SIE (Securities Industry Essentials) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Ace your Securities Industry Essentials (SIE) Exam with Examzify! Our practice exam features flashcards, multiple-choice questions with detailed explanations, and insightful tips to ensure your success.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

'Shelf registration' refers to which of the following practices?

Storing unregistered securities for future sale
Registering securities for immediate and future sale
A method of deregistering securities
Reserving securities for employee compensation

The correct answer is: Registering securities for immediate and future sale

Explanation Shelf registration refers to the process of registering securities with the Securities and Exchange Commission (SEC) for future sale to the public. This allows a company to register securities once, and then sell them in smaller amounts over a period of time. Option A is incorrect because "shelf registration" does not refer to storing unregistered securities; rather, it is the act of registering them. Option C is incorrect because it mentions deregistering securities, which is the opposite of registering them. Option D is incorrect because it mentions employee compensation, which is not related to the act of registering securities.