convert every practice percentage directly into an official scaled score. · Choice B

Read the reviewer's specific criticism: A raw practice percentage is not automatically an official scaled score. The matching proposal is: Convert every practice percentage directly into an official scaled score. The compliant response instead is: Keep practice accuracy separate from an official equated examination result.

sie-q-199

8. Grant the bondholder all common-stock voting rights automatically.; Describe bond principal as a discretionary common dividend.; Treat the bond as ownership of a specific slice of all company property.

Identify the controlling condition: Debt versus equity. Grant the bondholder all common-stock voting rights automatically. Owning debt does not automatically convey common-share voting rights. Describe bond principal as a discretionary common dividend. Principal repayment and a discretionary equity distribution are different obligations. Treat the bond as ownership of a specific slice of all company property. A general debt claim is not direct ownership of each corporate asset. Do not select the compliant response: Identify the bondholder as a creditor under the debt terms.

sie-q-052

9. Treat last quarter's dividend as an enforceable perpetual payment promise. · Choice C

Read the reviewer's specific criticism: A prior declaration does not itself require identical future declarations indefinitely. The matching proposal is: Treat last quarter's dividend as an enforceable perpetual payment promise. The compliant response instead is: Explain that common dividends are not guaranteed.

sie-q-043

10. Permit execution above the limit because the order was submitted earlier. · Choice C

Read the reviewer's specific criticism: Earlier submission does not authorize execution above the buyer's limit. The matching proposal is: Permit execution above the limit because the order was submitted earlier. The compliant response instead is: Identify a buy limit order.

sie-q-127

Original source-grounded practice. Content and reasoning checks are separate from professional educator review, which remains pending. Not an official exam paper.

OpenExam · Independent SIE practiceFoundation pilot · No official score predictionSources & content notes