SIE Practice Test: Free FINRA Securities Industry Essentials Exam Questions (2026)
250 practice questions for FINRA's Securities Industry Essentials (SIE) exam, the first step into the securities business: you can take it at 18 with no firm behind you, and it pairs with the Series 7, 6, 57 or 79 to get registered. They follow FINRA's content outline, weighted the way the real exam is: Knowledge of Capital Markets (16%), Understanding Products and Their Risks (44%), Trading, Customer Accounts and Prohibited Activities (31%) and the Regulatory Framework (9%). The math is here too: current yield, tax-equivalent yield, option breakevens, sales charges and margin. Each question is tagged to its outline topic, so your score report shows exactly where you miss, and every answer explains why the best choice is best, gives you a Remember line, and links the rule or page it comes from.
The real test: 75 scored multiple-choice questions plus 10 unscored pretest questions (85 in all) in 1 hour 45 minutes, at a test center or online. FINRA lists the passing score as 70 on an equated scale, so there is no fixed percent; the fee is $100, anyone 18 or older can take it with no firm sponsor, and a pass is good for four years. It covers 4 sections: capital markets (16%), products and their risks (44%), trading, customer accounts and prohibited activities (31%) and the regulatory framework (9%). Our practice test is full length, 75 scored questions plus 10 unscored, split like the outline, passing at 70% (53 of 75).
Here: 250 questions. Our own practice questions, built on FINRA's Securities Industry Essentials (SIE) content outline and written from public sources (the 1933 and 1934 Acts, the Investment Company and Investment Advisers Acts of 1940, SEC rules, FINRA and MSRB rules, Investor.gov, the Federal Reserve, TreasuryDirect and the IRS), with every answer's source linked. Topics are the exam's 4 sections. Not FINRA's exam questions. Free.
3. Understanding Trading, Customer Accounts and Prohibited Activities
~23
77
4. Overview of the Regulatory Framework
~7
23
"On the test" is the rough share of a 75-question test for each topic, following the exam's published weights.
10 sample questions
Which law created the Securities and Exchange Commission?
A.The Maloney Act of 1938, which provided for registered securities associations
B.The Investment Company Act of 1940
C.The Securities Act of 1933, which requires registration of new issues
D.The Securities Exchange Act of 1934
Show answer
D. The Securities Exchange Act of 1934
SIE-1 · 1. Knowledge of Capital Markets · Exchange Act §4, SEC: About the SEC
A corporation is liquidated. In what order are claims paid?
A.Common stockholders first because they own the company, then preferred holders, then bondholders and other creditors
B.Whoever bought earliest is paid first, regardless of whether they hold debt or equity
C.Secured creditors, then unsecured creditors and bondholders, then preferred stock, then common stock
D.All security holders share equally in proportion to the dollars they invested
Show answer
C. Secured creditors, then unsecured creditors and bondholders, then preferred stock, then common stock
SIE-41 · 2. Understanding Products and Their Risks · Investor.gov: Stocks
A customer owns a stock trading at $50 and wants to protect a gain if the price drops. Which order fits?
A.A sell stop at $45
B.A buy stop at $55
C.A buy limit at $45, entered as a day order only
D.A sell limit at $55, good until the customer cancels it
Show answer
A. A sell stop at $45
SIE-151 · 3. Understanding Trading, Customer Accounts and Prohibited Activities · Investor.gov: Types of Orders
A college student passes this foundational FINRA exam before working in the industry. How long does the passing result stay valid without a firm affiliation?
A.1 year
B.4 years
C.2 years
D.For life
Show answer
B. 4 years
SIE-228 · 4. Overview of the Regulatory Framework · FINRA: SIE Exam, FINRA Rule 1210
Which statement best describes the SEC's mission?
A.Guarantee that every registered security is a sound investment by reviewing and approving each offering's merits
B.Set interest rates and manage the nation's money supply
C.Insure customer cash and securities when a broker-dealer fails
D.Protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation
Show answer
D. Protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation
SIE-2 · 1. Knowledge of Capital Markets · SEC: About the SEC
What is the most a common stockholder can lose if the company goes bankrupt?
A.The amount invested
B.Twice the amount invested
C.Nothing, because SIPC repays stockholders of failed companies
D.The company's unpaid debts divided among all shareholders
Show answer
A. The amount invested
SIE-42 · 2. Understanding Products and Their Risks · Investor.gov: Stocks
A customer enters a buy limit order at $30 for a stock now trading at $32. When can the order be filled?
A.At $32 or higher
B.Only at exactly $32, the current price when it was entered
C.At any price once the stock first trades at $30, even above it
D.At $30 or lower
Show answer
D. At $30 or lower
SIE-152 · 3. Understanding Trading, Customer Accounts and Prohibited Activities · Investor.gov: Types of Orders
Which associated person of a member firm must generally register with FINRA?
A.A mail clerk who sorts and delivers incoming mail
B.A person who solicits customers and takes their orders
C.A receptionist who answers phones and greets visitors
D.An IT technician who maintains the office computers
Show answer
B. A person who solicits customers and takes their orders
SIE-229 · 4. Overview of the Regulatory Framework · FINRA Rule 1210, FINRA By-Laws
A prospectus cover page says the SEC has not approved or disapproved the securities. Why is that statement there?
A.Registration means disclosure was filed, not that the SEC judged the investment's merits
B.The SEC reviews only offerings sold to accredited investors and skipped this one
C.The issuer chose to skip SEC review by filing under a state blue-sky exemption
D.It warns that the registration statement has not yet become effective, so no sales may be confirmed until the SEC acts
Show answer
A. Registration means disclosure was filed, not that the SEC judged the investment's merits
SIE-3 · 1. Knowledge of Capital Markets · Securities Act §23, Securities Act Rule 481
Which right do common stockholders typically have?
A.To vote for the board of directors
B.To be paid before bondholders in a liquidation
C.To vote on the company's dividend amount
D.To receive a fixed dividend every quarter
Show answer
A. To vote for the board of directors
SIE-43 · 2. Understanding Products and Their Risks · Investor.gov: Stocks, Investor.gov: Proxy Voting