FINRA Updated SIE Exam Questions and Answers by lisa

Restricted stock refers to securities acquired through private placements, such as those offered under Regulation D. These securities are not registered with the SEC and are subject to holding period restrictions before resale.

A is correctbecause Regulation D offerings involve private placements, resulting in restricted stock.

Bis incorrect because IPOs involve publicly traded shares, not restricted stock.

CandDare incorrect because restricted stock is not obtained through warrants or exchange-traded options.

Step by Step Explanation:

Nonpublic Information: A customer’s net worth is nonpublic personal information that requires confidentiality under Regulation S-P.

Incorrect Options:

A, B, and D: Names, addresses, and phone numbers may be public unless linked to specific financial or personal details.

References:

SEC Regulation S-P (Privacy of Consumer Financial Information): SEC Regulation S-P.