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.

What is the role of the M&A Department under FINRA regulations?

Audits financial statements of publicly traded companies
Creates the firm's procedures pertaining to Merger and Acquisition activity
Regulates the trading of stocks and bonds
Issues licenses to new broker-dealers

The correct answer is: Creates the firm's procedures pertaining to Merger and Acquisition activity

The role of the M&A Department under FINRA regulations is to create the firm's procedures pertaining to Merger and Acquisition activity. This involves developing and implementing policies and guidelines that ensure compliance with FINRA rules and regulations. Option A is incorrect as this is the role of the Public Company Accounting Oversight Board (PCAOB), not FINRA. Option C refers to the Securities and Exchange Commission (SEC), not FINRA. Option D is incorrect as FINRA does not issue licenses to broker-dealers, but instead approves and registers them.