SIE Exam Questions & Answers 2026 (11–20)

Question 1

Which of the following does the phrase "Blue Chip" relate to?

TheoryPractice · Accepted Answer

stocks that consistently produce income and modest growth over long periods of time. When the phrase blue chip stocks is used, consider the well-known, long-standing businesses that frequently outperform the market. These are nearly all listed on the NYSE.

Question 2

Which of the following is an example of a put option?

TheoryPractice · Accepted Answer

Mark has a contract with a right to sell Stock XYZ at $15 per share if the stock price goes below this value.. A put option is the right, but not an obligation, to sell stock at a set exercise price.

This is usually exercised if the market prices falls below the exercise price in the options contract.

The right to buy stock at a set price is a call option.

And any special instructions like do not buy or sell until the price reaches a certain level are examples of stop and limit orders, which is unrelated to options.

Question 3

A corporation has issued a single bond having successive maturity dates set from 2020 through 2030. This is known as what type of bond?

TheoryPractice · Accepted Answer

Serial. Serial maturity bonds are all issued at one time and mature in successive years. Note that there is no "series" maturity type.

Question 4

All of the following are true about hedge funds EXCEPT:

TheoryPractice · Accepted Answer

They are regulated by the Investment Company Act of 1940. Hedge funds are not subject to the Investment Company Act of 1940 since they are exempt from SEC registration. Hedge funds are exempt since they are issued as private placements. However, advisers of hedge funds must be registered with the SEC according to the Investment Advisers Act of 1940.

Question 5

Money market securities are not considered as which of the following?

TheoryPractice · Accepted Answer

ADRs. ADRs indicate ownership (equity) in foreign stocks while 'money market' consists of short term debt instruments only, hence, ADRs are not debt.

Question 6

Which of the below best defines a short call?

TheoryPractice · Accepted Answer

An option contract where the investor has a contractual obligation, for the duration of the contract, to deliver the underlying instrument at the strike price upon exercise.. Short call refers to writing a call, which obliges the investor to sell 100 shares of the stock at the exercise price if it is executed.

Question 7

XYZ Corporation is guaranteeing a debt issue for the IHG Company. Regarding these bonds, which of the following is TRUE?

TheoryPractice · Accepted Answer

These bonds are unsecured, with the value of the guarantee being as good as the strength of XYZ.. These are guaranteed bonds where the value of the guarantee is only as good as the financial strength (good faith and credit) of the company making the guarantee—in this case, XYZ Corporation. Because these bonds are backed by the good faith and credit of XYZ and not by any tangible asset, they are unsecured debt instruments. Always remember that even though the word "guaranteed" is used to describe such issues, the bonds are unsecured debt.

Question 8

Which of these is a qualification of an accredited hedge fund investor?

TheoryPractice · Accepted Answer

a net worth of over a million dollars. In addition to net worth, an accredited investor must have significant knowledge of investing, and a set annual income determined by the country of residence.

Question 9

The _____ is how much an investor is willing to pay for a share of stock.

TheoryPractice · Accepted Answer

Bid. The bid price shown on the quote states how much an investor will pay to purchase that stock order through the brokerage.

Question 10

FDMs are required to prepare and maintain ledgers or other similar records that summarize each transaction affecting which of the following?

I. Member’s capital accounts

II. Member’s income

III. Member’s liability

IV. Member’s assets

TheoryPractice · Accepted Answer

All of the above. FDMs are required to prepare and maintain ledgers or other similar records that summarize each transaction affecting the Member’s assets, liability, income, expense and capital accounts and include appropriate references to supporting documents.

SIE Exam Questions & Answers 2026 (11–20)

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