Free SIE Exam Practice Test
Realistic 50-question practice exam with instant feedback and score reports.
About this practice exam
Free SIE Exam practice test with 50 realistic multiple-choice questions, instant grading, and explanations. Administered by FINRA. Study with drill mode, category score reports, and a personalized review plan.
Exam format
- 50 multiple-choice practice questions
- Based on the FINRA exam format
- Drill mode with instant feedback and explanations after each answer
Study tips
- Review the official exam content outline before your first practice run.
- Take the full practice exam once to establish a baseline score by category.
- Focus review on categories where you score below the passing threshold.
- Re-take missed questions in drill mode until you can explain each correct answer.
- Schedule the real exam only after consistent passing scores on practice tests.
Sample SIE practice questions
Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.
- Question 1Options Strategies
A client, a high-net-worth individual, is concerned about the potential for their portfolio's value to decline significantly due to market volatility. They are looking for an investment strategy that offers downside protection while still allowing for some capital appreciation. Which of the following strategies would be most appropriate for this client?
- A.Purchasing put options on a broad-market index ETF.(Correct)
- B.Investing in a leveraged inverse ETF that tracks the S&P 500.
- C.Selling naked call options on a diversified portfolio of blue-chip stocks.
- D.Implementing a covered call strategy on a portfolio of dividend-paying stocks.
Explanation
Purchasing put options on a broad-market index ETF provides direct downside protection. If the market declines, the value of the put options increases, offsetting losses in the underlying portfolio. Selling naked calls exposes the client to unlimited risk, covered calls limit upside potential and offer only limited downside protection, and leveraged inverse ETFs amplify losses in volatile markets.
- Question 2Bond Mathematics
A registered representative is advising a client on a corporate bond investment. The bond has a coupon rate of 5.5%, a current market price of $950, and a face value of $1,000. The bond matures in 7 years. What is the bond's current yield?
- A.5.23%
- B.5.50%
- C.5.79%(Correct)
- D.6.11%
Explanation
The current yield of a bond is calculated by dividing the annual interest payment by the bond's current market price. The annual interest payment is 5.5% of $1,000, which equals $55. Therefore, the current yield is $55 / $950 = 0.05789, or approximately 5.79%.
- Question 3Options Strategies
An investor purchases 100 shares of XYZ stock at $50 per share. They also sell 1 call option contract on XYZ with a strike price of $55 for a premium of $2 per share. If XYZ stock closes at $58 at expiration, what is the investor's net profit or loss on this position?
- A.A loss of $100
- B.A loss of $300(Correct)
- C.A profit of $100
- D.A profit of $300
Explanation
The investor's cost for the stock is 100 shares * $50/share = $5,000. The premium received from selling the call is 100 shares * $2/share = $200. The stock price at expiration is $58. The call option is in-the-money ($58 > $55 strike), so the buyer will exercise it. The investor must sell the stock at the strike price of $55. The loss on the stock sale is (100 * $55) - $5,000 = $500. The net profit/loss is the premium received minus the loss on the stock: $200 - $500 = -$300. The total loss is $300.
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Frequently asked questions
How many questions are on this SIE practice test?
This practice test includes 50 multiple-choice questions designed to mirror the format and difficulty of the real SIE Exam.
Is this SIE practice test free?
Yes. You can start practicing for free. Create an account to save progress, track weak categories, and retake the exam.
Do I get explanations after each question?
Yes. In drill mode you see why the correct answer is right, why distractors are wrong, and practical examples where relevant.
How should I use this practice test to prepare?
Take the full exam under timed conditions, review missed questions by category, then focus study on your weakest sections before scheduling the real exam.
Does this replace official FINRA materials?
No. Use this as a supplement alongside official candidate information bulletins, textbooks, and hands-on experience required for your license or certification.
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