FINRA SIE Investment Products and Risks — practice questions
41 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice FINRA SIE Investment Products and Risks in the app →Under United States securities law, what kind of entity is a mutual fund?How does a fund work out its net asset value per share?An investor places a mutual fund purchase order at 11 am. Which price fills the order?How often must a mutual fund or an ETF calculate its NAV?Which of these is one of the three basic types of investment company?What distinguishes a closed-end fund from an open-end fund?Which feature marks out a unit investment trust?How do retail investors buy and sell ETF shares?Who are the Authorized Participants in an ETF's structure?What is a creation unit?An ETF share trades at a premium when its market price is:An investor buys ETF shares while the fund is trading at a premium to NAV. What follows?Within what period must ETF and mutual fund shares traded through a broker settle?Why can a passively managed index fund still fall short of the index it tracks?Which disclosure duty falls on actively managed ETFs but not on comparable mutual funds?What return objective do leveraged and inverse ETFs set for themselves?What share price do government and retail money market funds try to hold?Which bond fund risk describes bond prices falling as interest rates rise?Which risk poses the greatest potential danger to investors in stock funds?By what other name are balanced funds known?How does the mix inside most target date funds change as the target date nears?How does a smart-beta fund build the index it follows?Which three routes return money to fund investors?A fund sells a portfolio security at a gain. What normally happens next for shareholders?Can a fund shareholder owe tax on fund capital gains in a year when the fund lost value?Why have taxes on ETF investments historically run lower than on mutual fund investments?An investor puts $1,000 into a fund carrying a 5% front-end load. How much reaches the fund?What ceiling does the SEC place on a mutual fund redemption fee?What do 12b-1 fees pay for?What does the expense ratio of a fund express?$10,000 is invested at a 5% annual return before expenses. After 20 years, what do annual expenses of 1.5% andWhat may a fund that calls itself no-load still charge?What do the several share classes of one mutual fund share?What is typical of Class A mutual fund shares?What may happen to Class B shares held long enough?Why does the back-end load on Class C shares not shrink over time?A brokerage firm sells a client an amount just below a fund's breakpoint to earn a bigger commission. How doesAn investor buys 200 ETF shares at an ask of $60 and sells at once at a bid of $59.50. What is the outcome?Which two kinds of prospectus does a mutual fund use?What does the financial highlights section of a prospectus hold?How does an investor get a statement of additional information?